CPUC Approves Peak Period Shifts for SDG&E TOU Rates

The California Public Utilities Commission (CPUC) has approved peak period shifts for San Diego Gas & Electric (SDG&E), which officially went into effect on December 1, 2017. The changes include a major shift of the time-of-use (TOU) periods, moving the midday summer “on-peak” window from 11 am to 6 pm, out to 4 pm - 9 pm. SDG&E becomes the first investor-owned utility (IOU) in California to implement these radical changes, as part of their General Rate Case (GRC) filing. Both Pacific Gas & Electric (PG&E), and Southern California Edison (SCE) are looking to follow suit in their pending GRC filings.

Key Provisions

• The new rates became effective on December 1, 2017, and will be fully implemented by 2019.
• Shifts the “on-peak” period to 4pm - 9pm (from 11am to 6pm)
• The “on-peak” period will now apply 7-days a week, instead of only on weekdays
• The summer season will be shortened to five months; May will now be considered a winter month
• Grandfathering protections: existing residential customers can keep their existing TOU schedule for five years, and C&I customers for ten years. Note: the TOU window definitions stay the same, but the pricing can change.
• This decision approves increases in fixed charges for C&I customers, increasing 20 percent per year for the next three years.

What's the net effect?

The CPUC decision was widely criticized by solar industry advocates, including CALSEIA, SEIA, and Vote Solar, commenting that it “undermines California’s clean energy and climate leadership.” For the vast majority of customer load profiles, the new TOU rates erode the ‘$/kWh value of solar’, compared to the old TOU rates. Each customer and project is affected differently, based on their specific rate schedule, the shape of their load profile, and the shape of the solar production profile. It is anticipated that the CPUC will approve similar TOU rate change proposals for both PG&E and SCE in their pending GRC filings.

Updates made in Energy Toolbase

• Our rates team has updated all the 12/1/2017 SDG&E rates on the ETB platform.
• We have also loaded in all the SDG&E Grandfathered rates, where applicable.
• Rates will continue to be updated as the full rollout of rate implementation continues.

Links

• SDG&E Advice Letter, detailing the changes, San Diego Gas & Electric
• California regulators call for later peak under SDG&E time of use rates, PV Magazine
• Future-proofing solar PV savings with Energy Storage, Energy Toolbase