CPUC Sets New Time-Of-Use Periods For SDG&E To Reflect Changing Energy Market
August 25, 2017
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The California Public Utilities Commission (CPUC) established new time-of-use periods for San Diego Gas & Electric (SDG&E) to reflect the changing energy market, including a later on-peak period and a spring super-off-peak period.
In adopting an uncontested settlement agreement that allocates SDG&E's revenue among its different customer classes (residential, small business, commercial, industrial), the CPUC also adopted an on-peak time-of-use period of 4-9 p.m.
Time-of-use pricing utilizes a rate structure that varies depending on the time of day during which energy is consumed, with higher rates charged when electricity demand or costs are higher.
"Solar energy has become an important part of our clean energy grid. We saw how it changes the way we use energy last week during the eclipse. And we also saw the benefit to the grid and avoided use of gas generators when customers took action to avoid using electricity during the sun's short break and while solar output dropped," said CPUC President Michael Picker, the Commissioner assigned to the proceeding. "During hot summer months, our peak period during late afternoons has also changed significantly. The best evidence shows that the optimum time to avoid using electricity is now from 4 to 9 p.m. That's why we move to shift SDG&E's time of use rate structure to meet that same span of time."
The proposal voted on is available at http://docs.cpuc.ca.gov/PublishedDocs/Published/G000/M194/K473/194473384.PDF.
Source: California Public Utilities Commission
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