Archive for the ‘Energy’ Category

Californians face higher electricity rates based on income

Saturday, March 16th, 2024

For households earning $28K per year or more; unless state legislature reverses course; 5 local legislators voted for bill

By Allen D. Payton

Bill Votes – AB-205 Energy. (ca.gov)

In 2022, the California legislature passed and Governor Gavin Newsom signed AB205 – Energy into law, which requires that the Public Utilities Commission (CPUC) “shall, no later than July 1, 2024, authorize a fixed charge for default residential rates.” As a result, the CPUC is currently reviewing proposals for a tiered, fixed-price structure, as directed by the bill.

According to FOX Business, the state’s three main, investor-owned utilities – Pacific Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E) – proposed a tiered rate plan: “Households earning $28,000-$69,000 would be charged an extra $20 to $34 per month. Those earning $69,000-$180,000 would pay $51 to $73 per month, and those earning more than $180,000 would pay a $85-to-$128 monthly surcharge.”

According to California Energy Markets, “The first version of the income-graduated fixed charge, or IGFC, could be implemented by SDG&E and SCE by 2026, according to Freedman. PG&E is in the process of changing its billing system, he said, so its implementation would likely be in 2027.”

That’s on top of the 13% increase for both electricity and natural gas rates for PG&E customers approved by a unanimous vote of the CPUC last November that went into effect on January 1, 2024. Plus, another vote on March 7 for $4-$6 in additional monthly fees for the typical ratepayer that will take effect in April, was approved for PG&E to recover $516 million in costs for wildfire mitigation, gas safety and electric modernization.

According to a Canary Media report, “The utilities are also proposing to significantly lower the per-kilowatt-hour charges that customers pay to counterbalance the big increase in fixed charges, and to structure both fixed and volumetric charges in a way that allows lower-income customers to save money overall. Still, the proposal, if enacted, would instantly make California the home of the nation’s highest monthly utility fixed fees, according to analysis by clean energy research firm EQ Research.”

The IGFC would require the CPUC to evaluate every ratepayer’s income annually in order to assess the appropriate fee.

Local Legislators Voted for Bill

Five of Contra Costa’s state legislators supported AB205 on party-line votes including Assemblymembers Tim Grayson, Rebecca Bauer-Kahan, Buffy Wicks, Lori Wilson and State Senator Nancy Skinner. The first four each voted for the bill, twice.

Assemblyman Jim Frazier didn’t vote on the bill in 2021 and State Senator Steve Glazer didn’t vote on AB205 during the State Senate’s floor vote in 2022. Newsom signed the bill into law on June 30, 2022.

Details of New Law

As of July 1, 2022, the applicable portion of the law now reads as follows:

SEC. 10. Section 739.9 of the Public Utilities Code is amended to read:

(d)  The commission may adopt new, or expand existing, fixed charges for the purpose of collecting a reasonable portion of the fixed costs of providing electrical service to residential customers. The commission shall ensure that any approved charges do all of the following:

    (1) Reasonably reflect an appropriate portion of the different costs of serving small and large customers.

    (2) Not unreasonably impair incentives forconservation, energy efficiency, and beneficial electrification and greenhouse gas emissions reduction. 

    (3) Are set at levels that do not overburden low-income customers.

(e)(1) For the purposes of this section and Section 739.1, the commission may authorize fixed charges for any rate schedule applicable to a residential customer account. The fixed charge shall be established on an income-graduated basis with no fewer than three income thresholds so that a low-income ratepayer in each baseline territory would realize a lower average monthly bill without making any changes in usage. The commission shall, no later than July 1, 2024, authorize a fixed charge for default residential rates.

    (2) For purposes of this subdivision, ‘income-graduated’ means that low-income customers pay a smaller fixed charge than high-income customers.”

