California Time of Use (TOU) Rate Structure Change

Each of California’s largest utilities has proposed shifting the timing of peak rates later in the day in time-of-use (TOU) rate structure. Pacific Gas & Electric (PG&E) has already shifted TOU peak for residential customers and there are proposed settlements for commercial customers. Southern California Edison (SCE) has proposed to shift peak for all customers, and a proposed decision that is pending at the CPUC would approve that. San Diego Gas & Electric (SDG&E) shifted peak hours last December for both residential and commercial customers.

Although some of these decisions are still pending, it would be best to assume that peak hours will shift to 4-9 pm for all customers. Outside of peak, there will certainly be some differences in structure for non-peak hours

 

SOUTHERN CALIFORNIA EDISON

STATUS: Proposed decision pending for TOU periods; early in the rate case for final rate design

DECISION TIMING: TOU periods decided in June 2018; final rate design decided in December 2018

IMPLEMENTATION TIMING: March 2019

Currently commercial and agriculture customers have a summer peak period of 12-6 pm.

SCE has proposed to change the peak period for all customers to 4-9 pm. A proposed decision issued May 22 would approve the proposed TOU periods, and is slated for a final vote on June 21. That rate case is only deciding the TOU periods and not the rate differentials between the periods, so it will not lead to new rates. Actual rates will be determined in a new General Rate Case.

SCE Proposed TOU Periods

Summer (June-Sept) On-Peak 4 pm – 9 pm, weekdays
Mid-Peak 4 pm – 9 pm, weekends
Off-Peak All other hours
Winter Mid-Peak 4 pm – 9 pm, all days
Off-Peak 9 pm – 8 am, all days
Super Off-Peak 8 am – 4 pm, all days

SCE makes the following proposals:

  • For commercial customers:
    • Close Option R and Option A and replace both of them with a new Option E.
    • Close Option B and replace it with a new Option D.

SCE Proposed Commercial Rates Under New TOU Periods

GS-2-D

GS-2-E

GS-3-D

GS-3-E

TOU-8-D

TOU-8-E

Fixed Charge ($/mo)

110.25

110.25

266.50

266.50

400.50

400.50

Summer(Cent/kWh) On-Peak

12.155

39.580

12.022

38.933

11.549

35.962

Off-Peak

11.477

14.222

11.344

14.065

10.882

13.315

Super Off-Peak

7.142

7.645

6.976

7.433

6.769

7.159

Winter(Cent/kWh) On-Peak

10.498

18.099

10.370

17.568

9.996

16.782

Off-Peak

7.490

7.993

7.314

7.780

7.116

7.506

Super Off-Peak

5.558

5.661

5.410

5.509

5.274

5.364

Demand Charges($/kW) Maximum

13.28

11.81

13.99

12.36

14.12

12.48

Peak Summer

18.46

20.30

20.55

Peak Winter

3.61

3.74

4.03

You can reach the SCE proporal here

PACIFIC GAS & ELECTRIC

STATUS: Uncontested settlements pending CPUC approval

DECISION TIMING: August 2018

IMPLEMENTATION TIMING: November 2020

In its 2017 rate case, PG&E proposed to shift peak for commercial customers to 5-10 pm but reached settlement agreements with intervenors for a 4-9 pm peak. The TOU periods and rates from those settlements are below and summarized in this spreadsheet. Full details are in the source documents: large commercial settlementsmall commercial settlementresidential settlementagricultural settlement, and settlement on grandfathered rates for solar customers.

These settlement agreements will not get formal approval from the CPUC until August, but because they are uncontested settlements they are virtually assured of being approved with only minor changes. You should use these rates for your modeling and inform customers that these are the rates that will go into effect soon. Based on the reactions of the administrative law judges, it appears that if they make any changes they would only be helpful to customers with solar and/or storage by shifting some demand charges from 24-hour maximum demand to maximum demand within the peak TOU period.

These rates will be available optionally in October 2019 and will be mandatory in November 2020. This means customers will stay on current TOU periods and rates until November 2020. If they have storage and want to shift to evening peaking TOU earlier, they can switch beginning in October 2019.

PG&E TOU Time Periods

Summer (June-Sept) Peak 4 pm – 9 pm every day
Partial Peak 2 pm – 4 pm; 9 pm – 11 pm, every day
Off-Peak All other hours
Winter   (Oct-May) Part-Peak 4 pm – 9 pm every day
Off-Peak All other hours
Super Off-Peak 9 am – 2 pm, March-May, all days of week

SAN DIEGO GAS & ELECTRIC

The CPUC approved new TOU rate structure for SDG&E with Decision 17-08-030 in August 2017. The new peak hours are 4-9 pm, every day of the year. SDG&E has also shifted to a five-month summer, with May becoming a winter month.

New TOU Periods for SDG&E

Summer (Jun-Oct) On-Peak 4 pm – 9 pm, all days
Off-Peak All other hours
Super Off-Peak 12 am – 6 am weekdays; 12 am – 2 pm weekends
Winter On-Peak 4 pm – 9 pm, all days
Off-Peak All other hours
Super Off-Peak 12 am – 6 am weekdays; 12 am – 2 pm weekends; plus 10 am – 2 pm on weekdays during Mar-Apr

This new rate structure was implemented on December 1. However, on November 22, the California Solar & Storage Association submitted a protest of the rate values for the grandfathered versions of DG-R and DR-SES. It is uncertain whether the CPUC will require SDG&E to correct those rates.

New Rates

DR-SES

TOU-DR

EV-TOU2

TOU-A

AL-TOU

DG-R

Summer (Jun-Oct)

(Cent/kWh)

On-Peak

54.297

32.817

54.297

39.362

13.376

52.415

Off-Peak

27.978

26.769

27.977

11.152

21.127

Super Off-Peak

21.905

20.78

21.903

27.055

8.786

15.051

Above Baseline Adder

20.159

Winter (Nov-May)

(Cent/kWh)

On-Peak

23.992

23.669

23.992

22.357

11.668

28.340

Off-Peak

23.046

22.728

23.045

10.360

10.924

Super Off-Peak

21.995

21.684

21.994

20.810

8.910

9.762

Above Baseline Adder

17.090

Demand Charges

($/kW)

Maximum

20.49

12.10

Peak Summer

26.65

2.57

Peak Winter

15.78

0.53

TOU structure change can affect your utility bill dramaticly. We work with our commercial customers to model their 2019-2020 bills. You can reach us here to get your free solar evaluation