PG&E Peak Time Rebate Program (PTR)

Background

In October 2011, PG&E submitted an Application pursuant to the CPUC’s order to implement a Peak Time Rebate (PTR) program for the residential customers, which included a request to recover $32 million in incremental costs. The PTR program provides monetary incentives to encourage customers to reduce their peak period energy usage on hot summer days. PG&E’s primary proposal is to suspend PTR implementation, asserting that the program will not induce positive customer demand responses. PG&E’s February 2012 back-up plan was to roll out PTR in two stages: 1) to enroll 10% of the customers in May 2013 and 2) the remaining 4 million customers in May 2014.

Hearings on PG&E’s PTR Program were held at the CPUC April 23 – 27, 2012. 

 

ORA Position

ORA urges that the CPUC to direct PG&E to move forward with the PTR Program because:

  • PG&E customers are expected to gain several hundred million dollars of PTR demand response benefits based on PG&E’s $600 million proposal to upgrade its smart meter deployment.
  • PTR programs have been demonstrated to be cost-effective with Edison’s and SDG&E’s residential PTR programs.  
  • The CPUC found PG&E’s preferred alternative, Critical Peak Pricing (CPP), to not be cost-effective for Edison’s residential customers.
  • The CPUC has expanded the PTR Program to small commercial customers in Southern California as an effective solution to addressing the shutdown of the San Onofre Nuclear Generating Station in 2012.

ORA also recommends that the Commission should approve about $6 million, rather than PG&E’s proposed $32 million budget, for PG&E’s PTR implementation costs, and suspend active marketing of residential Critical Peak Pricing until the PTR Program is fully implemented.

See ORA’s May 22, 2012 Brief.

See ORA’s June 7, 2012 Reply Brief.

See ORA’s March 13, 2012 ORA’s Testimony.

 

Current Proceeding Status

A Proposed Decision is expected in early 2013. 

See the Proceeding docket.