The Latest
On November 21st, our side re-filed written arguments to the State Court of Appeal, making the case that the California Public Utilities Commission (CPUC)’s December 2022 “NEM3” decision was illegal and should be thrown out.
This step in the process follows a landmark California Supreme Court decision this past August ordering the Court of Appeal to consider the merits of our case.
In that decision, the CA Supreme Court agreed with our argument that courts have both a right and an obligation under the law and judicial standards to review CPUC decisions. The CA Supreme Court also said that the CPUC is subject to the same level of judicial review as any other state agency.
The CA Supreme Court told the Court of Appeal to actually review the merits of the case this time, instead of just deferring to the CPUC.
Here is more background on the lawsuit:
Who filed the lawsuit
The Center for Biological Diversity, Environmental Working Group, and Protect Our Communities Foundation are the lawsuit plaintiffs. These groups are rooftop solar allies. They worked side-by-side with nearly 200,000 Californians, Solar Rights Alliance, and 600 other nonprofits, cities and schools to stop the utilities and CPUC from killing rooftop solar.
Why they filed the lawsuit
In December 2022, the CPUC slashed the credit that solar users get for sharing their extra solar energy with the grid by 80%. This change affects anyone who went solar after April 2023.
Just as we warned, the real world impact of NEM3 is unfolding in the form of declining consumer adoption of solar (see p. 31) and business bankruptcies.
Details of the lawsuit
Our side argues that the CPUC’s NEM3 decision violates the law.
Specifically, our side contends that California law unambiguously says that any changes to the net metering program must consider all of the benefits of rooftop solar to all ratepayers, to the grid, and to the state’s environmental goals. In contrast, we believe that the CPUC only considered how net metering affects the utilities and their business model.
Last year, the Court of Appeal rejected our lawsuit, not because they disagreed with our argument, but because they believed that the courts did not have the power to review most CPUC decisions.
Our side appealed to the CA Supreme Court, who agreed with us that the CPUC was not above the law.
The CA Supreme Court then ordered the Court of Appeal to actually consider the merits of our case, like we originally asked.
That brings us to the current step in the process—arguing our case before the State Court of Appeal
What the lawsuit asks for
The lawsuit asks for the Court to reverse the CPUC’s NEM3 ruling and require the CPUC to redo the decision, this time while considering all of rooftop solar’s benefits.
What's next
Now that arguments have been filed, the Court of Appeal will read through them. They might also ask both sides to come before them in person to present their arguments and answer questions.
Once the judges feel like they have all the information they need, they will issue a decision. We expect that to happen by the middle of 2026. However, the exact date is not certain.
You can follow the lawsuit’s progress at the State Court of Appeal’s website.