Source: Energy Sage published 3/10/24

Californians Pay 27% More for Electricity Than National Average

According to Energy Sage, California residents currently pay 31 cents per kilowatt-hour compared to the national average of 18 cents per kilowatt-hour. “On average, California residents spend about $256 per month on electricity. That adds up to $3,072 per year. That’s 27% higher than the national average electric bill of $2,426.” 

Effort to Reverse Course

Now, some members of the legislature are trying to backpedal on their votes and stop the IGFC increases from being approved. As they had unsuccessfully attempted last September, on Jan. 30, Republican lawmakers tried to bring an immediate vote to repeal AB 205 to the Senate floor, but Democrats who have the majority, voted to table the motion.

That same day, Assemblymember Jacqui Irwin, (D-Thousand Oaks) and 10 others introduced a bill to repeal AB205. According to Irwin’s press release about the new bill, “The CPUC has had the authority to implement a fixed rate charge, up to $10, since 2015, but has declined to do so. I see no need to rush now. It’s time to put some reasoning back into how we charge for electricity in California.” Bauer-Kahan is listed as a principal coauthor. It was also introduced in the State Senate.

According to the aforementioned Canary Media report, “The newly introduced bill, AB 1999, would limit the CPUC to adding a fixed charge of no greater than $10 a month on customers’ bills to pay for the rising costs of maintaining the state’s utility grids, regardless of household income.”

The bill is in the committee process, was referred to the Assembly Committee on Utilities and Electricity. If approved it will then head to the floors of both houses of the state legislature for votes and if passed, the bill will head to the governor’s desk for his signature or veto.

Natural gas ban lifted for new buildings in Contra Costa County

Wednesday, February 28th, 2024

Supervisors suspend all-electric requirements following U.S. Court of Appeals ruling

(Martinez, CA) – The Contra Costa County Board of Supervisors Tuesday suspended enforcement of its requirement that most new buildings be constructed as all-electric buildings.  The County’s all-electric building requirement, as part of the County’s building code, had prohibited the installation of natural gas infrastructure in most new buildings and required developers to use electricity as the sole source of energy in the building.  With Tuesday’s action, the County’s all-electric building requirement will not be enforced.

Last month, the U.S. Court of Appeals for the Ninth Circuit invalidated a City of Berkeley ordinance that prohibited natural gas infrastructure in new buildings. The court held that the federal Energy Policy and Conservation Act precludes cities and counties from adopting building codes that prohibit the installation of gas plumbing in buildings.

Contra Costa County’s all-electric building requirement, like the invalidated City of Berkeley ordinance, prohibits the installation of gas plumbing in new buildings.  The County is therefore suspending this requirement in response to the Ninth Circuit’s decision.

At the same time, the Board of Supervisors remains committed to the goals that prompted it to adopt the all-electric requirement: improving public health and fighting what they believe contributes to climate change. The Board referred the topic of reducing greenhouse gas emissions from buildings to its Sustainability Committee and directed staff to report on alternatives for advancing this objective at the Committee’s next meeting.

“Contra Costa County remains committed to reducing the use of fossil fuels in buildings and continues to support the construction of new buildings using all-electric technologies,” said Board Chair Federal D. Glover, District 5 Supervisor.  “We are eager to identify new and innovative ways to continue to pursue our goal of reducing greenhouse gas emissions from buildings.”

The County encourages residents and businesses to continue to install all-electric building systems and appliances. There are many benefits of all-electric construction, some of which include:

  • Cleaner air and better health outcomes from eliminating the emissions associated with burning fossil fuels, particularly indoors.
  • Not having to pay to install gas pipes in new buildings.
  • Taking advantage of financial incentives and rebates for all-electric appliances.
  • Resilience against power outages, particularly when electric technologies are paired with battery storage.
  • Hedging against high electricity costs by being able to schedule electric appliances to operate at times of day when electricity costs are lowest.
  • Preparing for the potential discontinuation of gas appliances in the future that could occur from possible regulatory actions by regional, state, or federal agencies.

There are many good resources on the benefits of all-electric buildings, including:

The County’s sustainability web site has information on state and federal incentives, rebates, and other ways to fund all-electric upgrades.

