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Who’s Afraid of Retail Electricity Rate Reform?

Has anyone ever wondered why Surprise Valley Electric in far NE California and Trinity PUD in trinity county California can charge on average just about 1/3rd to 1/2 the cost for their electric service (Overall , connection charge + electric + delivery) compared to the rest of California.
And their power rates do not double and triple the more you use (tiered rates)

Trinity PUD


SURPRISE VALLEY ELECTRIFICATION CORP
 
Has anyone ever wondered why Surprise Valley Electric in far NE California and Trinity PUD in trinity county California can charge on average just about 1/3rd to 1/2 the cost for their electric service (Overall , connection charge + electric + delivery) compared to the rest of California.
And their power rates do not double and triple the more you use (tiered rates)

Trinity PUD


SURPRISE VALLEY ELECTRIFICATION CORP
It seems inevitable that the ones who can go municipal electric will do so to detach from the subsidizing of those living in the mountains and padding the shareholder pockets
 
Has anyone ever wondered why Surprise Valley Electric in far NE California and Trinity PUD in trinity county California can charge on average just about 1/3rd to 1/2 the cost for their electric service (Overall , connection charge + electric + delivery) compared to the rest of California.
And their power rates do not double and triple the more you use (tiered rates)

Trinity PUD


SURPRISE VALLEY ELECTRIFICATION CORP
Because, SURPRISE!
:sneaky:
 
Approximately half of a typical customer's bill, $120 or so, goes into fixed costs of the grid, and would be more realistically reflected in a fixed fee, and without reducing their bill this would still incentivize electrification because they could increase their electric consumption at half the per kwh rate, getting a better value out of their increased consumption.

Only when a bill accurately reflect reality can people make accurate energy choices. But there's no hope of that, so we'll piss into the wind with the $24 and keep spiraling.

I understand how you feel about rooftop PV customers zeroing their net consumption and avoiding paying for grid.

But excluding that case, just considering people who simply buy and use power from the grid, I think it is better to have zero baseline charge and bundle infrastructure into kWh rate.

The goal is to reduce energy consumption, right? And someone who consumes less power should bear a smaller portion of upgrades.

Same goes for water. I have a flat rate of $200 every 2 months regardless of how little I use.
 
The big problem I have with this is that you have to disclose you're income (tax returns?) to the utility company (or govt) so they can figure out the rate. Total invasion of privacy - not the America I grew up in.
I think that is no longer correct. Last month, the CPUC issued a proposed decision that will lower energy charges by five to seven cents per KWh through a new FIXED charge of $24.15 a month for all customers who are not enrolled in low-income rate programs.

As Hedges noted, the Fixed Charges will penalize frugal, energy efficient (and SOLAR) customers who use less than the average amount of grid electricity because they are not low-income customers.
 
I think that is no longer correct. Last month, the CPUC issued a proposed decision that will lower energy charges by five to seven cents per KWh through a new FIXED charge of $24.15 a month for all customers who are not enrolled in low-income rate programs.

As Hedges noted, the Fixed Charges will penalize frugal, energy efficient (and SOLAR) customers who use less than the average amount of grid electricity because they are not low-income customers.
A fixed charge is one thing, however.....

The OP listed "....and an income-graduated fixed charge...." - e.g. income graduated as apposed to just a fixed charge and the income part has been part of this initiative as far as I've read to date. "Income Graduated" means one will need to report/share income just for a utility.... which means report updates every year via an online form? or grant automatic access to tax returns? since one's income changes year to year.

The morass of tying income to rate charges is mind-boggling to me either by having to auto-share my tax returns or fill something out. What if one doesn't bother to file a tax return? And even if you share, how is income defined - e.g. do tax free municipal bonds or IRA's count as income ? do fire losses count as a deduction? What if the utility get's my income info wrong and won't fix it - what is my recourse? There are 100s of questions and usually the customer/tax-payer doesn't come out on top with expanded bureaucracy. And once this is in place then water, garbage, x, y, z are likely next.

We lived in San Jose 20yrs ago when they initiated the 'choose you're own provider' that totally failed and at least doubled our electric rates. This is one of the reasons we left CA and these current proposals are just more noodling with actual customers at the bottom of the priority list. This kind of noodling does not have a good track record in my book but unfortunately, CA policies tend to migrate to WA state and OR (where I live now) so what happens is of interest.
 
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Plus corp greed (Enron anybody?)
Energy company shareholders aren't going to feed themselves.
padding the shareholder pockets
You seem to think that owners of a company should not get compensation for their investment. It is rather obvious that you have never owned a business. They don't last very long if all they do is lose money. Making a profit on your investment is not greed, it is the only way to keep a business running. Money is kept by the company to cover operating costs, which include unseen contingencies. A portion of it is distributed to the owners when it is more than needed to cover projected costs. They get the money because they have all of the skin in the game.

In the case of the Glorious Peoples' Republic of California, you should pass the blame around to the state and the tree huggers that don't want trimming done near lines or control burns done on forest lands. Add in a socialist nature in general and you get a great recipe for mismanagement of the whole power issue.
 
A fixed charge is one thing, however.....

