Recovering System Capacity Costs: Generation and Transmission - - PowerPoint PPT Presentation

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Jan 07, 2024 162 likes •225 views

Recovering System Capacity Costs: Generation and Transmission Presentation to the CPUC Rates Forum Tom Beach Principal Consultant Crossborder Energy December 11, 2017 Noncoincident and Monthly Demand Charges Are (Mostly) a Relic of Obsolete

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Recovering System Capacity Costs: Generation and Transmission

Presentation to the CPUC Rates Forum

Tom Beach Principal Consultant Crossborder Energy December 11, 2017

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Noncoincident and Monthly Demand Charges Are (Mostly) a Relic of Obsolete Metering

 The cost of electricity is time-dependent.  T

day we have:
Granular cost and load data across the system
Powerful analytic tools
Two-way communication capabilities
Load-shifting and/or load-reducing technologies
An imperative to use clean energy efficiently
Rate design should:
Recognize diversity of loads
Accurately reflect costs as they change over time
Be understandable and actionable for customers

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Example: 87F in Oakland

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SLIDE 4

Example: 55F in Oakland

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Policy Recommendations

 Minimize use of noncoincident and

monthly demand charges

 More accurate and actionable rate designs

CPP
TOU energy rates
Daily peak demand charges

 Complexity should fit the customer  Gradualism / grandfathering  SCE’s evolution

Option A to Option R to Option E

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