Fair Exit Fees - What Cost to Escape?
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For Community Choice customers, the CCA program now buys their kilowatt-hours (kWh). But neither investor-owned utilities (IOU) or their remaining customers want to pay for kWh that CCA folks now get through the Choice program.
Intro to PCIA To allocate these costs fairly, CPUC created the "Power Charge Indifference Adjustment" (PCIA). The PCIA is added to the cost for the electricity CCA customers pay. This Chart shows Sonoma Clean Power 2015 rates. The line labeled "Additional PG&E fees" is the Exit Fee, PCIA. Marin Clean Energy described these fees in this handout: |
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"The PCIA, often referred to as an 'exit fee' or 'departing load charge', is the allocation of the price difference to each customer of the above market cost of power purchased on a customer's behalf prior to their departure from IOU service. California is the only state to allow these charges."
Exit Fees Matter -- a Lot Exit fees determine whether CCA customers save a little, a lot or not at all. Summer 2015, PG&E's 2016 exit fees jumped between 44 - 127%, depending on customer size. SDED and many others commented in opposition. Regrettably, at that time, the CPUC still approved those hikes. In the two years since, these issues have been the subject of a CCA-utility working group, a joint proposal to the Commission and a new (even worse) proposal from the utilities.
Update: June 2017 -- We are now pleased to report that these many discussions and comments have finally paid off. The CPUC has released a draft Order Instituting Rulemaking (OIR) to "Review, Revise, and Consider Alternatives to the Power Charge Indifference Adjustment". Hooray! This means that all the Parties will now have an opportunity to contribute to the discussion on what's wrong with the current methods of setting these exit fees and how to fix it. SDED filed a comment letter applauding the Commission's step to open this proceeding.
Of course, this is the beginning of what will surely be a long and complex process. We will continue to monitor the proceeding closely. Almost certainly there will be opportunities to comment along the way. If needed, we will put out the call for public comments.
WATCH THIS SPACE.
Update: June 2017 -- We are now pleased to report that these many discussions and comments have finally paid off. The CPUC has released a draft Order Instituting Rulemaking (OIR) to "Review, Revise, and Consider Alternatives to the Power Charge Indifference Adjustment". Hooray! This means that all the Parties will now have an opportunity to contribute to the discussion on what's wrong with the current methods of setting these exit fees and how to fix it. SDED filed a comment letter applauding the Commission's step to open this proceeding.
Of course, this is the beginning of what will surely be a long and complex process. We will continue to monitor the proceeding closely. Almost certainly there will be opportunities to comment along the way. If needed, we will put out the call for public comments.
WATCH THIS SPACE.