Election a or b

Settlement: Election A and Election B

If you generate more electricity than you consume over a 12-month period, the surplus electricity is called "net surplus electricity" (NSE). You can choose between two methods of compensation for your NSE – Election A or Election B. Both methods of compensation occur on your annual settlement date. The annual settlement date is the anniversary of your solar system’s interconnection date or, if you moved into a house with an existing solar system, the date you opened your new electric account for that house.

Generally speaking, Election A is preferable for customers whose rooftop solar systems are oversized relative to their electricity consumption – customers who tend to generate NSE every year. If your rooftop solar system is sized to generate an amount of energy less than or equal to your annual energy consumption, or if your electricity consumption may increase in the future, you are likely to be better served by Election B. Customers who generate NSE may submit a Net Surplus Electricity election form to change their election once a year, as long as their election form is submitted at least 60 days before their annual settlement date. Customers who do not make an election are automatically enrolled in Election B.


Option A: CASH OUT


Your NSE (in kWh) over the last 12 months is multiplied by the NSE compensation rate (in dollars) to produce a cash credit. This cash credit is applied to your next utility bill for any utility charges (including other utility services like water, gas and waste).

 pros and cons of Option a



You roll forward your NSE (kWh) so you can offset electricity you import from CPAU in the future (in kWh) at the retail rate


 pros and cons of option b





  Contact Us

For questions about NEM 1 or your NEM Reservation, please read our NEM FAQs or call CPAU Program Services at (650) 329-2241. 

For questions about your bill, please call utilities customer service at (650) 329-2161.