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Why did you deliberately choose to disregard the first part of my post advocating for a clear, above-line ready to serve fee charged to every meter, separate from generation costs?

Nobody is saying grid maintenance costs don’t exist. I’m saying the way being currently proposed to rectify the problem by severely penalizing clean energy is batshit crazy and fails to capture all of the variables in the calculus.


Zabe has no argument other than the fixed costs malarkey. He’ll ignore everything else just to keep parroting the fixed costs issue because he thinks it’s the only issue in play. It’s not worth engaging in him for more insight because he doesn’t have anything else to provide.
 
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I’m not sure how everyone here feels they are not paying their fair share, I have a 2000 sq. Ft. Home just my wife and I we are all electric have a efficient heat pump system never use the a/c and only have the heater on in the morning in the winter for 2 hours then use a wood stove. We use around 1200 kWh a month and have solar with 2 powerwalls. Our bill last month was $190 and will be more this month, do you not think I’m paying my fair share to Pacific Graft and Extortion.
 
I’m not sure how everyone here feels they are not paying their fair share, I have a 2000 sq. Ft. Home just my wife and I we are all electric have a efficient heat pump system never use the a/c and only have the heater on in the morning in the winter for 2 hours then use a wood stove. We use around 1200 kWh a month and have solar with 2 powerwalls. Our bill last month was $190 and will be more this month, do you not think I’m paying my fair share to Pacific Graft and Extortion.


Yep, the proponents of the IOU proposal simply fixate on the solar customers who put in the largest arrays to offset 100% (or in h2ofun's case 200%) of their annual consumption. They cherry pick the easy low hanging fruit because their entire argument requires they paint every solar customer to be a wealthy fat cat rich jerk. Since the IOUs are pushing a class warfare argument, they naturally need to segment the classes to the extremes and ignore the middle ground.

I agree with you, most solar customers are still paying monthly electricity bills and paying some "share" of the fixed costs. But the IOU proponents need to pretend you are paying zero for their argument to work. As we've seen with Zabe, he'll simply fixate on the very few rich people with mega solar arrays and ignore every single concept that suggests the class warfare cost shift is utter baloney when assessed at large.

Data shows the average residential solar system constructed in California over the last 10 or so years (during NEM 1.0 and 2.0) is around 6 kWp (I'm assuming this is DC since that's how solar is frequently discussed for the general pop). The trend is towards larger systems since costs are coming down, but overall the "100% net out" folks are the minority.

A 6 kWp DC array with normal losses (shading, angle, etc) will only offset around 80% of the average of the EIA's estimated West-region single family detached home's energy consumption of 10,333 kWh.

So here's the kicker. The IOUs want to say solar is being installed only by rich jerks and not the "average." If you presume that rich people have homes that are larger than average, EVs, and lifestyles that use more energy (eg: AC and pool heaters), then there is no way the "rich jerk" uses the same 10,333 kWh as the average single family home. So with all these stats, it would be impossible to conclude that the average California solar customer has a solar system that covers 100% of annual consumption.

This red herring of "cost shift" is what Dr Faruqui articulated in his response to the CPUC. And we've seen countless examples here on TMC about how the IOU cost shift argument is flawed.

By and large, solar customers are still paying some portion of fixed costs in their volumetric pricing for imports. And by and large it's proven that residential solar installations have reduced demand on the grid at large by distributing generation/consumption to the endpoints.

But it's easy for the IOU proponents to ignore all this since they don't have much else to offer by way of an argument. And since they're the ones paying off the CPUC (indirectly of course), they don't need any other arguments. They just need the imaginary boogeyman rich person to validate their red herring.
 
Who pays for the replacement of the transformer and wiring that goes from the distribution system to a solar customers home when they are paying $10/mon for 20 years? Who pays for the winding replacement on the transformer that feeds the 12kV system that feeds the solar customers area? Who pays for the wages of the troubleman who is troubleshooting the outage in the solar customers area? The fair share argument is worthless to those not paying the fair share.
Who pays it when when people reduce their consumption by adding insulation, put in LED lights, switch to more efficient appliances, move to smaller homes, use gas for heating and cooking, live in a moderate climate, don't use electricity when they go on vacation, etc?
 
