Encouraging Electrification Within California's Successor Net-Metering Rates

Sierra Club retained Synapse to conduct an analysis that identifies optimal rates for successor net energy metering (NEM 3.0) customers in California. Optimal rates were defined as those that most strongly encourage solar NEM customers to electrify their vehicle and home (space heating, space cooling, water heating, clothes drying, and cooking) by reducing total energy bills when switching from gas to electric. Synapse conducted a bill impact analysis for single-family customers in Pacific Gas and Electric and Southern California Edison's service territories, evaluating several proposed rates. Our expert witness testimony, filed in June 2021, addressed which rates most strongly incentivize electrification, estimated the reduced greenhouse gas emissions associated with the electrification of the utility's NEM customers, and quantified the likely impact of the rate change on non-NEM customers.