Frequently Asked Questions
General Question About Electric Rule 21
Rule 21 applies to customers who:
- Generate power only for their own or "over-the-fence" use and do not export power to the electric grid.
- Generate power for their own use and for export to the electric grid for credit on their PG&E bills.
- Operate as qualifying facilities (QFs), as defined by the Federal Energy Regulatory Commission’s (FERC's) Public Utility Regulatory Policy Act (PURPA), that sell all of their energy that is exported to the grid to PG&E through a PURPA Power Purchase Agreement
The State of California provides incentives for the development of generators fueled by renewable energy sources. Your facility must use a renewable generation technology to qualify for Net Energy Metering (NEM). Renewable energy sources are defined in the latest version of the California Energy Commission’s (CEC’s) Renewables Portfolio Standard (RPS) Eligibility Guidebook and Overall Program Guidebook, as well as in PG&E's NEM tariff, as:
- Biomass
- Solar thermal
- Photovoltaic
- Wind
- Geothermal
- Fuel cells using renewable fuels
- Small hydroelectric (but a small hydroelectric generation facility is not eligible if it will cause an adverse impact on in-stream beneficial uses or cause a change in the volume or timing of stream flow)
- Digester gas
- Municipal solid waste conversion
- Landfill gas
- Ocean wave
- Ocean thermal
- Tidal current
To qualify for the RES-BCT program, a generating facility must also meet the standards for an eligible renewable energy source under RPS guidelines.
Interconnection is the electrical connection, using wires and protection devices, that allows your electric generator and the utility system to operate in parallel. Regardless of whether you export energy, your generator still operates while connected with the electrical grid. As a result, it must interconnect with the grid in a manner that ensures: :
- Safety—All electric generating systems are potentially dangerous if they are not operated properly. If your system connects to PG&E's electrical grid, PG&E must review and approve it to ensure the safety of the entire grid and to protect you, our personnel and other customers. Even if you don't intend to export energy to the grid, part of PG&E's responsibility is to ensure that the energy you generate does not flow back to the grid and create unsafe conditions.
- Reliability—PG&E must be able to meet our customers' expectation that power is always available when needed. If a fault or trip occurs on a customer's generation system, we must be able to isolate the problem so other customers can continue to enjoy reliable power.
- Compliance with government regulations—The Federal Government and State of California require that all generators operating in parallel with the grid have an interconnection agreement with PG&E.
Applying for Interconnection Under Rule 21
- If you select a Net Energy Metering rate schedule or a non-export interconnection, you must apply under Rule 21.
- If you select a PURPA Power Purchase Agreement under which you sell all your exports to the grid to PG&E, you can either Rule 21 or the Wholesale Distribution Tariff (WDT). The procedures are very similar, with similar applications, fee structures and technical requirements.
- If you select a non-PURPA PPA, under which you sell your exports to the grid to a third party, Rule 21 is not an option, and you must apply under the WDT.
Standard NEM >30 KW (Form 79-1101)
Expanded NEM 30KW – 100KW (Form 79-974)
NEMVMASH Multi-Family – same delivery point (Form 79-1109)
NEMVMASH Multi-Family – different delivery point (Form 79-1124)
Electronic applications are not complete until we receive your processing fee and study deposit (unless you are exempt). Please see Table E-1 under E.2.c of Rule 21 for more details.
Site Plan
Show generator location with respect to building, transformer, main switchboard, utility disconnect switch and other pertinent electrical equipment.
Single Line Drawing
Must include PG&E revenue meter (net generation meter for NEM) and utility disconnect switch with manufacturer and model number if required.
Site Control
Documentation reasonably demonstrating site exclusivity as stated in Electric Rule 21 Section C.
Proposed Relay Settings
Required if the generator is not certified or an external relay is used.
Protection Operating Description
Required if the generator is not certified or an external relay is used.
Because PG&E is fully committed to keeping customer account information confidential, we will not share your information with your contractor or other representative without an Authorization to Receive Customer Information or Act on a Customer's Behalf form providing your written authorization. (This information is built in to the September 2012 Standard NEM Application form.) You can use this form to authorize your contractor to complete most of the paperwork needed to apply for interconnection to the PG&E electric grid. If you plan to fill out the application materials yourself and you do not require PG&E to share your account information with your contractor, you do not need to submit this form.
The California Energy Commission may also require you to fill out an authorization form if you are applying for a rebate from them so they can access your account information.PG&E prefers that customers submit their applications online.
