Services of the San Francisco Public Utilities Commission Approve CleanPowerSF
Electric Home Rate Schedule
1 Yee Nwe (Ma Yee) H. Yap
Principal Revenue/Rates Analyst
01.10.2023
Agenda
1. CleanPowerSF Rates Landscape
2. CleanPowerSF Rate Schedules
3. Electric Home (E-ELEC) Rate Schedule
4. CleanPowerSF E-ELEC Generation Rates
5. E-ELEC Bill Comparison
6. Recommendation
2 CleanPowerSF Rates Landscape
• SF City Charter requirement
• rates study at least every five years by independent consultant • 2022 Power Rates Study
• CleanPowerSF’s first rates study
• completed and adopted FY 2022-23 cost of service (COS) rates in May 2022 • Key outcomes of rates study
• ensure financial sustainability: program’s COS, no longer follow PG&E • prioritize customer needs
• support City’s climate action goals
3 CleanPowerSF Rate Schedules
4 • CleanPowerSF Customers
• receive power supply (generation
services) from CleanPowerSF
• receive distribution services from
PG&E
• billed by PG&E
• CleanPowerSF suite of rate
schedules
• matches PG&E offerings
• provides alternative option of
cleaner energy for customers
Electric Home (E-ELEC) Rate Schedule
5 • California Public Utilities Commission
(CPUC) Decision 21-11-016: ordered
new electric home rate for residential
customers
• Qualifying if customer has:
• electric vehicle (EV)
• energy storage
• electric heat pump for water heating or
climate control
• PG&E opened E-ELEC rate schedule
with final rates on December 1, 2022
• Supports residential electrification:
• reduce volumetric delivery charges
• replace a portion of delivery charges with
flat monthly fee
CleanPowerSF E-ELEC Generation Rates
Methodology
6 • CleanPowerSF sets generation rates for its customers • Propose CleanPowerSF FY 2023-24 COS rates in Spring
• Interim FY 2022-23 rates methodology:
• apply time-of-use ratio of PG&E’s residential E-ELEC rates and its standard Electric E-1 rates to CleanPowerSF’s standard E-1 rates PG&E E-ELEC rates / PG&E E-1 rate = E-ELEC Ratio
CleanPowerSF E-1 rate x E-ELEC Ratio = CleanPowerSF E-ELEC rates Note: PG&E rates effective as of December 1, 2022
E-ELEC Bill Comparison – High Usage
7 Assumes 650 kWh monthly usage. Customers’ bills on time-of use rates can vary significantly based on usage patterns.
E-ELEC Bill Comparison – Low Usage
8 Assumes 249 kWh monthly usage. Customers’ bills on time-of use rates can vary significantly based on usage patterns.
Recommendation
• Approve FY 2022-23 CleanPowerSF E-ELEC Rate
Schedule
• supports City’s Climate Action Plan
• provides alternative power supply choice to customers • prevents opt-outs
• Apply to bills of CleanPowerSF customers who voluntarily sign up for E-ELEC rate schedule since PG&E’s offering
on December 1, 2022
9 E-ELEC Generation Rates
($/kWh)
Peak
(4 pm-9 pm)
Partial Peak
(3 pm-4 pm and
9 pm-12 am)
Off Peak
(all other hours)
Summer (Jun-Sep) $0.25923 $0.16515 $0.12234
Winter (Oct-May) $0.10532 $0.08637 $0.07369
Thank You
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
DEPARTMENT Financial Services AGENDA NO. 11
MEETING DATE January 10, 2023
APPROVAL:
COMMISSION
SECRETARY Donna Hood
Public Hearing: Approve CleanPowerSF Electric Home (E-ELEC) Rate Schedule: Regular Calendar
Project Manager: Yee Nwe (Ma Yee) H Yap
Summary of
Proposed
Commission
Action:
Public Hearing: Discussion and possible action to approve the Electric Home (E-ELEC) rate schedule for customers of the San Francisco Public Utilities Commission’s CleanPowerSF Community Choice Aggregation Program. This action constitutes the Approval Action for the Project for the purposes of the California Environmental Quality Act ( CEQA) pursuant to Section 31.04(h) of the San Francisco Administrative Code .
The Planning Department has determined that this action i s exempt from the CEQA. If the item is approved, the Commission will rely on that determination to make its decision.
Background: FY 2022-23 CleanPowerSF Rates Landscape
Retail utility rates are set by the Commission pursuant to the San Francisco Charter Section 8B.125. As required by t he Charter, an independent 2022 Power Rates Study was recently completed , and FY 2022 -23 CleanPowerSF retail rates based on cost of service
were approved in
Resolution 22-0094 on May 24, 2022. One of the outcomes of this power rates study was to set CleanPowerSF rates once per fiscal year to the program’s own cost of service, no longer follow ing Pacific Gas and Electric Company (PG&E) rate changes.
