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CPUC NEM 3.0 discussion

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Well, PDF page 224 does say that for PG&E the only rate schedule applicable for Net Billing will be E-ELEC, which isn't currently listed at Tariffs so who knows if it will include a $15/month monthly fee.

Cheers, Wayne
I saw that and thought it might just be a place holder, but PG&E has actually proposed this a couple of times to the CPUC for "electrification" households, which are ones that have converted to electric heat pumps for water or climate control and the NEM 3.0 proposal has many occurrences of "promote electrification" and "electrification retail rate", so we will need to wait and see what happens here.

In its 2020 GRC Phase II proceeding, PG&E proposed a new pro-electrification time-of-use rate with a fixed charge, Electric Schedule E-ELEC, that would be available to residential customers with any of the following technologies: (1) electric vehicles; (2) energy storage (e.g., batteries); or (3) electric heat pumps for water heating or climate control (space heating and/or cooling).
PG&E’s E-ELEC rate, with its $15 fixed charge, is the most similar to SMUD’s default residential rate.
 
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Though it's rare, if you export more electricity than you import in a 12-month period, you will be paid “net surplus compensation” of a few cents per excess kilowatt-hour. Because this rate is so low, it is generally not in your financial interest to install a solar system that produces much more energy than you use.

Yep, I am one of those rare, dumb birds. :)
But at least you got your batteries at a low price.
 
SCE's TOU-PRIME tariff has a 46¢/day or about $14.26/month minimum charge. Although NEM 3.0 itself doesn't include a minimum charge, the otherwise applicable rates do, and that is why it may have been shown in the example.
I would take "fixed charge" to be different from a "minimum charge". The former being on top of any usage charges, the latter meaning "round up if your usage charges are too low".

Anyone notice where the proposal specifies whether minimum charges, fixed charges, or even NBCs can be offset by the export credits under "Net Billing"? Also whether the rules handling having a net credit at true-up are proposed to change?

Cheers, Wayne
 
I would take "fixed charge" to be different from a "minimum charge". The former being on top of any usage charges, the latter meaning "round up if your usage charges are too low".

Anyone notice where the proposal specifies whether minimum charges, fixed charges, or even NBCs can be offset by the export credits under "Net Billing"? Also whether the rules handling having a net credit at true-up are proposed to change?

Cheers, Wayne
SCE calls it a Basic Charge, and it can't be offset by usage or export credit.

I did see that the ACC Plus adder could offset some NBCs.
 
I would take "fixed charge" to be different from a "minimum charge". The former being on top of any usage charges, the latter meaning "round up if your usage charges are too low".

Anyone notice where the proposal specifies whether minimum charges, fixed charges, or even NBCs can be offset by the export credits under "Net Billing"? Also whether the rules handling having a net credit at true-up are proposed to change?

Cheers, Wayne
In Section 8.4.7 Minimum Bill (page 125) it says "This decision declines to establish a minimum bill requirement as part of the successor tariff. This decision clarifies that certain rate schedules for which successor tariff customers are eligible may require a minimum bill." One of the PG&E E-ELEC tariff proposals mentioned a $15/month charge and @power.saver mentioned that the SCE TOU-PRIME has a $0.46/day minimum.

The PG&E and SCE credits from ACC Plus are the only thing that I could find that would offset NBCs and I'm surprised that even those would apply as NBCs should be NBCs.
 
So the CPUC says…

For the sake of transparency and due process, the breadth of the changes necessitates a new proposed decision with a 30-day public comment period, pursuant to Public Utilities Code Section 311.

Is this new PD coolio?
I would prefer to see the export credit be tied to the TOU generation rate versus the vaguely defined export credit that is variable depending on the hour and will be much lower during most of the day except for the two peak hours, but I think this is far better than the December 2021 version.

Edit: I would also like more clarification on the new "electrification tariff" and the need for a $15 monthly fee to administer net billing.
 
Yes, and that's a radical change from the prior PD. Still reading through all the details, but some highlights:

  • No early end to NEM 1.0 and 2.0 contract terms
  • No Grid Benefits Charge
  • Annual True-Up with offset from any TOU period
  • ACC with adder for export credits

They wouldn't have had half of the push back if they would have been smart and let the 1 & 2 contracts get fulfilled as per the expectations.
 
It isn't clear if the $15 is a replacement for MDCs or in addition. That would be the tariff details which don't seem to be available.
Until new rates are made for everyone which will have a fixed rate component and a lower volumetric rate the E-ELEC rate will be used for new solar customers. The E-ELEC rate should become effective in December for non-solar customers and everyone next year. Basically EV2 with $15 monthly fee and lower winter rates.

Fixed Charge ($ per meter per day) $0.49281
PEAK PART-PEAK OFF-PEAK
Summer $0.52942 $0.36754 $0.31086
Winter $0.29416 $0.27207 $0.25821​


 
Though it's rare, if you export more electricity than you import in a 12-month period, you will be paid “net surplus compensation” of a few cents per excess kilowatt-hour. Because this rate is so low, it is generally not in your financial interest to install a solar system that produces much more energy than you use.

Yep, I am one of those rare, dumb birds. :)
Net surplus is much worse in NBT (NEM 3.0) because they reduce your regular TOU export compensation by the kWh of surplus. Basically, you will only get the net surplus compensation on any excess exports. You really don't want to be a net exporter. Proposed text below.

During a customer’s 12-month annual true-up in the successor tariff, the utility shall determine if the customer’s net exports are positive, i.e., the customer exported more electricity than they imported over the past 12-month period. If the net exports are positive, that quantity of kilowatt hours will be debited from the customer’s account at a rate equal to the utility’s average real-world retail export compensation rates for all Net Billing tariff customers in their service territory over the past 12 months. The customer will then be credited at the Net Surplus Compensation rate for the same number of kilowatt hours.
 
It isn't clear if the $15 is a replacement for MDCs or in addition. That would be the tariff details which don't seem to be available.
"Electric Schedule E-ELEC, that would be available to residential customers with any of the following technologies: (1) electric vehicles; (2) energy storage (e.g., batteries); or (3) electric heat pumps for water heating or climate control (space heating and/or cooling)."

Would E-ELEC be voluntary or mandatory for solar customers? If mandatory for solar customers what about people with heat pumps? Is there something in the rate schedule that makes it desirable?
 
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"Electric Schedule E-ELEC, that would be available to residential customers with any of the following technologies: (1) electric vehicles; (2) energy storage (e.g., batteries); or (3) electric heat pumps for water heating or climate control (space heating and/or cooling)."

Would E-ELEC be voluntary or mandatory for solar customers? If mandatory for solar customers what about people with heat pumps? Is there something in the rate schedule that makes it desirable?
Mandatory for solar with NBT. Optional for others with the listed technologies. Really not desirable without storage batteries.
 
So, in certain circumstances if you do mostly/all self-consumption, you may be better off if you don't do net billing. Would that be allowed? I.e., not export or waive compensation for exports to waive the $15/month fee?
No. If you're interconnected, then you must be on NBT. That's really no change from today, except there is only one rate you can be on.