The Bay Area Regional Energy Network has information on training opportunities, rebates and incentives, and contractors.  

MCE, the community choice energy provider for most of Contra Costa County, offers rebates and incentives.

The Switch Is On, sponsored by the Building Decarbonization Coalition, is a collaborative campaign to support all-electric home conversion by providing tools, support, and resources to Californians.

Rewiring America provides information about the benefits of all-electric technologies, and helps generate a personalized plan for individuals, including costs and savings.

PG&E also has resources on all-electric buildings, including rebates, incentives, rate plans, and design guides.

Allen D. Payton contributed to this report.

Antioch Council approves redevelopment of PG&E Service Center

Friday, February 16th, 2024
Rendering of the new PG&E Antioch Service Center Project building. Source: City of Antioch

By Allen D. Payton

During their meeting on Tuesday, February 13, 2024, the Antioch City Council approved the redevelopment of the PG&E Service Center on Hillcrest Avenue on a 3-0 vote with Mayor Pro Tem Monica Wilson and District 2 Councilman Mike Barbanica absent. The project includes a new operations building, fleet maintenance, logistics shops and warehouse, warehouses, material storage and support structures. (See Agenda Item 3)

PG&E Antioch Service Center site location map. Source: City of Antioch

Located on 36.39 acres of the existing 56.15-acre parcel at 2111 Hillcrest Avenue just north of the Sunset Drive and Slatten Ranch Road intersection, as well as the Union Pacific Railroad railroad right-of-way and the Antioch BART station.

The proposed project involves the replacement and demolition of four existing buildings within the existing PG&E Service Center (Fleet Maintenance, Logistics Warehouse, Logistics Shops, and Operations buildings). Additionally, the proposed project would include the construction of new non-occupied support structures, a below grade parking area, circulation improvements, expansion of paved surfaces, and expansion of lighting infrastructure.

PG&E Antioch Service Center Project Phasing Plan. Source: City of Antioch

During the Planning Commission meeting on Jan. 17, 2024, Brett Badelle, Local Government Affairs Representative for PG&E stated the Antioch service center would improve service to customers, add beautification and have a positive impact on the economy. He also explained that the project would improve safety, reliability, resiliency and sustainability. On a 4-0 vote with two members absent and one vacancy, the commissioners recommended the council approve the project.

Antioch Planning Commission approves city’s first hydrogen fuel dispensing facility

Tuesday, February 13th, 2024
Rendering of the approved hydrogen fuel dispensing facility planned for the Chevron station on A Street. Source: City of Antioch

Two dispensers will serve fuel-cell electric vehicles.

By Allen D. Payton

At their Jan. 17, 2024, meeting, the Antioch Planning Commission approved the use permit for a hydrogen fuel dispensing facility by Chevron at the existing gas station at 2413 A Street. The two hydrogen dispensers will serve fuel-cell electric vehicles.

Under agenda Item 7-1, Chevron requested a Use Permit, Variance and Design Review approval for a hydrogen fuel dispensing facility which will consist of hydrogen storage, associated equipment, two hydrogen dispensers located under a canopy, new landscaping, and stormwater control facilities. A variance is requested to reduce the minimum setback requirements of the canopy from 20 feet to 10 feet.

Eric Snelling, Senior Principal Planner for Stantec Consulting Services, gave a PowerPoint presentation of the hydrogen program, project overview, safety systems and operational components. He stated that Chevron was excited to bring hydrogen fueling to Antioch.

According to the City staff report on the item, “The hydrogen fuel dispensing facility does not involve the use of hazardous substances and is not in an environmentally sensitive area.”

The proposed project consists of the construction of a hydrogen fueling station at the eastern portion of the existing Chevron gas station. The project will provide two hydrogen dispensers under a new canopy, hydrogen storage and compression compound, a hydrogen offload panel and new electrical service. The compound will be enclosed by a combination of concrete masonry block wall and louvered metal fencing. The new enclosed area will cover approximately 1,750 square feet. Additionally, the project includes paving areas that are currently gravel, and installing new frontage landscaping.

