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 SDG&E General Rate Case (GRC) Phase 2 - Solar Power, Electricity and the details...
This months newsletter will be dedicated almost exclusively to bringing you the latest info about what SDG&E claims to be an equalization (an attempt to create fairness) for all of its captive customers. Unless you are off the grid, unfortunately, you are held captive to and by the actions of SDG&E. The newsletter will return to its normal format in the next issue.
The issues at hand go way beyond what the utility is calling an attempt at fairness, but the rhetoric being offered is teetering over the cliff of misinformation. I quote SDG&E spokeswoman Stephanie Donovan in the Union Tribune ,“We don't think it's fair that just because you can put solar on your roof that your neighbor should pay for it.” Now we all know that this is a ludicrous mis-truth. Statements like that do not help SDG&E build trust with their customers. The many positive aspects of the solar customer and the subsidy they provide to the utility are intentionally being ignored or downplayed, and it is would seem that revenue stream protection is being placed above positive economic growth and efforts to make our country a leader in renewable energy.
The issues to be covered with regards to GRC Phase 2 are:
These topics will be covered and direct reference to published data will be made where available.
Is Solar Power still a good investment?
Yes, both financially and environmentally. Granted if GRC Phase 2 is passed solar customers will see their utility charges increase but it will still be significantly less than before they went solar. Since the solar customer generates their own electricity, they will be protected from future expected SDG&E rate increases which have been projected at about 7% for 2012. The general rates are forecasted to double every 10 years, so a solar system will still save customers hundreds of thousand of dollars over it's lifetime and reduce carbon emissions significantly.
What is the fiscal impact of GRC Phase 2?
The GRC that SDG&E has submitted to the California Public Utilities Commission (CPUC) outlines a “network use” charge that would essentially charge solar energy producers for contributing energy to the grid. Using numbers provided by SDG&E, the California Center for Sustainable Energy (CCSE), a non-profit energy innovation organization, determined that the average residential solar customer’s electric bill will see a 94% annual bill increase. Its impact on municipalities, schools and commercial entities is no less dramatic, with an average increase of between 74-242%. We have seen estimates that show UCSD K-12 school system paying SDG&E an additional 1-3 million dollars a year. The calculations run by CCSE (more details here) indicate that passing a rate case such as this during our current economic situation go beyond fiscally irresponsible and will certainly escalate the costs for state and municipalities already managing severe budget deficits. This means that all of us, solar producer or not, will be paying for SDG&E's profits with higher state and local taxation and service reduction to cover the newly expected shortfalls. Is the GRC Violating Net Metering Law?
Upon reviewing Section 2827(g) of the Public Utilities Code it would appear that this Rate Case violates the intent of the NEM law by imposing a charge that only solar producers end up paying. SDG&E does seem to be attempting to circumvent NEM law via this rate case.
20 Years of Environmentally Progressive Public Policy – Wiped Out
The solar industry has enjoyed bipartisan support in California. This egregious move by SDG&E will effectively wipe out 20 years of good energy policy for the benefit of the utility and halt widespread renewable energy adoption. California has been the model for our nation, who has embraced a move toward energy independence and carbon reduction.
Dangerous Precedent for Other Utilities to Follow
Make no mistake; every Independently Operated Utility (IOU) is currently making a profit from solar energy producers. They generate revenue from the resale of the energy that they did not have to pay to produce. Via the 14,500 independent solar producers, SDG&E received the equivalent of a 100MW (and growing) solar power plant in basin that neither they, nor their ratepayers, had to pay to install, upkeep or run. And these solar power producers are happy with the current NEM contract, which allows them a “dollar for dollar” match for the energy they contribute to the grid. What you may not know is that all IOUs nationwide are pushing for a "network use" charge. San Diego is the front line on this matter. The CPUC’s determination will set precedent for every other IOU in the nation to cite.
Effect on Solar Industry Growth
The San Diego solar industry has been actively following the GRC and has determined that this proposal will decimate the strongest, fastest growing sector of the San Diego economy. Eliminating the value proposition for rooftop solar is detrimental to the continued growth of the solar industry in California. In the last year, the industry grew by a remarkable 69% nationwide – making it the fastest growing sector in our dull economy. In California alone, the solar industry represents an estimated 30,000 jobs. A favorable ruling from the CPUC regarding this rate case would put those jobs at immediate risk.
Is this a veiled attempt to stomp out competition- does anyone remember (co-generation)?
A review of news articles from 1987 where SDG&E effectively eliminated co-generation, will provide you with an interesting perspective. The justifications used at that time are almost identical. So that you can see the irony for yourself, I have included some news links below:
http://articles.latimes.com/1987-08-09/local/me-272_1_electric-utility
http://articles.latimes.com/1987-09-24/local/me-9756_1_electricity-rate
http://articles.latimes.com/1987-10-04/local/me-32850_1_sdg-e-co-generation-industry-rates
Ultimately, if by chance you feel like California is being taken again by our public utility company, now would be a good time to take action. You can go to san-diego-solar-revolt.org and join a growing petition to stop SDG&E. This issue of fairness is really more like divide and conquer than anything else. If the propaganda machine can make the solar people look like bad guys, then SDG&E can be the hero equalizer again like in 1987 and they can maybe once again eliminate competition. It would be a sad day for California if we let them blind side us again.
Local residential letters to the editor may be viewed in the link below:
http://www.signonsandiego.com/news/2011/oct/28/solar-users-feel-burned/
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