Tag Archives: Solar energy

California Public Utilities Commission approves nearly 100% increase in exit fees for CCA customers

Repost from the San Francisco Chronicle
[IMPORTANT INFORMATION: CLICK HERE – The “Power Charge Indifference Adjustment” (PCIA) and its impacts on customers who are served by alternative green energy companies (CCAs).  Unfortunately, the approved increase is not for a one-time fee, but rather a monthly fee that is tied to the usage on each electric account. It is charged on a kWh basis for all customers using CCA service.
Other proposed ongoing and monthly PGE penalties for solar customers were “proposed for rejection” by the Public Utilities Commission.  Stay tuned for their vote on January 28!  See also the Chronicle’s editorial on this, State regulators help advance rooftop solar.  – RS]

Customers of clean energy programs hit with fee increase

By Lizzie Johnson, December 17, 2015 7:53pm
PG&E and other big utilities also proposed cutting the amount of compensation that solar homeowners receive for excess electricity that they export to the grid. Photo: Lacy Atkins, SFC
PG&E and other big utilities also proposed cutting the amount of compensation that solar homeowners receive for excess electricity that they export to the grid. Photo: Lacy Atkins, SFC

The California Public Utilities Commission voted Thursday to allow a nearly 100 percent price increase on exit fees for customers leaving Pacific Gas and Electric Co. for green energy programs like CleanPowerSF and Marin Clean Energy, which will make those and similar programs more expensive.

Many of the programs — where local governments buy green electricity for their residents, while private utilities own and operate the electrical grid — will be undermined financially by the uptick in the charge, called the Power Charge Indifference Adjustment, their officials say.

“We are not surprised that the increase was approved,” said Marin Clean Energy spokeswoman Alexandra McCroskey. “We are disappointed. Our primary frustrations come from the fact that we are becoming almost liable for the market fluctuations for both ourselves and PG&E. If PG&E isn’t planning appropriately for people leaving for community choice aggregation programs, the PCIA will continue to increase. It’s poor planning.”

Under the increase, which is effective Jan. 1, customers making the switch to local green energy programs will face a heftier exit fee. Marin Clean Energy customers are projected to pay more than $36 million, up from $19.3 million in 2015. The cost for each residential customer would nearly double from about $6.70 each month to $13.

In San Francisco, the proposed exit fee for residents moving to CleanPowerSF would jump by 100.26 percent. Because the city energy program is designed to absorb costs for its customers, it would decrease the program’s revenue by $8.4 million.

Win for consumers

This month, PG&E and other big utilities also proposed cutting the amount of compensation that solar homeowners receive for excess electricity that they export to the grid, in addition to adding new monthly fees targeting solar homeowners. The CPUC released a proposed decision on the matter this week rejecting the fees. A vote is scheduled for January.

“Overall, we didn’t convince three commissioners to rule our way on the PCIA,” said Barbara Hale, assistant general manager for power at the San Francisco Public Utilities Commission. “The fee is going to double, and that’s tough for us. But we are marching forward with our CleanPowerSF program, which will launch this spring. We are still moving forward.”

Hundreds of protesters came from as far as San Diego to oppose the fee increase at Thursday’s meeting in San Francisco. They carried homemade signs reading “Stand Up to Natural Gas!” and “CPUC: Consumers Pay Again?!” Public comment on the change stretched for more than two hours.

“We’ve achieved a great deal, but there is this overhang of costs that were necessary to kick-start the industry,” said CPUC Commissioner Mike Florio. “The reason the PCIA is so high is because of high-cost renewable contracts that PG&E was required by law to enter into, and that this commission approved. I don’t think it’s fair to let one group of customers escape from paying those historic costs and simply load those on the remaining customers. That’s what the PCIA is all about.”

Charge required by law

PG&E originally filed an application to raise the fee by 70 percent in June, but submitted another request last month to as much as double it. The fee helps the power company pay for energy it contracted for when it had more customers, preventing remaining patrons from bearing the brunt of the costs. The charge is required by law and determined by a formula implemented by the CPUC in 2011.

The fee is influenced by several market factors, including the price of energy, which fluctuates from year to year, said David Rubin, PG&E’s director of service analysis. The cost of power is now cheaper, meaning the difference between what PG&E paid for in its contracts and the price today is higher.