As required by state law, Cl eanPowerSF’s customers receive retail distribution service from PG&E and are billed for CleanPowerSF and PG&E service by PG&E . CleanPowerSF customers select service from PG&E’s retail distribution rate offerings. This means CleanPowerSF’s suite of generation rate offerings must align with PG&E’s distribution rate offerings. This alignment ensures that customers who are interested in a PG&E rate choice have a corresponding option with CleanPowerSF, and do not need to opt- out of the CleanPowerSF program
to access their
desired rate offering.
New Pro-Electrification Electric Home E-ELEC Rate Summary
The California Public Utilities Commission (CPUC) directed PG&E in Public Hearing: Approve CleanPowerSF E-ELEC Electrification Rate Schedule Commission Meeting Date: January 10, 2023
Decision (D.) 20 -03-003 to propose a residential pro -electrification rate schedule during PG&E’s consolidated 2018 Rate Design Window proceedings. In D. 21-11-016, the CPUC approved a new pro- electrification rate for residential customers with qualifying electric technologies. PG&E filed Advice Letter 6690 -E with the CPUC in September 2022, making public its proposed rate structure and tentative rates for the new rate schedule, E- ELEC. This pro-electrification E-ELEC schedule with final rates was effective and became available to PG&E customers on December 1, 2022.
The E-ELEC rate schedule supports the goal of electrification by reducing volumetric delivery charges due to increased electricity usage and replacing a portion of the volumetric delivery charges with a flat monthly fee, currently set at $15 for PG&E customers.
Residential customers with at lea st one of the following technologies are eligible to subscribe to the E-ELEC rate schedule:
• Electric vehicle (EV)
• Energy storage
• Electric heat pump for water heating or climate control (i.e., space heating and/or cooling).
The current E-ELEC rate implementation excludes Net Energy Metering (NEM) customers due to the complexities of PG&E’s billing system.
PG&E plans to extend this E -ELEC rate to NEM customers in the second phase, targeting the end of 2023.
CleanPowerSF E-ELEC Rate Schedule
Staff recommend offering CleanPowerSF E-ELEC generation rates to not only provide an alternative service to residential customers who subscribe to the E-ELEC schedule and desire to remain with or choose CleanPowerSF for its power supply source , but also to support the City’s Climate Action Plan 2021 goal to reduce emissions by moving away from natural gas use toward higher renewable electricity use in homes and businesses.
Since E-ELEC rate is a new optional residential electric schedule with no customer data, cost of service rates will follow in Spring with CleanPowerSF FY 2023-24 rates proposal. In the interim for FY 2022 -23, staff propose to implement E -ELEC rates that ar e proportiona lly scaled from other cost of service- based CleanPowerSF residential rates.
Specifically, E-ELEC generation rates will be calculated by applying the time-of-use differential s of PG&E’s residential E-ELEC generation rates and its standard resid ential Electric E -1 generation rates to CleanPowerSF’s standard E -1 Residential Services generation rates. With Public Hearing: Approve CleanPowerSF E-ELEC Electrification Rate Schedule Commission Meeting Date: January 10, 2023
the proposed CleanPowerSF E -ELEC generation rate s, an average CleanPowerSF E-ELEC customer will see about 3% savings on the total electricity bill compared to a PG&E customer.1
Staff recommend approving the new CleanPowerSF E- ELEC generation rate schedule as follows.
E-ELEC
Generation Rates
($/kWh)
Peak
(4 pm-9 pm)
Partial Peak
(3 pm-4 pm and
9 pm-12 am)
Off Peak
(all other hours)
Summer (Jun-Sep) $0.25923 $0.16515 $0.12234
Winter (Oct-May) $0.10532 $0.08637 $0.07369
Since PG&E made the E -ELEC rate available for subscription beginning December 1, 2022 , staff propose s the above pro -electrification residential E-ELEC rates be retroactively applied to CleanPowerSF customer s, beginning from the date they voluntarily signed up for E- ELEC with PG&E. CleanPowerSF staff have worked with the program’s billing agent Calpine Energy Solutions to create a holding pool of customers who opt into the E-ELEC rate schedule with the ability to apply the Commission- approved rates, if adopted, to participating customers’ bills.
Public Hearing Notice
Pursuant to Charter Section 16.112, a Notice of Public Hearing on the establishment of a schedule of rates was published in the official newspaper on December 21, 22, 23, 28 and 29, 2022 , on the SFPUC website, and at the San Francisco Public Library, for a public hearing on January 10, 2023.
Board of Supervisors Review
Pursuant to Charter Section 8B.125, Commission action adopting rates, including provisions for future periodic adjustments, is subject to rejection by the Board of Supervisors within 30 days of submission to the BOS.
This pro-electrification Electric Home (E -ELEC) rate schedule will apply to bills of CleanPowerSF customer s who voluntarily subscribe to the E - ELEC rate schedule with PG&E, beginning on December 1, 2022, and will
1 Bill comparison uses PG&E E-ELEC rates effective as of December 1, 2022 and CleanPowerSF E-EV2 average customer profile. E-ELEC is a new rate schedule for CleanPowerSF with no customer data currently. E-EV2 customers make up a subset of customers who qualify for E-ELEC schedule, and E-ELEC schedule offers the same time-of-use hours as E-EV2. Savings can vary with a customer’s usage profile.
