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CPUC Moves Forward with PG&E Dynamic Pricing Proposal
By Dan Geis
April 2009
On February 27th, PG&E filed to introduce “dynamic pricing” on all large agricultural customers in the next two years, and proposed to eliminate all non-time-of-use (TOU) rates for small agricultural customers. The application will ultimately apply to all non-residential customers.
PG&E made the filing under orders from the California Public Utilities, and stems from discussions that have been ongoing at the CPUC for years regarding "critical peak pricing."
Specifically, the proposal would place all agricultural meters with demand greater than 200 kW on “default” dynamic pricing, where energy prices would be determined on a “day ahead” basis. Under the proposal, these customers will be notified of this impending switch, and will be allowed to “opt out” and remain on normal time-of-use pricing.
For customers smaller than 200 kW and on non-TOU rates (such as AG-1A and AG-1B), all customers would be required to convert to TOU rates. These customers will not be required to be placed on dynamic rates. Initial data from PG&E indicates that the vast majority of existing non-TOU customers could see significant rate decreases as a result of switching to TOU rates under this proposal. AECA is currently studying this claim.
Before any customer is switched, the account must have a new “advanced meter” and also have access to 12 months of advanced meter data.
AECA and numerous other parties are greatly concerned about this proposal, and AECA will be intervening in this proceeding to voice our concerns. Some of these concerns include ensuring that PG&E’s analysis of rate reductions associated with moving small customers to TOU rates is correct. Similarly, AECA remains strongly concerned that data associated with advanced meters has not been shared with customers in a format and system that allows the farm or agribusiness to use that data in a meaningful way. AECA staff and consultants are currently drafting a formal data request within the application to learn more about this proposal.
A decision from the CPUC is expected by the end of 2009.

Contact the AECA by E-Mail
Agricultural Energy Consumers Assocation
925 L Street, Suite 800 / Sacramento, CA 95814
(916) 447-6206