“The PCIA is going up because it is based very specifically on the difference between the cost of supplies in our portfolio which are based on contracts we signed several years ago when renewable prices were higher,” Rubin said. “If dynamics were different, the PCIA would go down.”

Process has critics

PG&E performs the calculation annually and submits the annual filing to the commission for approval. But to calculate the fee increase, some of the inputs must include confidential contract information. Critics say the numbers going into this ‘black box’ prevent outsiders from replicating the formula, and that the increase is another attempt by PG&E to undermine fledgling green energy programs, like Peninsula Clean Energy, which will provide electricity in San Mateo County beginning in August.

“The fee is almost completely redacted,” said Francesca Vietor, president of the San Francisco PUC. “It is extremely difficult for us to know what an affordable rate for our program is when we don’t have a transparent process.”

The CPUC also ordered in its decision that a workshop be held on Feb. 16 to address the methodologies and inputs used for calculating the PCIA charge.

“One day you’re a hero, the next day you’re a goat,” CPUC President Michael Picker said. “We are in the nature of balancing decisions. But we will continue to scrutinize the PCIA formula and balance different interests equally.”

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    Federal spending deal falls short on environment

    Repost from the San Francisco Chronicle

    Spending deal falls short on environment

    By Annie Notthoff, December 17, 2015  |  Annie Notthoff is director of the Natural Resources Defense Council’s California advocacy program.
    Senate Majority Leader Mitch McConnell Photo: J. Scott Applewhite, Associated Press
    Senate Majority Leader Mitch McConnell Photo: J. Scott Applewhite, Associated Press

    The spending and tax policy agreement Congress and the White House have reached to keep the government funded and running includes important wins for health and the environment.

    But there’s good news to report, only because of the Herculean efforts of House Minority Leader Nancy Pelosi, D-San Francisco, Senate Minority Leader Harry Reid, D-Nev., and the White House, who worked tirelessly to block nearly all of the dozens and dozens of proposals Republican leaders were pushing.

    Those proposals would have blocked action on climate, clean air, clean water, land preservation and wildlife protection and stripped key programs of needed resources. The Republican leaders’ proposals were the clearest expression yet of their “just say no” approach to environmental policy. They literally have no plan, except to block every movement forward on problems that threaten our health and our planet.

    The worst aspect of the budget agreement is another clear indication of Republican leaders’ misplaced priorities — they exacted an end to the decades-long ban on sending U.S. crude oil overseas in this bill, in return for giving up on key elements of their antienvironment agenda.

    Senate Majority Leader Mitch McConnell, R-Ky., made that give-away to the oil industry one of his top priorities. It will mean increased oil drilling in the U.S., with all the attendant dangers, with the benefits going to oil companies and overseas purchasers. That won’t help the American public, or the climate. It’s simply an undeserved gift to Big Oil.

    In good news, the agreement extends tax credits for wind and solar energy for five years, which will give those industries long-sought certainty about their financing.

    Wind and solar will continue to grow by leaps and bounds, helping domestic industry, reducing carbon pollution and making the U.S. less vulnerable to the ups and downs of fossil fuel prices.

    Democratic leaders deserve all our thanks for what they were able to keep out of the budget deal. Gone are the vast majority of obstacles Republican leaders tried to throw in the way of environmental protection. Recall for a moment the 100 or more antienvironmental provisions Republican leaders tried to attach to these spending bills. Those included efforts to:

    • Block the Environmental Protection Agency’s Clean Power Plan, which sets the first-ever limits on carbon pollution from power plants — our best available tool to combat dangerous climate change.

    • Roll back the Obama Administration’s Clean Water Rule, which would restore protections for the potential drinking water supplies of 1 in 3 Americans.

    • Repeal the EPA’s newly issued health standards to protect us from smog.

    • Bar the Interior Department from protecting our streams from the pollution generated by mountaintop removal during coal mining.

    • Strip Endangered Species Act protections for gray wolves, the greater sage grouse, elephants, the Sonoran Desert tortoise, and other threatened animals.

    • Force approval of the proposed Keystone XL tar sands oil pipeline, which President Obama already has rejected.

