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Customers of clean energy programs hit with fee increase

Lizzie Johnson, SFGATE

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.

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.”
Read more at: Customers of clean energy programs hit with fee increase – SFGate

Posted on Categories Climate Change & Energy, Local OrganizationsTags , , ,

Op-Ed: PG&E’s plan to raise an obscure fee on your monthly bill

Woody Hastings, THE PRESS DEMOCRAT
Nearly 90 percent of Sonoma County Pacific Gas & Electric customers are also Sonoma Clean Power customers who may soon be hit with an electric bill increase through no fault of Sonoma Clean Power. Whether this happens depends on a decision to be made today by the California Public Utilities Commission.
The commission will decide whether PG&E and other utilities can increase a previously small charge on customers’ bills. PG&E is requesting the increase as compensation for losses the company claims to have incurred because Sonoma Clean Power customers no longer pay PG&E for power the company says it purchased on their behalf. To be clear, monthly electricity bills wouldn’t increase because Sonoma Clean Power is raising its rates, but because PG&E would be significantly increasing what is known as the Power Charge Indifference Adjustment.
Sonoma Clean Power has enjoyed a spectacularly successful launch and first full year of service. Rates are currently 6 to 9 percent below PG&E rates, including the current Power Charge Indifference Adjustment fee. Sonoma Clean Power customers’ dollars pay for 36 percent renewable energy in the basic power mix, which is about 48 percent lower in greenhouse gas emissions than PG&E’s mix. When Sonoma Clean Power considered rate changes earlier this year, it chose to keep them unchanged from the previous year, in contrast to PG&E’s 30-plus year trend of increasing rates an average of 4 percent per year.
PG&E’s proposed radical increase in the Power Charge Indifference Adjustment fee is among many attempts it has made over the past decade to crush community choice. Its attempts include aggressive anti-community choice marketing, several failed proposed laws in the state Legislature and a failed ballot initiative in 2010 on which PG&E spent $50 million of shareholder money.
The intent behind the Power Charge Indifference Adjustment is to ensure that PG&E customers do not experience any increase in their rates due to the fact that some customers have departed as new community choice customers, making the PG&E customers “indifferent” to the fact that a new community choice program has launched. The premise is that PG&E has made long-term power purchases on behalf of the community choice customers who are no longer full customers of PG&E. However, the way the fee is calculated and what purchases are counted are cloaked in mystery.
The timing of this “adjustment” to the Power Charge Indifference Adjustment coincides with the anticipated launch of San Francisco’s Community Choice program in early 2016. Many other communities in PG&E’s service territory are also on track to establish community choice programs imminently. With a dramatically increased Power Charge Indifference Adjustment, community choice programs lose their competitive edge, and the many communities currently considering Community Choice may abandon it instead.
PG&E cannot raise the fee without the state Public Utility Commission’s approval. You can reach the CPUC at public.advisor@cpuc.ca.gov.
Woody Hastings is the renewable energy implementation Manager at the Center for Climate Protection, which is based in Santa Rosa.
Source: PG&E’s plan to raise an obscure fee on | The Press Democrat