Perspective view of Chevron Hydrogen Fuel Dispensing Facility equipment. Source: City of Antioch

The hydrogen fueling station would operate during the hours of the existing convenience store and gas station. Cars that use hydrogen to operate are called fuel-cell electric vehicles (FCEVs). FCEVs are similar to electric vehicles except that they get their power from hydrogen. Like electric vehicles, they use an electric motor instead of an internal combustion engine like gasoline powered vehicles. While electric vehicles run on batteries that need to be plugged in for recharging FCEVs generate their own electricity onboard in their fuel cells. Within a fuel cell, hydrogen is combined with oxygen (O2) from ambient air. The process generates electricity, heat, and water as its byproducts. As a result, it can power the electric motor without any greenhouse gas emissions. The only emissions released from the vehicle are water and heat.

Fueling an FCEV is similar to fueling a gasoline powered vehicle. First, tanker trucks designed to deliver gaseous hydrogen arrive at the site. At first, it is anticipated that this would occur approximately once a week but would increase as FCEVs become more common. At most, vehicles would make one delivery a day. Gaseous hydrogen is delivered from the truck through a connection to the supply cabinet. The system then transfers the gas to the storage tubes. When a vehicle arrives, the station module transfers the hydrogen from the storage tubes to the dispenser. The storage module is connected to and controlled by the station module via valve panels. The valve panel has a built-in jet fire protection panel, double block and bleed valves and other safety features. The equipment required for fueling is integrated into the station module, which is also connected to the dispenser. The dispenser looks similar to a standard gasoline dispenser but is about one third the footprint because only type of hydrogen is dispensed, as opposed to various grades of gasoline. The dispenser includes safety features that detect physical problems and would automatically shut off.

H2Station Site Elements. Source: City of Antioch

Why is Chevron Developing H2 Stations?

According to Chevron’s presentation, the company is developing H2 stations “To meet the California Air Resource Board Low Carbon Fuel Standards and to support Advanced Clean Fleets. Through its AB 8 program, the State of California co-funds the deployment of at least 100 hydrogen fueling stations to enable the launch of a consumer FCEV market. CARB provides annual evaluations of the status of deployment of fueling stations and FCEVs and analysis of needs for further development. CARB also coordinates with the California Energy Commission to annually report on the progress metrics of the Commission-led station funding program. In order to develop its recommendations for areas that require further hydrogen station development, CARB developed the California Hydrogen Infrastructure Tool (CHIT), a geospatial analysis tool built on publicly vetted data and methodologies.”

According to the U.S. Department of Energy, “California is leading the nation in building hydrogen fueling stations for FCEVs. As of mid-2021, 47 retail hydrogen stations were open to the public in California, as well as one in Hawaii, and 55 more were in various stages of construction or planning in California. These stations are serving over 8,000 FCEVs.

California continues to provide funding toward building hydrogen infrastructure through its Clean Transportation Program. The California Energy Commission is authorized to allocate up to $20 million per year through 2023 and is investing in an initial 100 public stations to support and encourage these zero-emission vehicles.”

Planning Commissioners Vote 4-0 to Approve

In response to questions by commissioners, Snelling explained that the hydrogen fueling network was guided by the state air resources board program and they looked at existing assets that could accommodate the use and provide adequate supply. He also stated there were no other hydrogen stations in Antioch and noted the idea was to bring in hydrogen based on demand.

The Planning Commission members present unanimously adopted a resolution approving the Use Permit, Variance, and Design Review application subject to the attached conditions of approval (DR20230006, UP-2023-0003, VAR2023-0008) with the additional condition of approval, including to direct the applicant to work with staff regarding native plant species as well as the addition of native plant species and vegetation to the screen wall.