    There’s more work ahead to protect the environment, starting with eliminating the threat of oil drilling in the Arctic and off the Atlantic Coast.

    But despite the efforts of Republican congressional leaders to hold the public hostage and bring us to the brink of another government shutdown, a budget deal has emerged that protects environmental progress.

     

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      NRDC: Paris Climate Agreement Explained

      Repost from the Natural Resources Defense Council

      Paris Climate Agreement Explained

      By Susan Casey-Lefkowitz, Director of Programs with Emily Cousins, December 12, 2015
      Credit: Shun Kambe

      How we’ll deliver on the promise of ambitious climate action.
      The global community signed an historic agreement today at the Paris climate talks to tackle the threat of climate change and accelerate the shift to clean energy around the world. This is a momentous breakthrough. Nearly 200 countries have pledged to reduce their climate change pollution, strengthen their climate commitments every five years, protect people living on the front lines of climate impacts, and help developing nations expand their clean energy economies.

      Most important, this agreement sets ambitious goals. It calls for holding global temperature rise to 1.5 degrees Celsius, with a first step of keeping us at no more than 2 degrees of warming.

      Reaching the 2-degree target is essential to prevent catastrophic climate impacts, but scientists say it still leaves us open to dangerous levels of rising seas, food insecurity, and extreme drought. It would make the Marshall Islands and other island nations uninhabitable and expose countless vulnerable communities to deadly harm. Keeping the temperature rise at no more than 1.5 degrees will sustain these communities and create a brighter, more stable future for our children and grandchildren.

      This is an ambitious goal, but the past two weeks in Paris confirm it is achievable.

      In Paris, an action agenda emerged out of a groundswell of climate action from cities, regions, businesses, investors, trade unions, and many others. Mayors and governors described what they are already doing to reduce carbon pollution and how they plan to do more. Multinational corporations said they are cutting carbon pollution across their operations. Financial institutions reported that renewable energy is a better investment than fossil fuels. Leaders from developing nations explained that clean energy is helping to generate economic growth and bring people out of poverty. And thousands of people from all over the world stood up for climate action. This groundswell has the backs of our national leaders in implementing ambitious climate policies. This is what climate leadership looks like.

      The low-carbon transition is already underway. Now the Paris agreement calls on us to return home, pick up the pace, and go faster into the clean energy future. And it gives us the tools to hold our government leaders accountable.

      In China, that means building on the country’s commitment to implement a cap-and-trade program and increase non-fossil-fuel energy sources to 20 percent of total energy by 2030. In India, that means leapfrogging over dirty fossil fuels and using clean, renewable, and efficient energy to power its growth. Meeting the country’s solar mission alone will create 1 million jobs. India has already vowed to increase renewable energy sixfold by 2020 and to set mandatory efficiency standards for buildings by 2017.

      The United States can also build on existing progress. All 50 states are on track to implement the Clean Power Plan for limiting carbon pollution from power plants; they need to focus on doing this through energy efficiency and an increase in wind and solar. We can continue to improve fuel efficiency standards and move to a combination of electric vehicles and smarter growth in transportation. Next up, we’ll work on getting existing oil and gas facilities to reduce their methane emissions and on the phase-out of fossil fuel development on federal lands and in federal waters. And U.S. businesses should continue not only to improve their own energy efficiency but to band together to advocate for stronger clean energy and climate policies.

      This work won’t be easy. The Paris agreement — and our obligation to future generations — demands that nations transform how we think about electricity, transportation, industry, methane from fracking, HFCs from air conditioning, agriculture, and other contributors to climate change. It also requires helping developing countries face the challenges of poverty alleviation, energy equity, and climate justice. And here in the United States, it entails going up against entrenched fossil fuel interests and those politicians who persist in denying climate change.

      These are significant hurdles, but citizens, businesses, and political leaders around the globe have made it clear that we support strong climate action. This momentum will carry us forward. And the Paris climate agreement and action agenda will provide the road map.

      Irina Bokova, the director-general of UNESCO, said at an NRDC event last week, “When we speak about climate, we speak about humanity.” Our future is at stake here. For the human community to thrive, we need a stable climate. The Paris agreement and commitments will help ensure that our families, nations, and societies can flourish for generations to come.

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