Time-of-Use Period Grandfathering for Net Energy Metering Customers

Background

Although subject to final approval from the California Public Utilities Commission (CPUC), SDG&E has proposed new Time-of-Use (TOU) periods for electric rates to become effective for customers on December 1, 2017.

TOU Period Grandfathering permits eligible customers to continue billing under existing TOU periods for a specific period of time, as described below, after new TOU Periods are implemented.

Current TOU Periods For Residential Rate Schedule DR-SES

Summer On-Peak

11 a.m. – 6 p.m. Monday through Friday, excluding Holidays

Summer Semi-Peak

6 a.m. – 11 a.m. and 6 p.m. – 10 p.m. Monday through Friday, excluding Holidays

Summer Off-Peak

10 p.m. – 6 a.m. Weekdays, and all hours on Weekends and Holidays

Winter Semi-Peak

6 a.m. – 6 p.m. Monday through Friday, excluding Holidays

Winter Off-Peak

6 p.m. – 6 a.m. Weekdays, and all hours on Weekends and Holidays

Current TOU Periods For General Service Non-Residential Rates

Summer On-Peak

11 a.m. – 6 p.m. Monday through Friday, excluding Holidays

Summer Semi-Peak

6 a.m. – 11 a.m. and 6 p.m. – 10 p.m. Monday through Friday, excluding Holidays

Summer Off-Peak

10 p.m. – 6 a.m. Weekdays, and all hours on Weekends and Holidays

Winter On-Peak

5 p.m. – 8 p.m. Monday through Friday, excluding Holidays

Winter Semi-Peak

6 a.m. – 5 p.m. and 8 p.m. – 10 p.m. Monday through Friday, excluding Holidays

Winter Off-Peak

10 p.m. – 6 a.m. Weekdays, and all hours on Weekends and Holidays

 

Seasons:
Summer May 1 – October 31
Winter November 1 – April 30

   

Proposed TOU Periods 

On-Peak

4 p.m. - 9 p.m. daily

Off-Peak

All Other Times

Super Off-Peak

12 a.m. - 2 p.m. Weekends and Holidays / 12 a.m. – 6 a.m. Weekdays

 

Proposed Seasons:
Summer June 1 – October 31
Winter November 1 – May 31

Schedule NEM – CPUC Decision D.17-01-006

Residential Customers

SDG&E is expecting the first phase of Residential Default TOU rate rollout to begin in early 2018 with full implementation completed in 2019.  With certain limited exceptions, default TOU rates will be applicable to all residential customers, including customers receiving service under Schedule NEM, that are not covered by TOU Period Grandfathering.[1]

Customers receiving service under Schedule NEM are not required to be billed under a TOU rate and will have the opportunity to opt-out of default TOU rates when they are implemented.

Customers receiving service under Schedule NEM may elect to switch and receive service under Schedule NEM-ST. 

For customers receiving service under Schedule NEM and are not already billing under a TOU rate, in order to be eligible for TOU Period Grandfathering, customers must submit a request to be billed under an optional TOU rate to SDG&E no later than 7/28/2017.

If a customer receiving service under Schedule NEM is already billing under a TOU rate and has been receiving such service for less than five years from the date the original Permission to Operate was issued, the customer will automatically receive TOU Period Grandfathering for a period of up to five years, unless the customer chooses to opt-out of TOU Period Grandfathering,

TOU Period Grandfathering begins on the date Permission to Operate was originally issued and will continue for up to five years, however, it will not extend beyond 7/31/2022.

Schedule DR-TOU was closed to new customers in January 2015.

Customers currently billing under Schedule DR-TOU will maintain their current TOU periods through 2019.

Non-Residential Customers 

A non-residential customer (excluding schools as described below) receiving service under Schedule NEM will automatically receive TOU Period Grandfathering unless the customer chooses to opt-out of TOU Period Grandfathering.

TOU Period Grandfathering begins on the date Permission to Operate was originally issued and will continue for up to ten years, however, it will not extend beyond 7/31/2027.

Customers receiving service under Schedule NEM may elect to switch and receive service under Schedule NEM-ST.

School Customers – Public and Private

A school customer receiving service under Schedule NEM will automatically receive TOU Period Grandfathering unless the customer chooses to opt-out of TOU Period Grandfathering.

TOU Period Grandfathering begins on the date Permission to Operate was originally issued and will continue for up to ten years, however, it will not extend beyond 12/31/2027.

Customers receiving service under Schedule NEM may elect to switch and receive service under Schedule NEM-ST.

Schedule NEM-ST

Residential Customers – CPUC Decision D.16-01-044

Customers receiving service under Schedule NEM-ST may choose to be billed under an applicable TOU rate at any time.  

Customers who receive Permission to Operate on or before 3/30/2018 (120 days after the effective date of SDG&E’s 2016 GRC P2 TOU rates) will have the ability to:

  1. take service under a TOU rate that uses the new TOU Periods
    or

  2. take service under tiered rates in effect at the time Permission to Operate was issued

Customers who receive Permission to Operate before the implementation of SDG&E’s 2016 GRC P2 TOU Rates (expected to be 12/01/2017) will have the ability to:

  1. take service under a TOU rate that uses the new TOU Periods 
    or

  2. take service under a TOU rate that uses existing TOU Periods in effect at the time Permission to Operate was issued 
    or

  3. take service under existing tiered rates in effect at the time Permission to Operate was issued

Final implementation of the GRC P2 TOU rates is subject to approval from the CPUC.  SDG&E has proposed that the GRC P2 TOU rates become effective on December 1, 2017.

On and after December 1, 2017, rates that use legacy TOU Periods will no longer be a rate option available for new customers that are not eligible for TOU Period Grandfathering.

Eligible customers will receive TOU Period Grandfathering for up to five years from the date their account begins billing on the TOU rate.

Customers who receive Permission to Operate after 3/30/2018 and customers switching to this schedule from a different NEM schedule are required to be billed under an applicable TOU rate and do not have the ability to opt-out to a non-TOU rate.  

If a customer does not make an election, the applicable default rate is Schedule DR-SES. 

School Customers – Public and Private – CPUC Decision D.17-01-006

In order to be eligible for TOU Period Grandfathering, a customer must have submitted its initial interconnection application no later than 1/31/2017.

The customer’s complete application, including the final electrical inspection release from the local jurisdiction, must be received by SDG&E no later than 12/29/2017.

TOU Period Grandfathering will be effective on the date the customer first receives Permission to Operate and will continue for a maximum of ten years, however, it will not extend beyond 12/31/2027.  

All other Non-residential Customers – CPUC Decision D.17-01-006

In order to be eligible for TOU Period Grandfathering, a customer must have submitted its initial interconnection application no later than 1/31/2017.

The customer’s complete application, including the final electrical inspection release from the local jurisdiction, must be received by SDG&E no later than 7/28/2017.

TOU Period Grandfathering will be effective on the date the customer first receives Permission to Operate and will continue for a maximum of ten years, however, it will not extend beyond 7/31/2027.

[1] Public Utilities Code Section 745 specifies conditions under which certain customers are exempt from default TOU rates.  Additionally, the default TOU rate requirement will not be applicable to customers billing under Schedules DM, DS, DT and DT-RV.