NEM Sucessor Tariff *Proposed* Decision relased by the CPUC

[J.P.M.]

How can you apply logic and reason to anything said by a Utility company?
The CEO wants a bigger bonus that goes along with bigger profits and doesn't care if he/she screws a million people to get it.
It really is that simple.

In technical matters, I rely on some personal knowledge and experience to usually understand and make sense of what they say they're doing and why.

For commercial/financial matters my believability works something like this: It's just business. Stockholders expect a return on investment. Reality tells me ethics are referenced to a $ sign. Period. I don't take what POCO's or anyone else says at face value without verification as best as possible.

In the verification attempt, I noticed what I see as a possible logical inconsistency as described.

BTW: My comment was not directed solely at utility companies, but includes those with an all/nothing and usually knee jerk and usually ill-informed erection for R.E. who do little more than repeat what they've seen, heard and learned to regurgitate without thinking.

My comments are not directed at those informed parties who do not fit that dumbass description.

[sensij]

A revision to the proposed decision has been released ahead of the vote scheduled for tomorrow (redline copy here to see the changes). Among other changes, it offers clarification of the non-bypassable charges that will get imposed, and tweaks the terms under which net metering customers must choose TOU. However, it still looks very favorable for the solar industry.

The IOU's had finally teamed up and presented a joint proposal in response to the proposed decision in which they were willing to just settle for a negotiated feed-in tariff on energy fed into the grid... if they had made such a reasonable proposal to begin with, I think this could have gone differently. As it is, it looks like they overreached and are paying the price for that.

[Yaryman]

So having read a few stories just now, it seems like the vote will happen today and we will find out the new rules today?
Also if my reading and comprehension skills are adequate, this will happen all over again in 2019?

[J.P.M.]

Early read looks like no real surprises from what was anticipated at this time. A couple of things I picked up: Compensation for overgeneration looks like it stays as before, and tweaks for T.O.U. not bad, with tiered rates mostly staying available for some time like 5 years.

[Yaryman]

From the LA Times story about the decision today.

"Existing owners are exempted from all the changes for 20 years from when they installed their solar systems and connected to the grid."

I'm a PG&E customer signed up under E-6, and was under the impression that E-6 would expire in 5 years as had the other solar pricing systems PG&E had used.

http://www.latimes.com/business/la-f...128-story.html

[sensij]

The net metering tariff (retail credit for energy fed into the grid) is what is protected for 20 years. The specific TOU rate plan under which you take service has generally been getting 5 years of runway after it is discontinued to new customers, and this proposed decision codifies that.

[J.P.M.]

From the LA Times story about the decision today.

"Existing owners are exempted from all the changes for 20 years from when they installed their solar systems and connected to the grid."

I'm a PG&E customer signed up under E-6, and was under the impression that E-6 would expire in 5 years as had the other solar pricing systems PG&E had used.

http://www.latimes.com/business/la-f...128-story.html

Some examination of the final ruling by more than a few sets of eyes will be necessary to get it all straight. For example, I believe limiting eligibility to stay on tiered rates for 5 years involves a change for at least some PV system owners. I usually don't believe everything I read.

[tru2logan]

So I literally just signed my solar contract this morning. Does this mean I am going to be forced to use a TOU plan instead of tiers plans?

[sensij]

So I literally just signed my solar contract this morning. Does this mean I am going to be forced to use a TOU plan instead of tiers plans?

Not necessarily. The new NEM tariff only applies if you are a customer of SDG&E, SCE, or PG&E, and that utility has exceeded their NEM 1.0 allocation. SDG&E is on track to hit it before summer, PG&E might hit the deadline late this year or early next year, and SCE won't hit the cap and instead the transition date is 7/1/2017. As long as your system is running before the cap or deadline, you will be under NEM 1.0.

[Willaby]

The net metering tariff (retail credit for energy fed into the grid) is what is protected for 20 years.