The motion carried the following vote:

AYES: Jones, Hills, Lutz, Riley; NOES: None; ABSTAIN: None; ABSENT: Martin, Gutilla

State Public Utilities Commission approves 12.8% PG&E rate increase

Friday, November 17th, 2023

Claims typical residential customer will pay $32.62 more for combined monthly electric and natural gas bill beginning January 1, 2024.

By CPUC

The California Public Utilities Commission (CPUC) on Thursday, Nov. 16, 2023, resolved Pacific Gas and Electric Company’s (PG&E) General Rate Case (GRC), which covers its operational and infrastructure revenue requirement for 2023-2026. The decision marks a crucial step in fortifying the future of California’s electric grid while prioritizing customer affordability.

Based on the evidence presented, the CPUC today unanimously approved the Alternate Proposed Decision of Commissioner John Reynolds. This decision approves investments in the safety and reliability of PG&E’s energy services. Inflation and a significant investment in undergrounding electric lines ranked among the top drivers in PG&E’s request. Over the past year and a half, numerous parties reviewed PG&E’s GRC request and provided input on each cost category and related proposed expenditures.

“I am proud of today’s decision because it represents the CPUC’s commitment to finding a reasonable balance in the face of incredibly challenging circumstances and competing objectives,” said Commissioner John Reynolds, who is assigned to the proceeding. “This decision ultimately represents both an historic investment in PG&E’s electric and natural gas systems as well as an expectation that PG&E must continue to be safer and more efficient. I am grateful to the many parties, and the scores of CPUC staffers, for their help as we grappled with this decision.”

Today’s decision propels PG&E’s energy infrastructure and operations into the future, addressing critical objectives such as mitigating wildfire risk, enhancing safety and reliability, and anticipating evolving electric grid demands. This comprehensive approach not only ensures PG&E’s capacity to maintain a safe and reliable energy system with a dedicated workforce, but also positions California for a more resilient energy future in the face of climate change. Moreover, the decision reflects rigorous oversight over hundreds of programs, and reduces PG&E’s request to more accurately reflect forecasts for prudent use of ratepayer funds.

Among the key initiatives covered in the decision:

  • Wildfire System Enhancement and Undergrounding
    • Approves 1,230 miles of electric line undergrounding, as well as 778 miles of covered conductor, totaling 2,008 hardened miles. This represents an historic opportunity for PG&E to invest in safer, reliable improvements for its customers while also achieving economies of scale to drive down costs; the revised undergrounding total also provides PG&E with a bridge to a future phase of undergrounding planning, through the Senate Bill 884 program.
  • Vegetation Management
    • Approves PG&E investing approximately $1.3 billion in vegetation management to reduce wildfire ignition risk and improve reliability on PG&E’s electrical system.
  • Capacity Upgrades
    • Approves PG&E investing more than $2.5 billion in upgrading the electric distribution system from 2023-2026, which will help prepare the grid to support initiatives for enhanced building electrification and new interconnections for electric vehicle charging stations and new housing and businesses.

“Today’s decision balances a myriad of competing interests—affordability, feasibility, safety, and reliability,” said CPUC President Alice Reynolds. “And in the face of increasingly turbulent climate-driven weather events, it gives PG&E the opportunity to prove it can underground electric lines at scale.  This will allow PG&E to achieve economies of scale, drive down costs, and reduce wildfire risk.”

Setting the pathway for critical investments in PG&E’s system

For PG&E customers, this approval by the CPUC translates to a continued commitment to safe, reliable, and affordable energy services. The GRC ensures that every dollar invested contributes to more resilient energy infrastructure, offering customers lasting benefits. Moreover, stringent accountability measures are embedded within the decision, assuring customers that their investment yields tangible and accountable improvements in PG&E’s operations and services.

PG&E requested $15.4 billion for 2023; Thursday’s decision cut that amount substantially, by $1.8 billion. Today’s decision sets the 2023 revenue requirement at $13.5 billion, reflecting an 11 percent increase from the authorized 2022 revenue requirement. For the typical residential customer, their combined monthly electric and natural gas bill will increase by $32.62 or 12.8 percent, compared to PG&E’s request of $38.73 or 17.9 percent increase.

