CA state mandated rate restructure July 2024

[CharlieEscCA]

One of the better write ups in terms of explaining this is here: https://timesofsandiego.com/business...lat-rate-plan/

For those of us where solar covers near or all of our yearly usage after NEM credits, the flat fee portion of these changes will definitely increase one's annual costs.

And there's little doubt the the "equity" aspect is in play here as discussed here: https://californiaglobe.com/articles...gy-transition/

[J.P.M.]

One of the better write ups in terms of explaining this is here: https://timesofsandiego.com/business...lat-rate-plan/

For those of us where solar covers near or all of our yearly usage after NEM credits, the flat fee portion of these changes will definitely increase one's annual costs.

And there's little doubt the the "equity" aspect is in play here as discussed here: https://californiaglobe.com/articles...gy-transition/

Thank you.

Looks like maybe a bit of a reconning day for excess generators too.

I'd respectfully remind readers that bill 205, like most bills, will most likely take some time and several iterations and changes before a final version is submitted to a vote.

I wouldn't panic or proclaim salvation just yet, but if I read the writing on the wall correctly, the time for some of the free ride for NEM customers in CA may be nigh onto over.

I'm getting the popcorn ready to watch the comments and the show.

[J.P.M.]

One of the better write ups in terms of explaining this is here: https://timesofsandiego.com/business...lat-rate-plan/

For those of us where solar covers near or all of our yearly usage after NEM credits, the flat fee portion of these changes will definitely increase one's annual costs.

And there's little doubt the the "equity" aspect is in play here as discussed here: https://californiaglobe.com/articles...gy-transition/

And, further to that, given that most SDG & E customers use WAY more than the 400 kWh/mo. At a more likely 1,000 kWh/mo., and using the article's rates, their savings under the proposed rates might be quite a bit.

At 1,000 kWh/mo., and simple math for middle income user (however that will be determined):

Old bill: $473/mo.
New bill: $73/mo. + (1,000 kWh*$0.27/kWh) = $73 + $270 = $343/mo.

Selling the save story might make for less headwind for the POCOs with the non-NEM customers.

[Ampster]

..........
I'd respectfully remind readers that bill 205, like most bills, will most likely take some time and several iterations and changes before a final version is submitted to a vote.

............
I'm getting the popcorn ready to watch the comments and the show.

The govorner signed the bill in 2022. The details will be ironed out in CPUC hearings over the next year.. I agree there may be several interations and changes to the proposals in front of the CPUC. I have already enjoyed a bag of popcorn listening to all the people that don't know the bill was passed in mid 2022.

[J.P.M.]

The governor signed the bill in 2022.The details will be ironed out in CPUC hearings.

Yes. 06/30/2022 as can anyone with one eye and one balloon knot and the ability to read quickly determine.
Thank you for filling all of us in on the obvious.

As you seem to be writing, after all the wrangling/hearings/shenanigans by interested parties the CPUC members will then vote on the way the particulars of the bill are to be implemented.
Then the CPUC approves/denies (by a vote) the POCO's rates/methods that reflect how the POCO's propose to implement the CPUC's voted on decision.
Those are the votes that count for rate payers.
At least that's the way I understand how the game is run.

[solardreamer]

Sure looks like POCO's are out to kill rooftop solar.

[J.P.M.]

Sure looks like POCO's are out to kill rooftop solar.

Why would they not be and when haven't they been ?
They all got NEM more/less crammed down their throats many years ago and have been fighting it ever since.
I'm one of the biggest fans of alternate energy I know of, but the reality is subsidizing well off ratepayers is contrary to their business model and it's all just about business.

[SunEagle]

Sure looks like POCO's are out to kill rooftop solar.

Are you just realizing that now. The POCO's are a business and will only do well if their money supporters make more then what they have invested.

[solardreamer]

I meant to say it looks like POCO's in CA will finally actually kill rooftop solar with NEM3 and fixed fees after trying for years.

[SunEagle]

I meant to say it looks like POCO's in CA will finally actually kill rooftop solar with NEM3 and fixed fees after trying for years.

I guess it took them to a point of when their losses really hurt them so now they are trying to get even or some of the money they think they deserve back

[J.P.M.]

I guess it took them to a point of when their losses really hurt them so now they are trying to get even or some of the money they think they deserve back

My guess is that that the losses are not that much worse for the POCOs than they've ever been but since PV is more cost effective due to decreased costs and commoditization of PV, they needed to do some things to decrease the incentive for their more well off customers away from installing ever more PV as well as regain some of the revenue from existing PV customers. Simple analysis of the early SDG & E proposals looks like a lot of middle and lower income residential users may actually see noticeably lower bills from the combination of a new monthly income charge and the $0.20/kWh or so decrease in the per kWh rate. Depending on how the POCOs sell that to the public may mean a lot less headwind for such proposals.

[Ampster]

I guess it took them to a point of when their losses really hurt them so now they are trying to get even or some of the money they think they deserve back

Aside from losses due to liabilities for causing fires from downed power lines, I think the Iinvestor Owned Utilities have been getting the gaeranteed return on operations that the CPUC has always alowed them and I am not aware of any losses from operations. . What they think they deserve is that garanteed rate of return that the CPUC has always given them. I have never thought that government run entities could be more efficient than privatre investor companies but in California the municipal utilites have less expensive rates than the IOUs. It is also interesting that the municipal utilities are also not regulated by the CPUC.

[SunEagle]

Aside from losses due to liabilities for causing fires from downed power lines, I think the Iinvestor Owned Utilities have been getting the gaeranteed return on operations that the CPUC has always alowed them and I am not aware of any losses from operations. . What they think they deserve is that garanteed rate of return that the CPUC has always given them. I have never thought that government run entities could be more efficient than privatre investor companies but in California the municipal utilites have less expensive rates than the IOUs. It is also interesting that the municipal utilities are also not regulated by the CPUC.

Sounds like a change in Government is needed.

[Ampster]

Sounds like a change in Government is needed.

The CPUC is the common denominator in my mind. While the municipal untilities model seems more efficient, I have not seen one of the scale that we would need in California. The largest one I know of is Los Angelos Department of Water & Power and it is unique because it provides water as well.
We also have Community Choice Aggregation providers which can provide the generation portion and so at rates competitive with the IOUs. Of course the proposal discussed in this thread is just the distribuiton part of the bill. Many people in other parts of the country do not even see these kind of rates because the distribution and generation are bundled together.

[SunEagle]

The CPUC is the common denominator in my mind. While the municipal untilities model seems more efficient, I have not seen one of the scale that we would need in California. The largest one I know of is Los Angelos Department of Water & Power and it is unique because it provides water as well.
We also have Community Choice Aggregation providers which can provide the generation portion and so at rates competitive with the IOUs. Of course the proposal discussed in this thread is just the distribuiton part of the bill. Many people in other parts of the country do not even see these kind of rates because the distribution and generation are bundled together.

I understand. I guess I am blessed with a power & fuel rate that combined is still at or below $0.09/kWh with Withlacoochee Electric. Some of the other POCO's here in Florida have been asking our PUC for rate increases due to the number of new solar fields they have recently installed.

I feel bad that CA has such high electric rates but at least you can justify installing solar there.