If you prefer to use US mail, please submit your application package to Pacific Gas and Electric Company by registered U.S. mail, ATTN: Electric Generation Interconnection, Mail Code N7L, P.O. Box 770000, San Francisco, CA 94177-0001. PG&E also accepts e-mail submissions to gen@pge.com.The queue is a list of interconnection applications used to assign responsibility for modifications or upgrades to the electric grid during the study phase. The queue also keeps track of the modifications and upgrades identified in a study phase but not yet implemented.
For all interconnection projects under Rule 21 except Net Energy Metering, PG&E assigns a queue position and posts it monthly to our website, as required by Rule 21 Section E.5.d. This queue is integrated with PG&E’s Wholesale Distribution Tariff interconnection requests.
In accordance with Rule 21, PG&E will conduct some or all of the following reviews to determine the interconnection requirements for a generation project. Generally, we will complete all steps in the interconnection process, including reviews and studies, within the timeframes outlined in Rule 21.
- Application Review: PG&E usually will acknowledge your application and review it for completeness within 10 business days of its receipt. The application must be complete before PG&E can move on to the initial review.
- Initial Review: As required by Rule 21 Section F.2, this review should be completed within 15 business days of PG&E's acceptance of the completed application. The review will determine if the generation facility qualifies for a simplified interconnection or if a supplemental review is required.
- Supplemental Review: This review, if required, should be completed within 20 business days of authorization to begin the review and our receipt of the $2,500 study fee, if required. The review will determine if the generation facility can be interconnected or if a Detailed Interconnection Study is required.
- Detailed Interconnection Study: The Detailed Interconnection Study process is for interconnection requests that are electrically independent from other proposed interconnection requests and fail to qualify for the Fast Track Process. The Detailed Interconnection Study process actually includes two studies:
- System Impact Study: This should be completed within 60 business days after authorization to begin the study and PG&E's receipt of the study deposit, if required. The study deposit is $10,000 for projects less than 5 MW and $50,000 plus $1000 per MW for all other projects, up to $250,000.
- Facilities Study: This should be completed within 60 business days of authorization to begin the study and PG&E's receipt of study deposit, if required. The study deposit is $15,000 for projects less than 5 MW. For all other projects, the deposit submitted for the System Impact Study will be applied toward the cost of the Facilities Study. These studies will determine if the generation facility can be interconnected and identify requirements to facilitate the interconnection. This process requires Financial Security Postings.
- Transmission Cluster Study: This process, if required because the project fails the Transmission Electrical Independence Test, requires the applicant to reapply under PG&E’s Wholesale Distribution Tariff Cluster Study Process to proceed with the interconnection. If the applicant does not take this step, the project is withdrawn from the Rule 21 queue.
The Interconnection Application Process
The timeline for completing the interconnection process varies. Project energy needs, location and impact on the PG&E electrical system all affect the amount of time your interconnection process can take. This chart includes some typical project timelines from application receipt to commercial operation (generator online). Your actual timeline may vary.
Fast Track Process 3-5 months
Detailed Interconnection Study 12 months
Delays in an interconnection project can be related to location, energy needs, distribution system infrastructure and size of generator. In addition, some of the more common causes for delays include:
- Missing or illegible field entries (for example, meter number) on the Request for Interconnection. Please complete all fields using a computer or print legibly.
- Mixed pages from old and new versions of the Request for interconnection. If your application/agreement requires updates, we recommend an entirely new submission using the current version.
- Incomplete application/agreement package. Use the list of required documents in each interconnection request form to make sure you have assembled all the items you need to submit a complete application. Click here to find the correct form.
- A change in proposed project design.
- Failure to perform a Commissioning Test (PDF) before your Pre-Parallel Inspection is scheduled.
- Use of non-certified and non-approved generation equipment (including protective relays, disconnect switches, transformers and generators).
Inspections and Tests
Please be sure all the following steps are completed before you schedule your pre-parallel inspection with PG&E:
- Execute all required agreements
- Arrange for PG&E to install the net energy meter if required
- Provide a copy of the final signed building permit and inspection for the generation facility
- Complete all electric work required by PG&E
- Ensure that PG&E has completed installation of (PG&E-owned) gas service and meter if required
- Complete your commissioning test and certification
If your generator is non-certified or certified with external relays, you must also submit the following information to PG&E a minimum of 15 business days prior to the inspection (electronic submissions are preferred):
- PG&E's approval of your single-line and three-line relay drawings
- Completed Generation Pre-Parallel Inspection Form (PDF) DG5 (one form for each generator)
- Completed Basic Information Requirement Form (PDF)
- Approved results of relay field "bench tests"
- Commissioning Test Certification Form
Net Energy Metering and Biling
Net Energy Metering (NEM) is a rate schedule that allows customers with an eligible electric generator to offset the cost of their electric usage with energy they export to the grid. With NEM, the customer pays only for the net amount of energy used from the utility. A specially programmed “net meter” (a meter that registers the flow of electricity in both directions) is installed to measure the difference between the electricity the customer purchases and exports to the grid within given time intervals. NEM customers are allowed to "net" their total annual energy exports to the grid against their annual usage. In some cases, when customers consume less energy than what they generate, the excess energy exported to the grid over this annual period is also purchased by PG&E at our avoided cost.
