Critical Peak Pricing
If your business is on a Time of Use Plus (CPP-D) pricing plan, it matters when you use energy — especially when we call a Critical Peak Pricing (CPP) Day.
CPP Days are called when energy demand is at its highest and can occur on any day of the week, including holidays. On a CPP Day, you'll be asked to reduce your energy use between 2 p.m. to 6 p.m. CPP is a year-round program, however most CPP Days occur between May – October and a maximum of eighteen (18) CPP Days can be called per year.
It's also important to remember that because you're on a Time of Use Plus pricing plan, the normal on-peak price is from 4 p.m. to 9 p.m. Therefore, on a CPP Day, you'll want to be extra careful to reduce your energy use during the hours of 4 p.m. to 6 p.m. when you are being charged both the on-peak price and CPP Day price for electricity.
Because you're a Time of Use Plus customer, when we call a CPP Day, you have three choices:
- Offset your energy use to another time.
- Continue to use energy like normal, and incur substantially higher prices.
- Protect a portion of your energy usage during event hours. This is known as “Capacity Reservation".
What is Capacity Reservation?
The Capacity Reservation Charge option lets you proactively reserve a given amount of electricity use (in kilowatts) that you want to protect from the high price of electricity during a CPP Day. You pay for these “protected hours” through a fixed monthly Capacity Reservation Charge (CRC). Think of it as pre-purchasing energy at your normal rate, and then having it available on an CPP Day.
You don’t have to opt-in, but if you haven't offset your energy and a CPP Day is called, your bill may be much higher.
You have three convenient options to sign up:
- Sign up in My Account.
- Contact your Account Executive.
- Call the Business Contact Center at 1-800-336-7343 for help in making CPP work for your business.
If you have multiple meters, you must submit a separate capacity reservation level for each meter
Sign Up for Alerts or Check Out Pricing Plan Options
Know when CPP Days are called by signing up to receive an email or text alert. Or check out other pricing plans to see if there is a better option for your business. Visit sdge.com/myaccount to learn more.
If you're unable to apply online, you can still make changes to your account information by providing one or more of the forms.
Frequently Asked Questions
We notify customers of Critical Peak Pricing days via text or email by 3 p.m. the day before an event is activated. If you’re enrolled, now is a good time to double-check your contact information so we’ll be able to send notice to the right place.
CPP Days may be called up to 18 times per calendar year. They can occur year-round, seven days a week from 2 p.m. to 6 p.m.
We may call a CPP Day when reductions in electricity use by customers are needed during periods of high electric demand or when electric system reliability is in jeopardy. The most common triggers are based on system load and temperature.
Other triggers can include electrical emergency alerts issued by the California Independent System Operator (CAISO) or an SDG&E system emergency that affects local grid operations.
No. Customers are not required to reduce electric load during a CPP Day. However, if your electric use is not covered through capacity reservation, all electric use during a CPP Day will be charged at a rate that is significantly higher than the normal Time-Of-Use rates. We can help you plan your demand reduction strategies ahead of time, so you can respond without major disruption to your operations when an event is called.
A CPP Day is called as the result of an electrical system emergency alert issued by the CAISO and can only be cancelled by the CAISO. For every two CPP Days cancelled by the CAISO, one CPP Day will be credited towards the maximum number of events that can be called during the year. CPP Days activated based on criteria other than electrical system emergency alerts issued by the CAISO cannot be cancelled.
SDG&E relies on forecasts so that we can give customers time to prepare for critical use periods. Because many businesses invest time and money into being able to respond to load reduction requests, we understand that it would complicate the situation to cancel a CPP Day and have the business community keep re-adjusting their operations.
SDG&E’s system load information is available on the OASIS page on the CAISO website where you can view hourly system load and forecasts for each utility’s system within the CAISO control area.
We have highly-specific information, including a breakdown with kWh prices, posted here. This is a regulatory document that may not be user-friendly to the general public.
However, if you’d like additional information about making this pricing plan work for you, Call the Business Contact Center at 1-800-336-7343 for help in making Critical Peak Pricing work for your business.