Well it's about time. But why should the L.A. Department of Water and Power limit the amount of solar energy it will buy from customers through 2016 to 100 megawatts? Why not buy all the solar power available? Why can't residential customers sell all the power they generate?
Residential customers' meters should simply run backward when they generate more power than they are using, essentially selling it back at the same rate they pay. We would end up with a broad-based system less reliant on large, centralized facilities with all the large liabilities (think San Onofre).
Of course, this would mean that as more people installed solar panels, the increasing energy supply would push down prices and cut into the big power companies' profits.
Looks like I answered my own questions.