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On March 9, 2026, the California Court of Appeal handed down a decision in favor of the California Public Utilities Commission’s (CPUC) Net Billing Tariff, which was adopted in 2022 as a successor to the then-current Net Energy Metering (NEM) 2.0 tariff. The Net Billing Tariff reduced compensation for exported energy due to concerns that…

As data centers and other large load customers seek to connect to California’s power grid, the California Public Utilities Commission (Commission) is rethinking how—and when—those customers should be refunded for costly transmission infrastructure upgrades.

Historically, distribution-level interconnection customers paid up front and received swift refunds under PG&E’s Base Annual Revenue Calculation (BARC) methodology. But the…

On October 13, 2025, the California Independent System Operator (CAISO) released its Draft Final Proposal for Interconnection Process Enhancements (IPE) 5.0—continuing its multi-year effort to modernize and streamline the interconnection process for new energy resources. The proposed reforms build on lessons learned from Cluster 15, previous IPE tracks, and stakeholder feedback.

Highlights of CAISO’s…

Update: Governor Newsom signed the Pathways Bill into law on September 19, 2025.

On September 13, 2025, Assembly Bill (AB) 825, titled the Independent System Operator: Independent Regional Organization Act, passed the California state Senate on a 34-0 vote, and a 74-1 approval in the Assembly.[1] The bill now heads to the Governor’s…

The California Public Utilities Commission (CPUC or Commission) has launched a new rulemaking to update Electric Tariff Rule 21 (Rule 21). This proceeding was initiated through an Order Instituting Rulemaking (OIR) adopted at the August 14, 2025 CPUC voting meeting, and seeks to modernize interconnection procedures in response to the rapid evolution of Distributed Energy…

Background

On August 7, 2025, the California Supreme Court issued its decision in Center for Biological Diversity, Inc. v. Public Utilities Commission (Cal., Aug. 7, 2025, No. S283614), 2025 WL 2253765 (Center for Biological Diversity). The case centers around the Net Energy Metering program, updated by the California Public Utilities Commission (CPUC) in…

On November 21, 2024, Pacific Gas & Electric Company (PG&E) filed an application at the California Public Utilities Commission (CPUC or Commission) seeking approval of a new Electric Rule No. 30 (Electric Rule 30) to address the interconnection of non-residential customers requesting retail electric service at transmission-level voltages between 50 kilovolts (kV) and 230 kV…

On Thursday, May 9, 2024, the California Independent System Operator (CAISO) issued an addendum to its Interconnection Process Enhancements (IPE) Track 2 Final Proposal, and issued a revised version of that addendum on May 17.  Track 2 focuses on modifications to the interconnection and queue management processes to address the substantial interconnection request volumes in…

Background

The California Independent System Operator’s (CAISO) recently issued Interconnection Process Enhancements (IPE) final proposal[1] provides heightened requirements to complete an interconnection request and relies on scoring criteria to determine which projects advance to the interconnection study process. Due to the proposed 150% cap on specific interconnection zones, not all interconnection requests in each…

Summary

On March 29, 2024, the California Independent System Operator (CAISO) released the Track 2 final proposal for its Interconnection Process Enhancements (IPE) initiative. The proposed changes in the IPE proposal aim to address the “unprecedented and unsustainable interconnection request volumes” in the CAISO.  CAISO proposes to adopt a zonal approach that prioritizes project interconnection in areas with existing or planned transmission capacity, to cap the number of projects permitted to proceed into the study process at 150% of the available and planned transmission capacity in specific zones, and adopt scoring criteria for eligibility and prioritization in the interconnection study process. Continue Reading CAISO Releases Interconnection Process Enhancements Final Proposal