Plus the annual true-up protected for 20 years. I'm nowhere near as current on NEM status as you are (locked in so I'm less interested), but I would have thought the Utilities would have attacked the annual true-up in favor of monthly. Probably too soon for them to try and I guess the new 2c kwh chips away at it in a way since most solar will under produce all or some of time during the year and the 2c will be forced. For me, I would come up short in winter by up to 150kwh/month, so I would hope credits or the $10 maximum would still apply? Not that $3/month is much, but I doubt it will stay at 2c forever. Hoping I am understanding this right?

Always love those quotes "utilities have decried the plan as unfair to non-solar customers". Uh, yeah, those utilities are really about looking out for them.

[Yaryman]

Always love those quotes "utilities have decried the plan as unfair to non-solar customers". Uh, yeah, those utilities are really about looking out for them.

Every time a Utility says that, they should be fined. And no, I'm not kidding.

[rwb1921]

I found this - this will affect all users I am guessing? We can stay on tiered rates only for 5 years in SDGE area starting 2017?
Does this apply to NEM 1.0 users? Or this is just the NEM 2.0 users? Cannot tell from articles.

BREAKING: California regulators preserve retail rate net metering in 3-2 vote

Another modification was making time-of-use (TOU) rates mandatory for all rooftop solar users in the Pacific Gas & Electric and Southern California Edison territories, instead of phasing them in for new users only.

However, solar owners in SDG&E's service territory will be allowed to remain on the utilities' tiered rate structure for five years after the new TOU rates, which will ultimately be mandatory by 2019, are approved in 2017, PV Magazine reports.

http://www.utilitydive.com/news/brea...3-2-vo/412930/

[SunEagle]

......

Always love those quotes "utilities have decried the plan as unfair to non-solar customers". Uh, yeah, those utilities are really about looking out for them.

Actually in a way the utilities are looking out for their non solar customers. Granted they are first looking out for themselves but If they can show a need to raise the rates to the PUC, because of lower income due to a large percentage of solar customers, they may be granted a hike in fees to cover those "costs". In the end everyone (non-solar & solar) will pay more.

If they continue to get the income that "their business plan" determined is right to stay profitable there is less of reason to be granted higher charge rates by the PUC.

Not the best world but IMO no different then having to pay a higher car or home insurance fee due to the increase of fraud and lower profits for those companies.

[Willaby]

Every time a Utility says that, they should be fined. And no, I'm not kidding.

One could say that all businesses are out to maximize revenues and correspondingly (usually) profits from their clients/customers, but the Utilities generally have the system gamed in their favor with the CPUC. Interesting that a small company I consult to was invited to Facebook in December for something of a workshop (paid for, invitation only) whereby they were told they were spending far too much on Facebook, and metrics showed they needed to reduce by 30%. Love or hate FB, but I've never quite seen that before. I still think FB is out to maximize, but they truly have a long term horizon consistent with trust and loyalty.

[rwb1921]

My post earlier about TOU rates, this may clarify but not sure:

Another modification was making time-of-use (TOU) rates mandatory for all rooftop solar users in the Pacific Gas & Electric and Southern California Edison territories, instead of phasing them in for new users only.

However, solar owners in SDG&E's service territory will be allowed to remain on the utilities' tiered rate structure for five years after the new TOU rates, which will ultimately be mandatory by 2019, are approved in 2017, PV Magazine reports.

–Requires residential NEM 2.0 customers to be on time-of-use rates.

The changes included in NEM 2.0 do not affect customers who already have solar or who install solar before utilities meet certain thresholds. CALSEIA estimates these thresholds will be met in April 2016 for San Diego Gas & Electric, August 2016 for Pacific Gas & Electric, and early 2017 for Southern California Edison.

So if we are on NEM 1.0, we can keep our tiered rates? No restrictions? Anyone know?

Seems to me all customers whether 1.0 or 2.0 would be moved to TOU rates the way it reads above though.

Thanks.