Net Energy Metering and Tracking

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PG&E's Net Energy Metering (NEM) program provides customers the ability to offset the cost of their electricity with energy their solar generating system exports to the grid. The way it works is that PG&E will install a "net meter" on a customer’s solar system that measures the difference between the amount of electricity supplied by PG&E and the amount of electricity exported over the course of a billing month. After 12 billing cycles, the corresponding amounts are reconciled, and any remaining charge is then billed.

Typically, solar generating systems export more energy during summer months than a customer consumes. This surplus energy then generates credits for use during winter months when the system may not meet the customer’s energy needs.

Due to recently signed legislation supported by PG&E, effective January 1, 2011, the cap on the total generating capacity of solar and wind net-metered systems in PG&E's service territory will be increased to 5 percent of PG&E's peak load needs. Until that time, a 3.5 percent cap implemented as a result of PG&E's approved request to increase the cap from 2.5 percent to 3.5 percent should comfortably keep the NEM program going through the end of December 2010, when the new cap becomes effective.

The table below shows the latest number of NEM customers in PG&E's service territory and of the combined capacity of their generating systems. These amounts are only estimates and do not replace PG&E's CPUC reporting requirements.

Date	NEM Installations – Number	NEM Installations CEC AC	Estimated Percent of Allowable NEM Peak
January 31, 2012	61,428	578.89 MW	2.77%

* These figures are updated monthly.