Public Hearing: Approve CleanPowerSF E-ELEC Electrification Rate Schedule Commission Meeting Date: January 10, 2023
remain effective until revised.
Budget & Costs: There is no impact on the CleanPowerSF Budget.
Environmental
Review:
On December 20, 2022 the San Francisco Planning Department determined the Project to be statutor ily exempt from environmental review under CEQA Section 21080(b)(8) and CEQA Guidelines S ection 15273 (Rates, Tolls, Fares and Charges) (Case Number 2022-012336ENV) related to the establishment, modification, structuring, restructuring, or approval of rates, tolls, f ares, or other charges . The exemption can be found here:
https://sfpuc.sharefile.com/d-sccb5b7fbc1174089a3f86c12e55b98e7 This action constitutes the Approval Action for the Project for the purposes of the CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code.
Result of
Inaction:
Not approving this item will result in opt-outs by CleanPowerSF customers who wish to subscribe to PG&E’s E-ELEC rate schedule.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO: ____________________
WHEREAS, In accordance with Section 8B.125 of the Charter of the City and County of San Francisco, the Commission retained an independent rate consultant, NewGen Strategies & Solutions, which completed the 2022 SFPUC Power Rates Study in Spring 2022; and WHEREAS, The Commission approved CleanPowerSF FY 2022 -23 electric rates recommended in the 2022 SFPUC Power Rates Study in Resolution 22- 0094 on May 24, 2022; and
WHEREAS, In furtherance of the City’s Climate Action Plan objective to shift to a 100% renewable energy supply and decarbonize home energy use generally, staff propose creating a CleanPowerSF generation rate schedule as a companion to the pro-electrification residential Electric Home (E-ELEC) distribution rate schedule that PG&E has made available to customers beginning December 1, 2022; and
WHEREAS, FY 2023-24 CleanPowerSF E-ELEC cost-of-service generation rates will be proposed to the Commission as part of the annual rates package in Spring 2023; and WHEREAS, Staff propose an interim FY 2022- 23 CleanPowerSF E- ELEC generation rate schedule to be calculated based on a proportional scaling from existing CleanPowerSF cost - of-service residential generation rates; and
WHEREAS, The Rate Fairness Board reviewed the methodology and the recommended proposal of CleanPowerSF generation rates for the pro -electrification residential E -ELEC rate schedule on January 06, 2023; and
WHEREAS, Pursuant to the published notice of the intention of the Public Utilities Commission to adopt the pro-electrification residential CleanPowerSF E-ELEC rate schedule, a public hearing was held on January 10, 2023, and members of the public were given an opportunity to express their views on the methodology and proposal of FY 2022- 23 interim CleanPowerSF E-ELEC rate schedule; and
WHEREAS, Pursuant to Charter Section 16.112, a Notice of Public Hearing on the establishment of a schedule of rates was published in the official newspaper on December 21, 22, 23, 28 and 29, 2022, on the SFPUC website, and at the San Francisco Public Library, as required, for a public hearing on January 10, 2023; and
WHEREAS, This Commission hereby finds that adoption of this resolution will establish generation rates for the pro-electrification residential CleanPowerSF E-ELEC rate schedule in support of clean energy and the City’s Climate Action Plan; and
WHEREAS, This Commission hereby finds that adoption of this resolution will establish rates for the purpose of: Meeting operating expenses, including employee wage rates and fringe benefits; Purchasing or leasing supplies, equipment, or materials; Meeting financial reserve needs and requirements, Obtaining funds for capital projects necessary to maintain service within existing service areas; and Obtaining funds necessary to maintain such intra -city transfers as are authorized by the City’s Charter; and
WHEREAS, On December 20, 2022 the San Francisco Planning Department determined the Project to be statutorily exempt from environmental rev iew under California Environmental Quality Act ( CEQA) Section 21080(b)(8) and CEQA Guidelines Section 15273 (Rates, Tolls, Fares and Charges) (Case Number 2022-012336ENV) related to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges; and WHEREAS, This action constitutes the Approval Action for the P roject for the purposes of the CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code; and
WHEREAS, Charter section 8B.125 requires the Commission to set rates and charges, subject to rejection by the Board of Supervisors, within 30 days of submission; now, therefore be it
RESOLVED, This Commission hereby adopts the below CleanPowerSF E-ELEC generation rate schedule; and be it
FURTHER RESOLVED, That the CleanPowerS F E-ELEC rate schedule shall apply to bills for CleanPowerSF customer s who subscribe to the E -ELEC rate schedule with PG&E, beginning from the date they subscribed to PG&E’s E- ELEC rate, but no earlier than December 1, 2022.
E-ELEC
Generation Rates
($/kWh)
Peak
(4 pm-9 pm)
Partial Peak
(3 pm-4 pm and
9 pm-12 am)
Off Peak
(all other hours)
Summer (Jun-Sep) $0.25923 $0.16515 $0.12234
Winter (Oct-May) $0.10532 $0.08637 $0.07369
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 10, 2023.
______________________________________
Secretary, Public Utilities Commission