The California Supreme Court sided with environmental groups in Thursday’s ruling and said it was wrong in its claim that state lawyers could not challenge the Public Interest Commission’s decision to reduce rooftop solar incentives.
The unanimous decision sends back the lawsuit filed by the three groups to the Court of Appeal.
The group alleges that the Utilities Commission violated state law in 2022, reducing the value of credits panel owners receive to send unused electricity to the electric grid up to 80%. The rules apply to Californians who install panels after April 14, 2023.
A Supreme Court judge said he made a mistake in January 2024 when the Court of Appeal ruled over environmental groups. In its decision, the Court of Appeals said the court had to postpone how the committee interpreted the law because it had more expertise on utility issues.
“The recurring criteria for this review leave no basis for preventing obstacles in the work of the committee,” the Court of Appeal concluded in its opinion.
The environmental group argued that the Court of Appeals ignored the 1998 law. It said the committee’s decision should be kept in court review of the same standards as that of other state agencies.
“The California Supreme Court has held that the CPUC does not exceed the law,” said Bernadette Del Chiaro, senior vice president of the Environmental Working Group, after the decision was released on Thursday. Other groups submitting the case are biodiversity centres and protect our community foundation.
The Utility Committee did not immediately respond to requests for comment regarding the ruling.
There are over 2 million solar systems on the roofs of California homes, businesses and schools. Environmentalists say that in order for the nation to achieve the goal set by the 2018 law, which is to use only carbon-free energy by 2045, the nation must increase its numbers to achieve that goal.
The Utility Committee says the credit given to owners of electricity bill rooftop panels has become so valuable that it is bringing a billion-dollar “cost shift” to those who don’t own the panel. This has increased the damage to electricity bills, particularly low-income electricity customers, the committee said.
Energy credits sent from the rooftop system to the grid were valued at retail electricity rates. This has risen rapidly in recent years as the committee voted in recent years to approve the rate increases that the utility requested.
The state’s three large commercial utility companies – Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric, are responsible for the power of attorney for the case.
The utility has complained that electricity bills are rising as rooftop solar panel owners don’t pay a significant percentage of the fixed costs needed to maintain the electric grid.
For decades, utilities have worked to reduce energy credits aimed at encouraging Californians to invest in solar panel systems. The rooftop system has been reduced to utility power sales.
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