May 10 Update: Yesterday Governor Arnold Schwarzenegger issued a press release (reprinted below) where he announced that he and the Legislature will introduce a bill to authorize the PUC to allow TOU rates to be optional for CSI customers. The intent is to enact that bill by early June so that the PUC can then adopt an order to modify this requirement in June.

Updates will be posted as new information becomes available.

"Gov. Schwarzenegger Sponsors Legislation to Correct Flaw in California's Million Solar Roofs Plan, May 10, 2007

Governor Arnold Schwarzenegger today announced that he is sponsoring legislation to fix an unintended flaw in legislation passed last year to complete his Million Solar Roofs plan.  The program, administered by the California Public Utilities Commission (CPUC), provides financial incentives to home and business owners to install solar systems to reduce electricity demand in California, helping to ensure an adequate supply and protect the environment.  

"California is a national leader in solar energy.  By expanding its use in homes and businesses across our state, we can help fight greenhouse gases while bringing more jobs to California." said Governor Schwarzenegger.  "Last year's legislation had an unintended flaw we are seeking to immediately fix so we can maximize Californians' participation in the program."  
 
To expedite the passage of urgency legislation, the Governor has reached a conceptual agreement with a bipartisan group of legislators including Assemblymembers Lloyd Levine, Rick Keene, Bonnie Garcia, John Benoit and Senators Christine Kehoe, Bob Dutton and Jim Battin to quickly introduce a bill that fixes the problem.  The Governor has also worked with utilities, environmental groups and other stakeholders to craft the agreement.  
 
The unintended problem is related to the current statutory requirement for Time of Use rates for electricity customers that install solar systems.  The solution allows the CPUC to temporarily change the rate structure for solar systems installed since January 1, 2007.  The legislation must be signed into law by June 6, 2007, to allow the CPUC to take action at its next regularly scheduled meeting.
 
The legislation will also allow the CPUC to offer rebates or credits to ratepayers impacted by the current rate structure."

April 19 Update: Yesterday at 5pm was the deadline for filing comments  at the PUC on the Joint Petition to allow Time-of-Use rates to be optional until TOU rates for solar customers are developed.

Three sets of comments were filed. ASPV and SDG&E filed comments in support of the petition.

SCE filed a petition that suggests opposition but also suggests that if TOU rates were optional until new rates are developed they would be supportive of that as well (although the wording is unclear - see the last sentences on pages 10 and 11). They also suggest leaving multifamily on non-TOU rates because a TOU rate for these buildings does not exist in a footnote. They did not address commercial TOU rates. 

ASPV did address residential and commercial rates and relyed partly on the commercial analyses developed by SCE. ASPV also raises important precedent regarding the construction of the statute (the two sentences that say TOU is required and then in the next sentence directs the PUC to develop the TOU rate).

Copies of the reply comments can be downloaded here:

ASPV: aspv070418_responsepetmodtou_fin

SDG&E: sdger0603004 comm on pfm

SCE: sce reply comments

Next steps:

Procedurally: The PUC Administrative Law Judge will prepare a draft decision for consideration by the PUC.

Gordon Bloom at Genself will try to determine if the meter issue raised by SDG&E is also present in SCE meters.

CALSEIA will continue to work with and collaborate with SCE, SDG&E, and PG&E on rate and program implementation problems that impede the use of solar in their service territories.

CALSEIA will investigate options for legislative relief for solar customers.

We are hopeful the PUC will be supportive of the petition requesting TOU rates be optional.

If CALSEIA members would like to help - please send an email to This email address is being protected from spam bots, you need Javascript enabled to view it .

We also express our condolences for their families, friends, and community of Viginia Tech.

March 28 update: SCE, CALSEIA, PVNow, ASPV, and Vote Solar participated in a conference call yesterday to discuss the situation with TOU rates. SCE provided an analysis of the TOU rates that will take effect on April 1, 2007 and how these might improve the situation with residential solar customers who install systems that are sized to meet less than 100% of their energy demand. The group is now exchanging information and working together to verify those results and identify any other issues that need to be addressed (such as small commercial and multifamily). SCE has given CALSEIA permission to publish the draft analysis. Please note it is a draft. If you have questions, please send an email to CALSEIA at This email address is being protected from spam bots, you need Javascript enabled to view it . We are hopeful that this will be a step forward in the right direction and will provide updates and new information as it becomes available.

Thank you to the members of CALSEIA who support our efforts to help bring about the greater use of solar energy systems in California.

SCE Analysis of New TOU rates: TOUD-SolarPV-DRAFT 

March 6 update: With permission, Assembly Member Benoit gave permission today to CALSEIA to post a copy of the letter he received today from PUC President Peevey. To view a copy of this letter, please click on the link below. As you will see, President Peevey is acutely aware of the issue and is working with us to help develop a solution as quickly as possible.

assm benoit march 6 2007 ltr on csi

President Peevey's letter was in response to a letter he received from four Legislators who represent the Palm Desert/Cochella Valley area of Southern California.

letter to cpuc re solar energy 

CAL SEIA filed a petition on March 5, 2007 with Vote Solar and PV Now to request temporary relief from the requirement to use TOU rates for customers participating in the solar incentive program. If the PUC grants this request, customers would still be able to opt into TOU rates but for those whose systems do not provide 100% of their demand, this request would help them go solar.

The petition can be downloaded here:

Petition for Modification _X87030_

Many thanks are owed to CALSEIA members, particularly Gordon Bloom and Pat Redgate for providing the case studies used in the petition.

CALSEIA, Vote Solar, and PV Now also filed a petition on March 5, 2007 to request changes to the requirements for meters. This petition can be downloaded here:

030507petition_for_modification_of_d06-08-028__2_

CALSEIA members will receive updates on the status of the petitions as information becomes available.