GGRA News Archive
PG&E: Using energy at the right time for opportunities to save money and help ensure reliability
Did you know that there are rates where the cost of a commodity can vary by what time you use it? Gas and electric energy are critical goods which require planning and protection to serve California’s needs cost-effectively and with minimal impact on the environment. To manage heightened electricity demands and support the state’s energy and greenhouse gas reduction requirements, the California Public Utilities Commission (CPUC) has mandated that all investor-owned utilities, like Pacific Gas and Electric Company (PG&E), pursue Time Varying Pricing. This mandate transitions all business customers from flat pricing plans (like A1 and A10 rates) to time varying pricing plans (like A6, A10TOU and E19 rates); more closely aligning customers’ price of energy with the cost of energy at the time it is used.
Businesses play an integral role in decreasing California’s costly peak energy demand and increasing energy reliability and efficiency. These new pricing plans also offer business customers more control and the opportunity to save money on their overall electric bills.
Time Varying Pricing
Many business customers are already eligible for a Time Varying Pricing plan from PG&E like Time of Use rate schedules. These plans encourage active management of energy use and create economic incentives for customers who can reduce peak use and shift some usage to off-peak energy times.
Energy costs less during off-peak times which include early morning, late evening, holidays, nights and weekends. Therefore, customers will save for the energy they use during these times. Business customers will have greater control in managing their overall electric bills simply by reducing energy used during peak times (12noon-6pm) and moving some portion of electricity use to partial peak (8:30am-12noon & 6:00pm-9:30pm) and off-peak times (9:30pm-8:30am).
Peak Day Pricing
All business customers will eventually become eligible for Peak Day Pricing which combines a time of use plan with peak day event surcharge.
Time of use plans offer lower rates during low demand periods (off-peak and partial-peak) and higher rates when demand is high (peak). Peak Day Pricing Event Days add additional fees to a portion of the peak period during nine to fifteen events per year (usually hot summer weekdays) and additional credits are offered for energy use during summer months. The plan features bill protection (for the first year the customer is on the plan) and day-ahead notification, allowing customers to participate without risk.
There are simple actions you can take to help your business be successful on Peak Day Pricing. To learn more about this plan, including when your electricity service will be eligible and ways to reduce and shift electricity use, be sure to visit us at www.pge.com/pdp.
If you have questions about rates or time varying pricing; contact your GGRA / PG&E partner, Rory Dimick, today at (415) 828-0877.