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
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.”