I see several comments about "excess" generation rates, etc. The utilities, I think, are not especially concerned about customers who, at the end of the Net Energy Metering billing year, have a modest 'overgeneration' for which the customer is paid approximately wholesale electricity rates (say, 4-5 cents/kWh). Utilities are much more concerned about the entire Net Energy Metering subsidy, whereby a customer who places solar panels on their roof can avoid any responsibility for the overall utility system costs, by feeding power into the grid at noon (credited at on-peak retail rates, for solar owners on TOU rates), then sucking it back off the system during the afternoon/evening and night.
Is solar power, fed back into they system during the daytime, worth 4-5 cents/kWh? Very likely. Is it worth 35 cents/kWh? Very unlikely. As a customer with no solar panels, I would prefer my utility to buy power at 5 cents, than 35 cents, because I pay the average cost of that power.
Please don't confuse SDG&E's recent proposal with an 'assault' of some kind on the year-end net over-generation payment (4-5 cents); it appears to be a way to get NEM customers to pay for at least some of the costs they impose on the utility system, irrespective of whether they over-generate on an annual-net basis. The impact on "solar cost-effectiveness" will be what it is -- I'm far more sympathetic to people who invested in solar last year, concerned the existing economics of their decision will be materially impacted, than I am to folks not-yet committed to solar, who are alarmed that the free ride of Net Energy Metering may be curtailed before they can sign a contract.
Let's debate the "open" subsidies like state/utility rebates for solar installation, but don't pretend that uncontrollable, un-dispatchable power that is subject to outages, is somehow worth retail Tier 3-4-5 residential prices. SDG&E appears to be challenging the PC "solar-at-any-price" wisdom, but their economics and logic have a solid foundation in principle.