Cleveland Updates Rules for Local Energy Generation and Billing

Cleveland is updating how the city manages residents and businesses that install their own energy resources, such as solar panels, on their property. Through the passage of emergency ordinance 587-2026, the city is amending the Codified Ordinances to better handle the growing number of people connecting distributed energy resources to the Cleveland Public Power (CPP) electric grid. These changes are intended to maintain the safety and reliability of the city's electric distribution system while managing the billing and technical requirements of local energy production.

What's in the file

According to the Legislative Summary, the ordinance amends Sections 523.25 and 523.26 to address the increasing scale and frequency of distributed energy installations. The updates include:

The legislation establishes a specific two-step method for how power generated by a customer affects their utility bill:

  1. Generated power first reduces the Power Supply Recovery (PSR) portion of the customer's bill, up to the full amount of the PSR.
  2. Any additional power generated beyond the PSR amount is credited to the customer’s account as a "Customer Owned Generation Credit," calculated based on CPP’s purchased power cost at the time of the original billing.

Who may be affected

Status and timeline

  1. May 7, 2026: Ordinance 587-2026 was introduced to City Council.
  2. July 24, 2026: The ordinance was recorded in the City Record as passed.

Residents can verify these details by reviewing the official record for File 587-2026 via the Cleveland City Council website.

Source record

File
587-2026
Type
Emergency Ordinance
Status
Passed
Committee
City Council
Introduced
May 6, 2026

View on Cleveland Legistar

Official documents

Sources