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Home My WebLink AboutMINUTES - 10281986 - 1.38 '!'O: Board of Supervisors FROM: Sara Hoffman, Energy Coordinator DATE: October 28, 1986 SUBJECT: Residential Time-Of-Use Electrical Rates Specific Request(s) or Recommendations(s) & Background & Justification RECOMMENDATION AUTHORIZE Chair to sign letter to the California Public Utilities Commission recommending expansion of the residential time-of-use electrical rate program. FINANCIAL IMPACT None to County. REASONS FOR RECOMMENDATION/BACKGROUND Contra Costa County has been the local government spokesperson for time-of-use (TOU) rates in the last three PGandE Rate Cases. In 1985 the County received the State Energy Innovation Award and National Award for Innovation for our efforts. Time-of-use rates are a self-supporting optional rate. Participating families pay for electricity according to how much use and when they use it. Electricity is priced more during the peak hours (noon to 6: 00 p.m. , Monday-Friday) and less during the off-peak hours. After paying the $3 .00/month meter charge, the typical family saves 6%-8% on their utility bill and reduces peak consumption by .43 kw. Families benefit from time-of-use rates by lowering their utility bill while PGandE benefits by not using expensive peaking power plants. Time-of-use rates are a consumer equity issue. TOU rates are widely available to all customer classes, except the residential class. Without time-of-use rates, families are caught in a "catch 22" of high peak demand and spiralling electricity costs. In August the Public Utilities Commission changed its method of allocating PGandE' s revenue requirements among the customer classes . This new methodology will increase residential rates substantially over the next three years because of the high peak demand of the residential class. Time-of-use rates are the only means available to the residential class to lower their peak demand and consequently their revenue allocation and their rates. The letter to California Public Utilities Commission would convey Contra Costa County' s concern for widespread availability of residential time-of-use rates and protest the use of a million dollars for superfluous studies. Continued on attachment: yes Signature: Recommendation of Recommendatifn of County Administrator Board Committee Approve Other: Signature(s) : Action of Board. on: OCT 281986 Approved as Recommended Other Vote of Supervisors I HEREBY CERTIFY THAT THIS IS A TRUE / AND CORRECT COPY OF AN ACTION TAKEN v Unanimous (Absent ) AND ENTERED ON THE MINUTES OF THE Ayes: Noes: BOARD OF SUPERVISORS ON DATE SHOWN. Absent: Abstain: Attested OCT 2 8 1986 Orig. Div. : CAO(Energy) Phil Batchelor cc: Clerk of the Board of Supervisors and County Administrator BOtou By T/7evr , n , DEPUTY SH:eh hil The Board of Supervisors Contra lark ofBatchelortBoar Clerk o1 the Board and CostaCCounty Administrator County Administration Building J (415)372-2371 651 pine St., Room 106 County Martinez, California 94553 Tan Powers, tst District Money C.Pshdsn,2nd District Poba 1.Schroder,3rd District Strom Wright MOPosk,4th District Tan Torialtson,5th District ex -M October 28, 1986 Frederick Duda Presiding Commissioner Public Utilities Commission State Building San Francisco, Ca. 94102 Dear Commissioner Duda: Contra Costa County strongly protests the joint stipulation in the PGandE Rate Case. We urge you to authorize a_ budget sufficient for PGandE to install at least 20,000 residential time-of-use meters each year. In addition, we hope that the Commission will not waste a million dollars of ratepayers money for additional time-of-use studies, for which even PGandE admits "the marginal benefit is not worth the cost." The joint stipulation mocks the Commissions Decision 86-08-083 , adopted August 20, 1986. In that decision the Commission cited the need for proper price signals, both at a class and customer level. The Commission stated that EMPC and TOU rates are "needed to provide equitable and .nondiscriminatory rates." The joint stipulation will permit the installation of approximately 1,000 residential time-of-use meters each year. PGandE estimates there are approximately 400,000 potential time-of-use rate customers. Is it the Commissions intent to implement this program over a 400 year period? We hope not. Contra Costa County also questions the use of a million dollars of ratepayer money for further time-of-use rate studies. Time-of-use rates have been studied over and over again. The record is replete with documentation on load shifts and load reductions. The million dollars would be better spent purchasing time-of-use meters. Frederick Duda October 28, 1986 Page -2- we would also like your support for a purchase option for time-of-use meters. Currently, residential time-of-use rate participants pay a $3 .00/month meter charge in perpetuity. Some customers may prefer a onetime purchase fee and a smaller monthly maintenance charge. This is especially true now that meter costs are decreasing rapidly, down to the $100/meter range. However, we believe that the meter purchase option should not be a substitute to increased authorization for rental meters. A family should not be precluded from the time-of-use rate program because they do not have an extra $100 for the meter purchase. Contra Costa County has been involved with residential time-of-use rates for the last three rate cases. We have sponsored demonstration programs for our citizens. In 1985 PGandE and Contra Costa County jointly received the State of California Energy Innovation Award and the National Award for Energy Innovation. We speak from experience. We also speak for the many families who need to carefully budget their resources. These are families who would shift their energy use if given the opportunity. We ask that you give them that chance. Thank you. Sincerel , om Powers hair Board of Supervisors Contra Costa County TP( sh) :eh duda10 cc: Senator Rosenthal Assemblywoman Gwen Moore