Timing is Everything: How California is Getting Electricity Pricing Right and Bringing Clean Power to the People

By Jamie Fine (Senior Economist, Environmental Defense Fund), EDF’s Energy Exchange blog

Anybody managing a household budget knows it pays to plan ahead. With advanced thinking we can buy favorite items with coupons, when they’re on sale, in bulk, or at the cheapest store in the area. Using the same smart shopper skills, new changes to the way utilities charge for electricity are going to give Californians another way to save money on energy bills.

In the current system, most California households’ electricity prices don’t change throughout the day. There is no option for lower prices when system demands are lower and electricity is cheap in wholesale markets. But that’s about to change, thanks to a recent 5-0 decision by the California Public Utilities Commission (CPUC).  Starting January 1, 2019, after a period of study, public outreach, and education, California’s large investor-owned utilities (Pacific Gas and Electric, San Diego Gas and Electric, Southern California Edison) will switch households to time-of-use (TOU) electricity pricing. This simplified rate structure rewards customers who shift some of their electricity use to times of the day when clean energy is plentiful. This shift to a TOU pricing regime – one of the first in the nation – is a huge win for Californians and the environment.

Read full blog post from EDF’s Energy Exchange

Comments are closed.

Post Navigation