CPUC Approves Peak Pricing Plan

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Feb. 4, 2005 Share this on FacebookTweet thisEmail this to a friend

On January 27th the California Public Utilities Commission (CPUC) approved a framework for default Critical Peak Pricing (CPP) tariffs for commercial and industrial customers (whose usage is above 200 kw).

The decision is aimed at reducing usage during peak demand periods this coming summer when supplies are expected to tighten.

Adoption and implementation of tariffs wouldn’t occur until sometime this spring, but the CPUC is clearly headed toward approving default CPP tariffs in which large users would be subject to default rate schedules and would have to pay a "risk premium" (as-yet unquantified) in order to opt-out. Moreover, based on a related CPUC ruling issued last month, there is a possibility that current interruptible programs could be scrapped and replaced with the CPP tariff, something CMTA strongly opposes.

CMTA filed comments in opposition to the proposal. For large manufacturers who cannot shift load, the mandatory tariffs will prove to be punitive and will likely harm the state’s economy. Most of CMTA’s members operate on a 24/7 basis, and therefore do not contribute to the peaks in the utility "load shapes." They are generally not able to shift load from on-peak to off-peak and should not be penalized for usage patterns that are not the source of the problem.

CMTA urges the CPUC to instead adopt the demand response and reliability programs that have been proposed by the utilities and which have been pending since last October.
Read more Energy articles

Capitol updates archive 989898989