The OP listed "....and an income-graduated fixed charge...." - e.g. income graduated as apposed to just a fixed charge and the income part has been part of this initiative as far as I've read to date. "Income Graduated" means one will need to report/share income just for a utility.... which means report updates every year via an online form? or grant automatic access to tax returns? since one's income changes year to year.

The morass of tying income to rate charges is mind-boggling to me either by having to auto-share my tax returns or fill something out. What if one doesn't bother to file a tax return? And even if you share, how is income defined - e.g. do tax free municipal bonds or IRA's count as income ? do fire losses count as a deduction? What if the utility get's my income info wrong and won't fix it - what is my recourse? There are 100s of questions and usually the customer/tax-payer doesn't come out on top with expanded bureaucracy. And once this is in place then water, garbage, x, y, z are likely next.

We lived in San Jose 20yrs ago when they initiated the 'choose you're own provider' that totally failed and at least doubled our electric rates. This is one of the reasons we left CA and these current proposals are just more noodling with actual customers at the bottom of the priority list. This kind of noodling does not have a good track record in my book but unfortunately, CA policies tend to migrate to WA state and OR (where I live now) so what happens is of interest.
Not solar related but if you sign up for the state health insurance exchanges where states manage their own and not rely on the fed one, it will lookup your income from the previous year (at least in NY) to calculate your final premium (Obamacare subsidy varying with income).
 
The goal is to reduce energy consumption, right?
That's not my goal. And besides, when you squeeze electricity the consumption just squirts out into the natural gas market, as is the case, with California being the #1 state for home natural gas despite having the most ideal climate for heat pump.
 
Rural (often lower income, higher usage customers) would pay significantly more $$$.
This is a hot topic lately, but somewhat counter proven by all rural coops in California being cheaper than PG&E. The federal government still provides rural electrification funding.

I think we should end utility liability for wildfires, they're a fact of the landscape and a risk the land owners should take on.
 
The big problem I have with this is that you have to disclose you're income (tax returns?) to the utility company (or govt) so they can figure out the rate. Total invasion of privacy - not the America I grew up in.
Don't think they are doing that. The only time you have to disclose your income is if you want to qualify for low-income rates. If not, no disclosure needed.
 
Has anyone ever wondered why Surprise Valley Electric in far NE California and Trinity PUD in trinity county California can charge on average just about 1/3rd to 1/2 the cost for their electric service (Overall , connection charge + electric + delivery) compared to the rest of California.
Because they are not regulated by a PUC.
 
This is a hot topic lately, but somewhat counter proven by all rural coops in California being cheaper than PG&E. The federal government still provides rural electrification funding.

I think we should end utility liability for wildfires, they're a fact of the landscape and a risk the land owners should take on.
Even if strict liability and inverse condemnation laws were revised related to wildfires, utility bills would not change much. There are too many social policies and programs built into the IOU utility bills. Only moving some of the infrastructure costs onto the state or federal ledger will reduce ratebase and thus reduce rates. Providing basic service to lower income customers is a state function that should not be done through rates. Also, promoting interregional reliability by building transmission between regions is a competitive advantage for the US and should be supported through federal grants, policies including streamlining permitting.
 
Even if strict liability and inverse condemnation laws were revised related to wildfires, utility bills would not change much. There are too many social policies and programs built into the IOU utility bills. Only moving some of the infrastructure costs onto the state or federal ledger will reduce ratebase and thus reduce rates. Providing basic service to lower income customers is a state function that should not be done through rates. Also, promoting interregional reliability by building transmission between regions is a competitive advantage for the US and should be supported through federal grants, policies including streamlining permitting.
I can agree with that, until you get to the transmission part. If we built more robust local nuclear and gas we would not need to chase this transmission dragon.
 
Because they are not regulated by a PUC.
And because they don't pay their CEO $17 million per year.
And make $2.24 billion per year in profits.
 
At $24 vs. my present $10 or $12 minimum monthly payment, I'm not going to worry about it.

To boil a frog without it jumping out of the pot, raise the heat slowly.



PG&E is allowed to make a profit up to 8% of assets. Could make less, if operations aren't doing well.

Are those assets purchased by the company, investing its own money?
Or if I had consented to paying $150k for hookup of 3-phase service, would the equipment and installation paid for with my money have entitled them to $12k profits that year (and a declining amount as it is depreciated.)?

I'm driving a nice Diesel/Allison K2500 which PG&E dumped at auction because it was worthless. Depreciated to zero with 13 year and 130k miles, so didn't entitle them to any profits; time to buy a new expensive one.
 

Who’s Afraid of Retail Electricity Rate Reform?

California just moved one step closer to changing the way households pay for electricity. If all goes according to these newly proposed plans, Californians will be paying lower electricity prices and an “income-graduated” fixed charge by 2025. The impetus for electricity rate reform? California’s retail electricity prices are high and rising
They are not going far enough. They should charge the high income earners a fixed charge of $1000 a month.

This will encourage and quicken the pace of grid defection, the embrace of solar plus storage, and the eventual death of the evil grid.
 
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Not solar related but if you sign up for the state health insurance exchanges where states manage their own and not rely on the fed one, it will lookup your income from the previous year (at least in NY) to calculate your final premium (Obamacare subsidy varying with income).
Optional government program - there are choices. Utilities are not the same kind of optional and are not a government program.
 
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