Net Energy Metering in California is available for solar, wind, biomass, biogas, hydro, geothermal and other renewable energy systems up to 1 MW. PG&E's NEM programs are: Standard NEM, Expanded NEM, Other Renewable NEM, NEMV, NEMVMASH, NEM Multiple Tariff and NEM Fuel Cell. The methods of applying credit for exported energy vary with the program.
If you select a time-of-use or seasonal electric rate schedule, your account may reflect a surplus even if you are not a net generator because, on some electric rate schedules, the rate per kWh is higher during certain times of day or year (e.g., summer season). If you generate more than you consume during these periods, you may be credited at a higher rate than the rate you're charged if you consume more than you generate.
Your charges or surpluses and applicable meter reads are detailed in your monthly NEM statement. While this statement is not a bill, it allows you to track your accumulating charges and surpluses. You'll continue to receive your regular PG&E bill during each billing cycle for other minimum, meter, customer, demand-based and gas charges. After 12 billing cycles, your charges and surpluses will reconciled to result in your annual "true-up bill."
Community Choice Aggregation program
PG&E performs a true-up at the time you change your energy supply service from PG&E to your CCA. PG&E will continue to send out your bill; however:
- For your generation charges, your bill will include charges or credits calculated by your CCA. Generation charges, shown on your PG&E rate schedule, appear under "Energy Charge." Please contact your CCA to find out how your generation charges are determined.
- PG&E will continue to determine the non-generation NEM credits and charges that appear on your bill.
Yes, you remain eligible for NEM if you are receiving your electric supply from a CCA. You will need to contact the CCA for details about its NEM program. Your CCA will determine its own NEM-related charges and credits for the generation portion of your bill. PG&E will continue to be your point of contact for the interconnection of your solar or wind generator with the electric grid and will calculate NEM-related charges and credits for the non-generation portion of your bill.
PG&E provides permission to operate your generation system under NEM regardless of who supplies your energy. To apply for NEM, please complete and submit to PG&E the documents listed on the Standard NEM website under “How do I apply?”. PG&E will review your completed application and, if approved, install your bi-directional meter. You may operate your system following receipt of your Permission to Operate letter.
If your solar or wind generator is larger than 30 kilowatts (kW), please follow the instructions on applying for Expanded NEM.You own any RECs for the power you generate and use at your own site. PG&E owns any RECs for the power we purchase under the PPA.
No. The California Public Utilities Commission has decided that customers who sell their power using a Feed-in Tariff must sell all their exports; they cannot split exports between NEM and a PPA.
If your existing meter can separately meter usage and exports, then you will not have to pay for two meters. However, you may have to pay a reprogramming charge so your meter will appropriately collect the information needed. If your existing meter cannot separately meter usage and exports, you will need to pay for the installation of a new meter.
PG&E generally has two types of electrical distribution systems: secondary and radial networks. Secondary networks are designed to meet the higher reliability needs and limited space commonly found in urban areas. The criteria PG&E uses to install secondary networks are a function of the density of the load, economics and other related factors. In PG&E's territory, only the downtown areas of San Francisco and Oakland are served by secondary networks.
In a secondary network, electricity is delivered through a complex, integrated system of transformers and underground cables that operate in parallel. Power can flow in either direction on the lower-voltage service delivery lines, commonly called secondary distribution lines. The loss of a single line or transformer in a secondary network does not cause an interruption of power, unlike in radial systems where there is only one line for power to flow through, starting at the distribution substation and terminating at the customer’s service entrance or meter. If a radial line experiences an outage, service is interrupted until repairs are completed.
In secondary networks, devices called “network protectors” prevent power from “back-feeding” from one transformer through another. Network protectors open (that is, break the circuit) quickly when they detect back-feeding. Any power exported by a generator into this system is detected as back-feeding by the network protectors. Since most network protectors are not designed or tested to operate as switching or isolation devices for operating electric generators, PG&E can't allow installation of net energy generators within areas served by secondary networks.Miscellaneous Questions
