New Electricity Pricing Proposal Can Save Californians Money, Support More Clean Energy

(San Francisco, CA – April 22, 2015) A proposed decision released yesterday by the California Public Utilities Commission (CPUC) would, if upheld, direct utility companies to reform the current tiered electricity rate structure for residential customers and open the door for greater use of time-variant, or time-of-use, electricity pricing. The decision calls on all California investor-owned utilities to move towards a two-tier pricing structure instead of the four-tier structure that currently exists today, and begin piloting time-of-use pricing programs in preparation for these programs to be the default option, starting in 2019.

 Time-of-use electricity pricing enables people to choose when they turn on appliances and other devices based on electricity prices that vary according to the time of day – allowing people to make decisions that can save money and reduce harmful pollution. EDF has long supported the more widespread use of time-of-use pricing in California as a means to integrate more renewable energy onto the power grid and help avoid the construction of unnecessary, polluting fossil fuel power plants used infrequently to meet “peak,” or high, energy demand.

 “The California Public Utilities Commission’s proposed decision sends the right signals to both utilities and consumers,” said Gavin Purchas, director of EDF’s clean energy work in California. “Broad adoption of time-of-use electricity rates can help customers use less and save more energy in addition to helping integrate large amounts of clean, renewable energy. While EDF acknowledges there’s been much debate about rate reform, particularly with respect to the tiered system, we applaud this decision. The Commission has undertaken an extensive process, listened to all sides, and come forward with a proposed decision that is crucial to keeping California on track to being the cleanest state in the nation while saving customers money.”