By Ryan Park
November 8, 2019
If your power is delivered by PG&E, significant tariff changes are starting to take effect that can drastically alter the cost of your energy. For some savvy businesses that take action, your costs can actually go down. For others that don’t act, chances are you’ll be paying more than you should. Below is a real client example that will save over $50K (16%) in annual bills, just by selecting the optimal the PG&E rates.
The following is a summary of the timing and major tariff adjustments coming. We understand it is challenging for a business to evaluate and determine the best tariffs without having dedicated, knowledgable personnel and utility rate software to support the analysis. However, CCE has tools and experience to provide you with actionable information that will minimize your energy costs.
If you have meters that are enrolled in:
- Commercial and Industrial tariffs:
- On November 1, 2019, you can voluntarily opt in to the new structures. Or you can wait until PG&E forces you to change on November 1, 2020.
- If you do nothing PG&E will choose a default rate that may or may not be the lowest cost option for your unique situation.
- Agriculture Tariffs:
- On March 1, 2020, you can voluntarily opt in to the new structures. Or you can wait until PG&E forces you to change on March 1, 2021.
- If you do nothing PG&E will choose a default rate that may or may not be the lowest cost option for your unique situation.
- Existing Solar Customers (both Commercial / Industrial and Agriculture):
- You can grandfather your existing (TOU) rate structure until 7/31/2027 (12/31/27 for public entities).
- “Grandfathering” sounds like a good deal? True, PG&E may allow you to stay on the old TOU structure. However, they are drastically changing applicable TOU energy charges, so this may not be your best financial option.
Wouldn’t it be nice if PG&E proactively analyzed your unique energy usage and suggested the lowest cost option for your business? Yes. However, when a (for-profit) bankrupt company is facing billions of dollars of litigation and upgrades for aging infrastructure, they aren’t necessarily motivated to minimize your expenses.
Thankfully, we can help minimize your electricity costs; especially when it’s as simple as smart rate tariff selection! So to keep this post somewhat brief, we will spare you the nitty-gritty details and keep it high level, while providing some links for those who want to dig into the details.
New TOU Structures – HIGH LEVEL:
- What has been the “Peak” cost of energy is now mostly “Off-Peak”. Power will be most costly from 4-9 PM (for C&I) and 5-8 PM (for Agriculture) – 7 DAYS A WEEK.
- Summer rates will be reduced to four months (June 1 – October 1) vs six months (May 1 – November 1).
- Lots of other changes to Energy Charges (kWh), Demand Charges (KW) and entirely new naming conventions
Bottom line:
There are more tariff options than ever before… and EVERY electricity meter serves a unique purpose. Consumption patterns directly impact the costs that PG&E will charge. As a result, powerful software is now required to analyze your unique situation to provide you with the information needed to choose the lowest cost tariff for all of your meters.
Let us know if you have questions. We are standing by to help.
Links for more information: