By Melissa Yu
As part of a statewide effort to create a cleaner energy future, all Californians are being encouraged to shift their energy use to earlier in the day, when renewable resources like solar and wind are most plentiful. Currently, many Bay Area residents are on the E-1 tiered flat-rate plan, which charges the same rate for energy use no matter the time of day. Soon, all PG&E and Community Choice Aggregation (CCA) program customers on the E-1 plan will automatically be transitioned to a time-of-use rate plan. Under this new state-regulated plan, certain hours of the day are considered more expensive “peak hours.” Peak hours are 4pm to 9pm when energy demand is high and less clean energy is available. The time-of-use plan encourages customers to reduce energy usage during these peak hours and shift some of their energy use by providing lower rates at times when energy demand is low and renewable sources are more available.
Most customers will benefit financially from time-of-use rates. Residential customers who automatically transition will receive risk-free Bill Protection for the first 12 months if they do pay more on the time-of-use rate plan than they would have on their current plan, and PG&E and CCAs will automatically credit the customer the difference for the first year. (If you live in the Bay Area and you didn’t opt out, we’re happy to report that you’re a customer of a locally run, non-profit CCA. Learn more on our CCA page.)
Benefits of Time-of-Use rates
The transition to time-of-use rates is part of a California Public Utilities Commission (CPUC) effort to support the state’s ongoing shift to cleaner energy. The state’s electrical grid is increasingly powered by clean, renewable sources of energy, especially when the sun is out and winds are high. The challenge is in the late afternoon and evening, when demand for energy peaks. Those hours tend to have the most expensive and most polluting electricity. Customers who can use less electricity during those hours can save money, and help ensure energy is coming from clean sources.
When and How Customers Will Transition
The transition to this time-of-use rate plan will occur by geographical region starting April 2021. All automatically enrolled customers will receive a series of notifications by mail and email starting four months before the automatic transition for their county. Outreach will include tips on how to manage your energy usage in the new system and a personalized rate comparison to help customers select the best rate plan for their needs. Not all customers will automatically transition, including Medical Baseline customers and those already on a time-of-use plan such as the Electric Vehicle Rate Plan.
To find out more information about when your county will transition, head to our new Time-of-Use page or email Melissa Yu at melissa.yu@sierraclub.org.
Photo credit: PG&E time-of-use rate plan hours via pge.com.