A guide to understanding your Net Energy Metering statements and bills.

What every green energy household and business should know. At PG&E, we’d like to congratulate and thank you for choosing renewable energy. Like tens of thousands of our customers — more than any other utility in the nation — you’re generating your own clean power to save money on your bill and help the environment.

What’s done: Let’s start with a clear picture of the steps you’ve taken and decisions you’ve already made to understand what’s to come.

Completed: Applying for Interconnection.

You or your contractor have already secured the Interconnection Agreement with PG&E and selected a Rate Schedule for electricity. At that time, you may have opted for a standard rate plan that does not vary by time period (E-1 for residential or A-1 for small commercial) or a Time-of-Use rate plan that adjusts according to the time of day and season the energy is used (E-6 for residential or A-6 for small commercial).

Completed: Connection to the Grid.

Following all necessary approvals, your generating system was safely interconnected to the grid. The date of interconnection is an important milestone, since it marks the start of your annual 12-month billing cycle.

What to expect next: Understanding what it means to be enrolled in the Net Energy Metering (NEM) program and how your billing works is key to using the information it provides as an energy management tool.

The NEM basics.

The electricity generated by your system is first used to serve the energy needs of your home or business, which offsets the amount of electricity that needs to be provided by PG&E. Any electricity you don’t consume at any given moment will be exported to the grid. When your system is not generating energy — like at night — or if it does not generate enough to meet all of your energy needs, the shortfall of energy will be supplied by PG&E.

The SmartMeter™ at your home or business measures your “net energy usage” — the difference between what your system generates and what you consume. Some months, you may use more energy than your system generates, which results in a charge. Other months, your system may produce more energy than you consume and therefore you receive a credit. Participation in a Time-of-Use plan can also result in a credit, if you are exporting energy to the grid when rates are higher and consuming energy when rates are lower, like at night. Throughout the 12-month billing period, your charges are offset by your credits and that determines whether you wind up with an amount due for the year or not.

What every green energyhousehold and businessshould know.At PG&E, we’d like to congratulate and thank you for choosing renewable energy. Liketens of thousands of our customers — more than any other utility in the nation — you’regenerating your own clean power to save money on your bill and help the environment.

What’s done:Let’s start with a clear picture of the steps you’ve taken and decisions you’ve alreadymade to understand what’s to come.

Completed: Applying for Interconnection.

You or your contractor have already secured the Interconnection Agreement with PG&Eand selected a Rate Schedule for electricity. At that time, you may have opted for a standard rate plan that does not vary by time period (E-1 for residential or A-1 forsmall commercial) or a Time-of-Use rate plan that adjusts according to the time of day and season the energy is used (E-6 for residential or A-6 for small commercial).

Completed: Connection to the Grid.

Following all necessary approvals, your generating system was safely interconnectedto the grid. The date of interconnection is an important milestone, since it marks thestart of your annual 12-month billing cycle.

What to expect next:Understanding what it means to be enrolled in the Net Energy Metering (NEM) programand how your billing works is key to using the information it provides as an energymanagement tool.

The NEM basics.

The electricity generated by your system is first used to serve the energy needs of yourhome or business, which offsets the amount of electricity that needs to be provided byPG&E. Any electricity you don’t consume at any given moment will be exported to thegrid. When your system is not generating energy — like at night — or if it does not generateenough to meet all of your energy needs, the shortfall of energy will be supplied by PG&E.

The SmartMeter™ at your home or business measures your “net energy usage” — thedifference between what your system generates and what you consume. Some months,you may use more energy than your system generates, which results in a charge. Othermonths, your system may produce more energy than you consume and therefore youreceive a credit. Participation in a Time-of-Use plan can also result in a credit, if you areexporting energy to the grid when rates are higher and consuming energy when rates arelower, like at night. Throughout the 12-month billing period, your charges are offset by yourcredits and that determines whether you wind up with an amount due for the year or not.

The billing process.

Upcoming: New PG&E bills and Net Energy Metering (NEM) statements.

While you’ll continue to receive a normal PG&E bill, you’ll notice the amount for electricity is now a monthly minimum charge until the 12-month reconciliation called “True-up.” Around the same time, but in a separate envelope, you’ll start receiving the NEM statement that provides you with a monthly and year-to-date snapshot of your current and accumulating charges and credits and net energy usage.

Upcoming: True-up.

Every 12 months following your system’s interconnection to the PG&E grid, you’ll get a “True-up” statement that reconciles all the electric charges and credits you received during the 12-month billing cycle. If you have a balance remaining, it tells you what amount is due and will appear on your regular PG&E bill. If you have a credit remaining, it resets to zero and only the minimum charged is owed. You’ll also learn if you’re eligible for “Net Surplus Compensation” payments for any excess energy you generated in total over the entire annual billing period.

Upcoming: New 12-month billing cycle.

Once all charges, credits and compensation are reconciled through True-up, the process begins all over again for a new 12-month cycle.