PG&E’s 2022 Authorized Revenue Requirement Proposed 2023
Revenue Requirement
Percent IncreaseDollar Increase
$12.2 billionPG&E Request$15.4 billion26%$3.2 billion
Decision$13.5 billion11%$1.3 billion

Customers can expect any changes to their bill to go into effect on January 1, 2024.

For further information on the proceeding, including today’s decision and a fact sheet, please visit the CPUC’s website.

About the California Public Utilities Commission

The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians access to safe and reliable utility infrastructure and services. Visit www.cpuc.ca.gov for more information.

Hundreds plan to rally in S.F. Thursday to stop CPUC’s latest solar tax proposal

Tuesday, May 31st, 2022

“Don’t Tax the Sun” event is part of the largest ever submission of live and video-recorded public comments in CPUC history

Organizers claim tax will boost utility profits at the expense of clean energy needs 

San Francisco—Hundreds of solar workers, consumers, clean energy advocates, community leaders, conservationists, and climate activists will join together at the California Public Utilities Commission (CPUC) headquarters building in San Francisco on Thursday to protest the CPUC’s latest proposal to tax rooftop solar and drastically reduce the credits consumers receive for selling their solar energy back to the grid.

After a brief rally, solar supporters will line up to give public comments during the CPUC meeting. In Los Angeles, another thousand solar supporters will record their video testimonials to submit to the CPUC. Combined, Thursday’s actions are expected to be the largest ever submission of live and video-recorded public comments in CPUC history.

  • WHAT: 500+ ‘Don’t Tax the Sun’ rally and largest ever CPUC public comment submission
  • WHEN: Thursday, June 2 at 11:00am PDT
  • WHERE: CPUC headquarters at 505 Van Ness Avenue in San Francisco where the CPUC will be opening its doors to in-person public comment.
  • WHO:  Large and diverse coalition of solar supporters.
  • VISUALS: Rally and more than 500 solar supporters lined-up to give public comments wearing bright red ‘Don’t Tax the Sun’ tee-shirts with signs and banners.

The CPUC is currently considering changes to “net energy metering,” the state policy that makes rooftop solar more affordable for consumers of all types by compensating them for the excess energy they produce and share with their neighbors. Currently 1.5 million consumers use net metering, including thousands of public schools, churches and affordable housing developments, and it is the main driver of California’s world-renowned rooftop solar market. As a result of net metering, working and middle class neighborhoods are just under half of the rooftop solar market and the fastest growing segment today.

Big utilities want to change the rules in their favor in order to eliminate a growing competitor, keep consumers stuck in utility monopolies, and maintain the need for costly and often dangerous transmission lines that are a key driver of utility profits and ratepayer costs.

Despite the overwhelming popularity of rooftop solar and net metering in California, the CPUC is considering a proposed decision, favored by investor-owned utilities, to implement a monthly solar penalty tax while also slashing credits consumers receive for their excess solar energy.

The CPUC had previously proposed a similar steep tax on rooftop solar and an immediate gutting of the credits of solar consumers. The unpopular proposed decision was shelved for an indefinite amount of time earlier this year after intense backlash and public disapproval from Governor Newsom. The CPUC’s recent ruling to re-open its net energy metering procedures seems again to be pursuing a tax, this time hidden and under a different name.

By contrast, solar supporters want to keep solar growing and affordable for all types of consumers, ensure California remains on track with its clean energy and land conservation goals, and accelerate the growth of solar plus storage to build a more resilient electric grid.

About Save California Solar

Save California Solar is a coalition formed to help ensure that rooftop solar continues to grow and benefit every Californian. Save CA Solar includes more than 600 diverse organizations and helped generate 150,000+ public comments submitted in support of net metering ahead of the CPUC proposed decision. Learn more at www.savecasolar.org.