{"id":17116,"date":"2018-01-30T15:23:09","date_gmt":"2018-01-30T20:23:09","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=17116"},"modified":"2018-01-30T15:47:37","modified_gmt":"2018-01-30T20:47:37","slug":"utilities-planning-to-move-californians-to-time-of-use-pricing-need-solutions-for-low-income-customers","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2018\/01\/30\/utilities-planning-to-move-californians-to-time-of-use-pricing-need-solutions-for-low-income-customers\/","title":{"rendered":"Utilities planning to move Californians to time-of-use pricing need solutions for low-income customers"},"content":{"rendered":"

\"\"<\/a>By Andy Bilich<\/a>, clean energy analyst, and Jamie Fine<\/a>, senior economist<\/em><\/p>\n

Last month, all three of California\u2019s major investor-owned utilities submitted applications to the California Public Utilities Commission detailing their respective strategies for how to transition residential customers to time-of-use pricing. Time-of-use pricing<\/a>, if done right, is a low-cost strategy to help meet California\u2019s climate and clean energy goals. This innovative tool can help the state rely more on clean energy and less on fossil fuels, at the same time delaying the need for new infrastructure and reducing costs and harmful emissions. While a significant number of Californians will be able to adapt to this new pricing, the shift this summer and next will likely be more challenging for some \u2500 namely, low-income customers in hot areas of the state.<\/p>\n

Environmental Defense Fund (EDF) supports time-of-use pricing for its benefits to the environment, the electric system, and customer\u2019s pockets<\/a>. However, the utility plans have some troubling gaps that may prevent the new system working for everyone. For California to pioneer a clean economy for all, the utilities and the commission must proactively overcome barriers facing vulnerable customers who need more help adjusting to time-of-use rates.<\/p>\n

Delay proposals <\/strong><\/p>\n

The commission directed the utilities, Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E), to transition customers to time-of-use rates starting in 2019. In these most recent plans, PG&E and SCE propose delaying the roll out until 2020 and 2021, respectively. They are requesting the delays in order to further upgrade their IT systems, incorporate lessons learned from ongoing pilots, and conduct more marketing, education, and outreach.<\/p>\n

Unfortunately, it is unclear if these delays \u2013 and the extra associated costs \u2013 will help vulnerable customers enough with the transition to time-of-use pricing. If customers don\u2019t see the intended benefits from the delays, it makes sense for the utilities, and not customers (as currently proposed), to foot the bill.<\/p>\n

With that in mind, the utilities should have to demonstrate how delays, and the work they plan to accomplish during this time, ensure successful transition to time-of-use rates, particularly regarding additional effort to support low-income customers in hot climate zones.<\/p>\n

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Time-of-use rollout and ready customers<\/strong><\/p>\n

PG&E testimony [PDF] <\/a>highlights approximately 2 million low-income customers in hot areas who the utility plans to exclude from time-of-use pricing. However, there\u2019s no reason to stall transition of PG&E\u2019s remaining estimated 2.7 million customers on the original timeline, since it will deliver environmental and economic dividends immediately.<\/p>\n

Customers who meet the following criteria are ready for time-of-use pricing and should be transitioned on-time, \u00a0starting in 2019:<\/p>\n