It all adds up to the big solar picture. While every home or business generating energy saves money on their bills, how it works for you may be somewhat different than how it works for your neighbors with renewable energy systems. It all depends on how much energy your system generates, how much you use and the rate you’re on to determine if you end up with either a net charge or a net credit for the 12-month cycle on your True-up bill. But remember once your bill is trued up or reconciled, you must pay any balance owed and any residual credit is zeroed out.

In addition, customers who end up being net generators — meaning they send more power to the grid than they used in the 12-month period — are compensated for that excess power. However, the amount paid is not equal to the credit appearing on your NEM statements. Instead, PG&E pays customers the wholesale market value of this energy, which is less than the full retail rate used to offset their electric charges.

As you can see, it’s worthwhile to become acquainted with both your NEM and True-up statements and how they affect you. One of the benefits is that you’ll now have access to new information intended to help you monitor and manage your energy usage.

Monitoring success: Your Net Energy Metering statement. For most customers, the NEM statement provides a useful tool to understand current energy use and help you keep track of how you’re progressing for the year to avoid any billing surprises.

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Service dates and True-up period. This statement is sent on a monthly basis throughout the “True-up” period, an annual billing cycle beginning on the date of your interconnection and ending approximately 12 months later.

Account details. Use the statement for a quick reference to your electric rate schedule, account identification and service identification number.

Total current billed amount. This is the minimum amount due that you’ll need to pay at this time and is reflected on your regular PG&E bill. It does not include the actual charges for electricity until your True-up month.

Current and cumulative charges and credits. The statement lets you keep track of your monthly charge or credit and year-to-date accrued balance since the start of the True-up period.

Page 2PACIFIC GAS AND ELECTRIC COMPANYNET ENERGY METERING ELECTRIC STATEMENT

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ENERGY TRUE-UP HISTORY:BILLINGMONTH

BILL TODATE

SUMMERON

SUMMERPART

SUMMEROFF

WINTERPART

WINTEROFF

TOTALENERGY

ENERGYCHARGES/CREDITS

AUG 2011JUL 2011JUN 2011MAY 2011APR 2011MAR 2011FEB 2011JAN 2011DEC 2010NOV 2010OCT 2010

08/15/1107/16/1106/15/1105/17/1104/18/1103/16/1102/14/1101/13/1112/15/1011/15/1010/14/10

-150-149-150-93

-37-100

-126-125-114-45

-4-70

-103-115-101-113

-652

-323140396560-3

-79-249-61-131103111-5

-379-389-365-362-218-21-92168171-55-118

$-70.76$-72.05$-73.42$-57.56$-20.14$-1.47$-8.17$16.35$16.34$-13.04$-36.06

TOTALS -1,660 $-319.98**Energy Charges/Credits (-) include all energy related amounts and taxes.

Net kWh

-210

-140

-70

0

70

140

AUG2011

JUL2011

JUN2011

MAY2011

APR2011

MAR2011

FEB2011

JAN2011

DEC2010

NOV2010

OCT2010

Sum On Sum Pt Sum Off Win On Win Pt Win Off

THIS IS NOT A BILLService Dates: September 07,2011 to October 06,2011

Rate Schedule: XXXX/NEMSAccount ID: 0123456789

Service ID: 0123456789

JOHN SMITH123 YOUR STREETCITY STATE AREA CODE

True-up period from Jul 2011 to Jun 2012

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5Payment options. Net Energy Metering requires a 12-month billing cycle, therefore electric charges, if any, are not billed until the annual True-up. While you’re required to pay the minimum amount each month, you may elect to make a payment on your electric charges at any time during your True-up period. However the payment will not be reflected in your NEM statements and will be applied toward future minimum electric and gas charges on your regular PG&E bill.

6Energy True-up history. This chart shows how much net energy you generated or consumed each month along with the associated charge or credit. It also provides a snapshot of the total net energy from the start of the True-up and accumulated balance.

7 Net usage graph. This provides a visual picture of your net energy usage including time periods and seasons if you’re on a Time-of-Use rate.

Your PG&E True-up bill. At the same time, you should become familiar with your True-up statement, since it gives you the true end-of-year picture. The two main elements are a summary of your final balance after all your credits and charges are reconciled. This indicates whether there is an amount due and if you’re eligible for compensation based on the total net usage.

www.pge.com/MyEnergy

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Service Information

Meter # 1098765432 Total Usage 462.000000 kWh Baseline Territory T Heat Source Electric Serial F Rotating Outage Block 5M

Visit www.pge.com/myenergy for a detailed bill comparison.

Details of Electric Charges

02/12/2013 - 03/14/2013 (31 billing days) Service For: 1234 Main Street Service Agreement ID: 9087654321

Account No: 1023456789-0 Statement Date: 03/15/2013

Due Date: 04/05/2013

ENERGY STATEMENT

Total Electric Charges $4.58

Rate schedule: NEMS T Net Energy Meeting Service

Net Charges $4.58

02/12/2013 - 03/14/2013

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True-up billed amount.

