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CPUC NEM 3.0 discussion
- Thread starter jjrandorin
- Start date
PG&E is really hurting due to us Solar people
The utility, whose headquarters are now in downtown Oakland, harvested $475 million in profits on $5.8 billion in revenue for the quarter ended in March.
PG&E’s first-quarter profits were nearly triple the $120 million the utility earned in the same quarter a year ago. Revenue increased 22.9% from the year before.
The average monthly bill charge from PG&E for residential electricity and gas service is now 14% higher for the typical customer than it was at the end of 2021.
PG&E has increased what it charges per month twice so far in 2022, with the first jump in January and the second in March. The state Public Utilities Commission authorized the rate proceedings that underpinned both increases in monthly bills.
PG&E revenue, profits soar after utility charges more on monthly bills
PG&E reported on Thursday a big increase in profits and revenue during its January-through-March first quarter, a three-month period that coincided with two hefty increases in what the utility …www.mercurynews.com
You should read some of the posts in the Policy sub. Some people think their bills would have been lower without residential solar.
RKCRLR
Active Member
Are they allowed to make a profit on preventative maintenance? They have crews all over the place trimming trees where I live. Could be a new profit strategy for them.PG&E is really hurting due to us Solar people
The utility, whose headquarters are now in downtown Oakland, harvested $475 million in profits on $5.8 billion in revenue for the quarter ended in March.
PG&E’s first-quarter profits were nearly triple the $120 million the utility earned in the same quarter a year ago. Revenue increased 22.9% from the year before.
The average monthly bill charge from PG&E for residential electricity and gas service is now 14% higher for the typical customer than it was at the end of 2021.
PG&E has increased what it charges per month twice so far in 2022, with the first jump in January and the second in March. The state Public Utilities Commission authorized the rate proceedings that underpinned both increases in monthly bills.
PG&E revenue, profits soar after utility charges more on monthly bills
PG&E reported on Thursday a big increase in profits and revenue during its January-through-March first quarter, a three-month period that coincided with two hefty increases in what the utility …
I think preventive maintenance is kind of good PR and forced on them especially they get sued for fire liability, just expenses on the books, they can raise price to adjust to their guaranteed profit margin. I wish they would trim those pine trees south and west of my house but they said no thanks, no fire or line danger concerns with those trees.
California's Public Utilities Commission may be close to publishing a new and "improved" version of NEM3.
On April 27, Solar Rights Alliance (SRA) did a 1 hour webinar (link) updating the status and taking some questions. I bring this up in this forum because battery storage, such as Tesla PowerWall, for rooftop solar looks to completely eliminate all of the utilities' so called problems with solar, and was mentioned in passing a few times in the webinar, including even by a utility shill.
Other pages on the SRA site point out how effective pushback from solar advocates has been so far, and how folks can lend a hand to help save solar.
SW
On April 27, Solar Rights Alliance (SRA) did a 1 hour webinar (link) updating the status and taking some questions. I bring this up in this forum because battery storage, such as Tesla PowerWall, for rooftop solar looks to completely eliminate all of the utilities' so called problems with solar, and was mentioned in passing a few times in the webinar, including even by a utility shill.
Other pages on the SRA site point out how effective pushback from solar advocates has been so far, and how folks can lend a hand to help save solar.
SW
How does the battery paired with solar address the "unfair fixed cost shift" issue? (I put it in parenthesis since I don't actually agree with the term).
Do they plan on having the interconnected battery pay a higher one-time interconnection fee? Or maybe force the battery to participate in a VPP (and getting wholesale/ACC rates for peak time export?)
They claim that solar quits at sundown, so solar customers still need full peak period capacity. That peak grid power defines the generation and long distance transmission capacity the utility must own and maintain, hence the "fixed costs".
In contrast, with or without solar, a battery allows one to charge during off peak periods and then discharge to cover their own needs during peak periods. This reduces the total demand and hence reduced the fixed costs, rather dramatically if utility data (link to an earlier post) is to be believed. I have used almost no peak period power since my PowerWall went online two years ago.
By reducing the peak load on transmission lines and generation, battery customers reduce the total capital investment, peak (expensive) generation cost and maintenance, which reduces the cost for all consumers.
Sadly, the utilities are guaranteed a profit as a percentage of cost, so while they must share the cost reduction from batteries with all consumers, it does reduce their profits. Which is why they want to kill solar, batteries, renewables, and anything that reduces their costs. Other wise batteries would be win, win, win, less cost for battery owners, other consumers and utilities. But with their own solar and batteries coming on line, plus EV and heat pumps driving up electricity demand, they have a bright future in spite of us non-consumers.
No one knows yet what the new version will propose. The best guess is that it will be a non-compromise-compromise, slightly less of a terrible thing. The first pass was scorched earth, give us $$$, kill solar and ingnore the people behind the curtain with batteries.
