Media Statement: Network use charge in General Rate Case Phase 2 proceeding

California Public Utilities Commission (CPUC) Commissioner Mark J. Ferron today issued a scoping memo laying out the issues that will be addressed in San Diego Gas & Electric’s (SDG&E) ongoing General Rate Case Phase 2 proceeding, which will establish the utility’s rate design for the next several years.  Commissioner Ferron has determined that SDG&E’s proposed “network use charge” should not be included within the scope of this proceeding. Lee Schavrien, senior vice president of finance, regulatory and legislative affairs for SDG&E has issued the following media statement in response:

In deciding not to include SDG&E’s proposed network use charge in our General Rate Case Phase 2 proceeding, Commissioner Ferron acknowledged the issue we are trying to address with our proposal is much broader than a single utility.  The fact that net energy metering customers are being subsidized by non-solar customers is not sustainable in the long term.  Not only are other investor-owned utilities in California facing the same challenges due to flaws in the current electric rate structure, other utilities across the country are wrestling with similar issues -- in Colorado, Arizona, Nevada and Virginia.  We believe the CPUC and the Legislature are concerned about the existing cross-subsidy and encourage them to take action on a proposed solution sooner rather than later. 

SDG&E recently launched a collaborative effort in San Diego with stakeholders on both sides of the solar issue to seek creative solutions to this problem.  We remain committed to this dialogue, which includes solar customers, consumer advocates, businesses, municipal agencies, and representatives of the city and county, among others. 

We will, of course, respect the Commissioner’s order to revise and re-file our application and testimony by Feb. 17, 2012.  

SDG&E supports solar access for all our customers, as clearly demonstrated by our recent filing for the “Share the Sun” and “Sun Rate” pilot programs. The major power supply transformation that is now taking place in our state requires a sustainable rate structure where all customers pay their appropriate share of infrastructure costs.  The current net energy metering structure can easily result in many customers who have rooftop solar paying no bill at all, yet having access to all of the reliability, storage and access features of the grid.  This is a situation that is not sustainable and requires a broad set of stakeholders to collaborate on a fair and effective solution.