This represents the final amount owed after all energy charges, credits and previously-billed monthly minimum charges have been reconciled at the 12-month True-up. If you generated more energy than you used over the True-up period, this amount also includes your Net Surplus Compensation.

Net Surplus Compensation.

If you generated more energy than you consumed over the entire 12-month True-up period, you will be eligible to receive payment for the excess energy sent to the grid. Compensation will be a market price of approximately 4 cents per kilowatt-hour (kWh) and will be factored into your True-up billed amount.

3 Electric charges on PG&E bill.

The electric charges reflected on your regular PG&E bill on your True-up month represents the total True-up billed amount including any applicable taxes and surcharges.

Your PG&E True-up bill.At the same time, you should become familiar with your True-up statement, since itgives you the true end-of-year picture. The two main elements are a summary of your final balance after all your credits and charges are reconciled. This indicates whether there is an amount due and if you’re eligible for compensation based on the total net usage.

True-up billed amount.

This represents the final amount owed after all energy charges, credits andpreviously-billed monthly minimum charges have been reconciled at the 12-month True-up. If you generated more energy than you used over the True-up period, this amount also includes your Net Surplus Compensation.

Net Surplus Compensation.

If you generated more energy than you consumed over the entire 12-monthTrue-up period, you will be eligible to receive payment for the excess energysent to the grid. Compensation will be a market price of approximately 4 centsper kilowatt-hour (kWh) and will be factored into your True-up billed amount.

Electric charges on PG&E bill.

The electric charges reflected on your regular PG&E bill on your True-upmonth represents the total True-up billed amount including any applicabletaxes and surcharges.

Adding to your solar savvy. Last, but not least, it’s worth taking a look at some key questions other customers have asked about our billing statements and tools.

Question: Can I access my charges and credits online?

We strongly recommend enrolling in My Energy at www.pge.com/myenergy for easy access to your PG&E bill and NEM statements. You can review your net usage online and make payments on your regular PG&E bill. Here, you’ll also find the information you need to understand and manage your energy use.

Question: Why is it important to know whether I generated more energy than I used, or vice versa?

While solar always saves money by cutting down on your need to purchase power, you can go even further to maximize your benefits. Understanding when and how you’re using or generating energy helps you make informed decisions about managing your usage.

Question: Why is there a small monthly charge from PG&E for having solar?

The “minimum amount due” charge reflects a nominal amount that all customers on your selected rate schedule must pay regardless of whether or not they have solar or if any electric is used.

Question: Why are my Net Energy Metering payments not reflected in the statement?

Under the Net Energy Metering program, you’re on an annual True-up period to allow the credits you accumulate to offset the charges you accrue over the course of the entire 12-month billing cycle. Therefore, payments made in advance are allocated to any charges on your regular PG&E bill — gas and minimum electric charges.

Question: Why is PG&E’s payment for the excess energy I generated less than the rate I pay?

In accord with the legislation creating this excess energy payment program, the CPUC set compensation at about 4 cents per kWh to be consistent with the market price of energy.

Question: What does SmartMeter™ mean for me?

SmartMeter™ technology gives you a detailed and useful view of your net energy usage. View a breakdown of your monthly net energy usage in 15-minute, hourly or daily intervals to see how you earn credits by sending energy to the grid, or incur charges by drawing electricity from the grid.

For more information visit www.pge.com/nembilling or call 1-877-743-4112.

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Getting the most out of SmartMeter™

and My Energy. The SmartMeter™ measures the flow of energy between your home or business and the electric grid. The best way to take advantage of this information is to enroll in PG&E’s My Energy, which provides easy access to monitoring your usage and the ability to make informed decisions about how to manage your energy.

�� See your net energy use — the difference between what you generated and what you consumed — on a daily, monthly and yearly basis.

�� Get instant access to your regular PG&E bills and Net Energy Metering (NEM) statements by viewing and downloading them online.

�� View a breakdown of your monthly net energy usage in 15-minute, hourly or daily intervals to see how you earn credits by sending energy to the grid, or incur charges by drawing electricity from the grid throughout the month.

�� Download this information in a spreadsheet format for even easier analysis. Simply use the “Green Button” under the “My Usage” tab, and you’ll find new ways to maximize your renewable energy investment.

SmartMeter™ captures detailed usage data that you can access online through My Energy*. Click on the “Green Button” under the “My Usage” tab to create charts showing energy use patterns so you can see when you are sending versus drawing power from the grid.

Visit www.pge.com/myenergy and have your PG&E account number (which can be found on your energy statement), the primary phone number associated with the account and a valid email address available.

“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. ©2013 Pacific Gas and Electric Company. All rights reserved.

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* Please note that SmartMeter™-enabled benefits are not available if you've opted out.