SW
We should literally switch the model on IOUs from guaranteed returns to capped prices. PGE electricity prices are 2 to 3 times higher than the US average, which makes no sense. CPUC should instead cap PG&E price per KWh and make it decrease back to US average over next 15 years, and let PG&E manage its expenses. The bloated expenses would disappear really quickly.
I just received an email from SCE with a 'draft' letter they are thinking about sending out along with a link to a survey. I would post the link, but if you try to open it you get "Your response for this survey has already been received. Thank you for your time and interest.")
They are still talking about reducing grandfather installations from 20 years down to 15
They are still talking about reducing grandfather installations from 20 years down to 15
As far as I'm concerned, if I don't have an agreement in writing to:
1. Not change peak/off peak hours AND
2. Not change the ratio of peak rates to off peak rates
Then the amount of time you're grandfathered is zero days.
It doesn't and I don't agree with the term either.
In a system of volumetric pricing ANY conservation of energy "shifts" the cost of maintaining the grid to those ratepayers who do not conserve.
If enough people conserve, but still require the grid the whole system collapses (economically).
Solar and battery storage conserves even more than solar alone.
California Assembly Bill 327 (Electricity: natural gas: rates: net energy metering) specified that the Public Utility Commission would set a transitionary period from Net Metering 1.0 to Net Metering 2.0.
and this was the PUC's decision -> is that 'in writing' enough for you?
Merrill
Merrill
I guess my question is what is the criteria to determine when the 15 or 20 year grandfather begin. I installed my original solar panels in 2010 and added some in 2016 then did the powerwalls in 2021.
RKCRLR
Active Member
I did similar. If you call PG&E they will verbally tell you that that grandfathering goes off the latest PTO which is inconsistent with other documents. I asked for something in writing stating that and they refused. I filed a complaint with the CPUC and PG&E responded with an email stating it goes off the earliest PTO.
So, in your case, it is 15 years from 2010 unless they make special allowances.
The only thing I've ever seen promised is to not change the NEM rules, i.e. interconnection fees and non-bypassable charges. But nothing stops the IOUs from redefining when peak hours are (which is generally later and later in the day) and lowering the rate they're paying you when the sun is shining in comparison to when it's not. They can grandfather you into your present rate plan (i.e. E-1 or E-TOU-B) but they aren't obligated to. In fact, E-TOU-B is going away, even for people who already have it, and E-TOU-D moves the peak hours farther into the evening. Unlike NEM2, NEM1 doesn't require a TOU plan but there is nothing stopping them from just eliminating non TOU plans entirely. Until those loopholes are closed, the IOUs can basically get away with whatever they want to by just manipulating the rate plans.
Merrill
Merrill
I am grandfathered on Domestic (tiered usage). A couple of years ago I tried TOU under their guaranteed 'Bill Protection' plan. At the end of the year True Up, under TOU we owed about $850 but once they applied bill protection/tiered rates, the bill dropped to about $80.
There is a reason why SCE defaulted all their customers to TOU rates and they now make you opt out if you want to change. Also, why do they force all new solar customers to TOU if it wasn't more profitable for them?
I believe that it is a statewide mandate, with the goal to better align demand with renewable availability.
www.utilitydive.com
"California Time-of-Use (TOU) Transition: Effects on Distributed Wind and Solar Economic Potential"
All the best,
BG
California utilities prep nation's biggest time-of-use rate rollout
Over 300 time-varying rates in 62 pilots have shown consumers can "understand and respond," but California’s three IOUs are dealing with more than 20 million people.
All the best,
BG
I would be interested in hearing from others about whether "TOU" actually has a large effect on their use.I believe that it is a statewide mandate, with the goal to better align demand with renewable availability.
"California Time-of-Use (TOU) Transition: Effects on Distributed Wind and Solar Economic Potential"California utilities prep nation's biggest time-of-use rate rollout
Over 300 time-varying rates in 62 pilots have shown consumers can "understand and respond," but California’s three IOUs are dealing with more than 20 million people.
All the best,
BG
Prior to getting panels and powerwalls, I had no idea how much electricity I was specifically using on an hour by hour basis.
But mainly, how are normal people, rich or poor (ha!) expected to vary their use? Its not like everyone can quit work and use electricity during the day.
Most people use electricity at night in California in the hot months due to air conditioning. I mean, TOU doesn't change that.
In N.Cal, we only need A/C 10-15 days each year. With the TOU rate, we run the A/C after midnight (off-peak) to pull the inside temperature down to 69° (good for sleeping) and then let the inside temperature rise during the day with the windows closed until the inside and outside temperatures are equal in the late afternoon or evening. Then we open all the windows to let out as much heat as we can using a whole-house fan until we go to bed and repeat the cycle. This works for us because we are retired and often at home.
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