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Who pays it when when people reduce their consumption by adding insulation, put in LED lights, switch to more efficient appliances, move to smaller homes, use gas for heating and cooking, don't use electricity when they go on vacation, etc?
I still run my ~1991 central AC unit instead of replacing it, because think of the poor linemen just trying to feed their families...
 
This shouldn't be that complicated.

Charge everyone the same monthly access fee for infrastructure construction and maintenance.
Have the rate charged reflect generation and distribution costs.
Have the cost burden of exported solar reflected in the compensation rate.

If California wants to incentive residential solar then have the incentives come from somewhere other than utility rates.

The main problem with this is that California has let the electricity costs get so out of hand that it regressively impacts lower income households. But that problem should be addressed separately.
 
This shouldn't be that complicated.

Charge everyone the same monthly access fee for infrastructure construction and maintenance.
Have the rate charged reflect generation and distribution costs.
Have the cost burden of exported solar reflected in the compensation rate.

If California wants to incentive residential solar then have the incentives come from somewhere other than utility rates.

The main problem with this is that California has let the electricity costs get so out of hand that it regressively impacts lower income households. But that problem should be addressed separately.
The problem is volumetric pricing has made your first point impossible financially for the utilities without an existential public relations nightmare for them.

As it is, there is some level of use of electricity, which may well correspond to economic status, but may not, and below that level those customers, who probably number in the millions, are not paying a pro-rata cost for the grid. It costs about the same to get the grid to a little 1,000 sq foot house in East Los Angeles, as it does to a 20,000 square foot mansion in Beverly Hills, but unless the Mansion is super smart home, the Mansion is going to use a ton more electricity which would be fine, but because 80% of the cost of a kwh is for the grid, that Mansion pays not only its "pro rata share of the grid" but a share of like 20 other houses.

And volumetric pricing is bad enough, volumetric pricing with peak rates is even worse, since the peak rates do not simply reflect increased cost of electricity but peak profits.
 
Volumetric pricing has been in place to shift the fixed costs to the biggest consumers, who presumably are the richest (at least on average). A flat fixed cost plus lower volumetric cost would better reflect the grid costs, but is more regressive, and since this is CA, it ain't happening. So volumetric pricing only plus obscene costs, we end up with the highest paying consumers fleeing the IOUs and going solar. If the IOUs were charginng the average 15c per KWh folks pay everywhere else, there would be a lot less residential solar. The economics simply would not justify it.
 
7.5kw solar, 2 Powerwalls, and 2 EVs - my annual PG&E true up is inching ever closer to $2,000 every year, and I expect it will increase by at least 50% when I get forced off of EV-A at the end of this year. I pay plenty to support the grid.
I pay over $2500 at my true up. I don't have AC either. 5.5kw solar currently being replaced with 12kw solar roof. 2 powerwalls are back-up only.
 
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Volumetric pricing has been in place to shift the fixed costs to the biggest consumers, who presumably are the richest (at least on average). A flat fixed cost plus lower volumetric cost would better reflect the grid costs, but is more regressive, and since this is CA, it ain't happening. So volumetric pricing only plus obscene costs, we end up with the highest paying consumers fleeing the IOUs and going solar. If the IOUs were charginng the average 15c per KWh folks pay everywhere else, there would be a lot less residential solar. The economics simply would not justify it.
Note there are the existing CARE and FERA programs to address the possible regressive rates issue. CPUC and the utilities can certainly resolve this issue in a fair way, while still addressing low income consumers, if they wanted to. I doubt it's because they care that it may be regressive or that even that the public really cares about that. The reality is such a change would affect ALL grid customers, and thus has a greater chance of a mass push back, as nobody likes paying more regardless of what is fair. While pushing this on solar only affects a minority of grid customers, and allows them to throw class warfare arguments to boot to garner more general public support (by painting solar owners as rich people that haven't been paying their "fair share").
 
I know it would be unpopular but a demand charge probably is most representative of the cost of the grid infrastructure. It would also drive ESS adoption if the software in the ESS could be programed to blunt demand.

In reality the fixed cost should be blended across a fixed connection fee, energy charge, and demand charge.