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

Background

The California Public Utilities Commission (CPUC) approved new Time-of-Use (TOU) periods for SDG&E’s electric rates that will 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

 

New TOU Periods – Effective December 1, 2017

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

 

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

*Effective December 1, 2017 all electric rates that vary by season will use the New Seasons listed above.  The legacy seasons are not included under TOU Period Grandfathering. 

Schedule NEM

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 7/31/2017.

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.

Public Agencies

The definition of Public Agency includes public schools, colleges and universities; federal, state, county and city government agencies; municipal utilities; public water and/or sanitation agencies; and joint powers authorities.

A Public Agency 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

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 12/1/17 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 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

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 Permission to Operate was issued.

If a customer receiving service under Schedule NEM-ST is billing under a TOU rate prior to December 1, 2017, the customer will automatically receive TOU Period Grandfathering for a period of up to five years from the date Permission to Operate was issued.

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.  

Public Agencies

The definition of Public Agency includes public schools, colleges and universities; federal, state, county and city government agencies; municipal utilities; public water and/or sanitation agencies; and joint powers authorities.

In order to be eligible for TOU Period Grandfathering, a customer must have submitted its initial interconnection application no later than 12/31/2017.

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

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

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.