Electric Rate Design

Rate Design issues are considered in the second phase of a General Rate Case. Generally, a General Rate Case occurs for each Investor-Owned Utility every three years.  In the first phase of the General Rate Case, the CPUC determines the amount of revenue that the utility requires to cover all of its costs. The second phase, the Rate Design, involves determining the rate each customer class will pay. Small rate design changes can be implemented between General Rate Cases in proceedings called Rate Design Window. In 2008, the PG&E General Rate Case additionally had a third phase to discuss Dynamic, or Time-variant, Pricing.

Statewide Issues

California Residential Electric Rate Redesign

In June 2012, the CPUC opened a proceeding to examine whether the current residential electric rate design is meeting the state’s objectives or whether an alternative rate design should be implemented. In October 2013, Governor Brown signed into law AB 327 (Perea), which allows the CPUC greater flexibility in setting residential rates.

 

Southern California Edison (Edison)

2014 Rate Design Window

Edison requested interim adjustments to its Rate Design to establish a new optional Time-of-Use schedule tailored for electric vehicle owners, but open to all customers.  

2012 Revenue Allocation and Residential Rate Design

In June 2011, Edison filed an Application requesting CPUC approval to update generation and distribution marginal costs  which in turn are used to set revenues for the respective customer classes.

Economic Development Rate

A CPUC decision in pending on a Settlement that would allow Edison to offer an Economic Development Rate that would discount electricity rates for commercial and industrial customers with at least 200 kW of consumption in economically distressed counties and cities within the Edison service territory.

 

Pacific Gas and Electric Company (PG&E)

2014 Revenue Allocation and Residential Rate Design

In April 2013 PG&E filed an Application requesting the CPUC adopt its proposals to revise electric marginal costs, revenue allocation, and rate design that would impact customer bills starting in 2014.

Economic Development Rate

A discounted energy utility rate for commercial and industrial customers with at least 200 kW of load, designed to attract or retain "at risk" businesses that might otherwise cease to do business in California. 

Peak-Time Rebate Program (PTR)

The PTR program provides monetary incentives to encourage customers to reduce their peak period energy usage on hot summer days.

Time-Variant Electric Pricing

In November 2011, the CPUC approved a decision imposing mandatory time-variant pricing programs on small business customers of PG&E in two stages, beginning in November 2012.

 

San Diego Gas & Electric Company (SDG&E)

General Rate Case Phase II - Rate Design  

On April 13, 2015, SDG&E filed its GRC Phase II Application, requesting CPUC approval to update policies related to Rate Design.

 

2012 Rate Design 

In March 2012, SDG&E filed an Application with the CPUC requesting approval to changes its rates for 2013 – 2014 for certain customer classes and to implement a prepay energy program for residential customers.

Time Variant Pricing

In December 2012, the CPUC approved a decision imposing mandatory time-variant pricing programs on small business customers of SDG&E starting in November 2014, with an optional program commencing in November 2013.

  

Other Resources

See ORA's Presentation on Rate Design Basics.