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8 Job No. 2669.01 Water Systems Alternative Energy Feasibility Study 5.2 NET ENERGY METERING Net Energy Metering is an arrangement with SCE to give near -full retail value for renewable electricity to the customer who generates it. If the customer is generating more renewable electricity than the site is using, the net electricity is taken by SCE and credited to the customer for the retail value at the time the power is delivered. The solar projects will take advantage of this around noon at their peak output. They may be generating more power than the site is using, but they get compensated at the retail rate in effect whenever the power is exported. Solar projects attempting to offset a significant portion of the site load often export power during the middle of the day and import it the rest of the day. Without Net Energy Metering any excess electricity exported to SCE would be compensated at a few pennies a kWh. 5.3 NET ENERGY METERING AGGREGATION Net Energy Metering Aggregation (NEMA) is an arrangement with the utility to allow a site that generates more electricity than it uses over the course of the year to use the excess electricity to offset load on adjacent sites owned by the city. For example, if a renewable system were installed on one parcel and it generated more electricity than the loads on that parcel used in a year, the excess electricity could be used to offset electricity use at an adjacent parcel at retail rates. If Lot 1 had a renewable power source and it touched Lot 2 but not Lot 3, but Lot 2 touched Lot 3, then the Lot 1 power can be used to offset the Lot 3 load. A chain of contiguous sites can be used to pass power from one end to the other, even if it is not used by the middle sites. There are several sites that we anticipate will generate more electricity than they use. These include the hydro turbines at SA -3 and SA -6. The two turbine sites are offsetting very small loads at each site, as opposed to SA -1 which has a large pump load at the site to offset. One can make the argument that the SA -3 and SA -6 parcels are contiguous to the parcel the street is on, and all are owned by the city. That parcel is likely contiguous with all other parcels that hold streets and all are owned by the city. If this is the case, the power from one site, say the South Station, could be used at any city parcel contiguous with a street to offset electricity loads at retail rates. We have not seen this done before, but it is worth an attempt to maximize the value of the electricity. We raised the question with SCE NEM Customer Interconnection Services and they responded as follows: For the purpose of NEM Aggregation, Schedule NEM -ST. Special Condition 5 speaks to the eligibility requirements in great detail and addresses a few of your questions about parcel contiguity and eligibility, so I would recommend giving that a thorough read (a section touches on public thoroughfares/streets). From what you describe below, it sounds as though this may qualify for NEM -A, assuming there are no parcel adjacency/contiguity issues or other eligibility concerns mentioned in Schedule NEM -ST. Best Regards, NR NEM Customer Interconnection Services Southern California Edison Customer.Generation@sce.com (866)600-6290 CITY OF SANTA ANA 19H-16 Newcomb I Anderson I McCormick