Residential rate structure is changing

Stemming from AB 327, the California Public Utilities Commission recently adopted fundamental changes to residential rate structure for the state’s three largest utilities.

All residential customers now have a $10 minimum delivery charge. The CPUC will consider changing that to a fixed charge in 2020.

Rate structure in 2019 will have three tiers, with most customers in the first two tiers. Those tiers will have a 25% differential.

This flattening of rate tiers and addition of minimum bill is not good for solar, but because the changes will be phased in over time they may be partially offset by rising average utility rates.

SCE Projected 2019 Rates

Commercial rates have solar-friendly options

A large portion of the bills of commercial customers is based on demand charges. Because solar customers have reduced demand at the times that drive utility costs, the CPUC has gradually agreed to require utilities to offer rates with reduced demand charges for commercial solar customers.

Each of the IOUs now have solar friendly commercial rate schedules - DG-R for SDG&E, Option R for SCE, and both Option R and A-6 for PG&E. The utilities have repeatedly proposed to close these tariffs, and CALSEIA has fought to keep them open and expand them. 


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