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Updates to PG&E Tariffs and Rates Per kWh in 2021

Updates to PG&E Tariffs and Rates Per kWh in 2021

By Vanessa Peng

PG&E tariffs often change, impacting residents and businesses in the process. PG&E’s new Commercial and Industrial (C&I) rates, known as B rates, will become mandatory March 2021. B rates will most notably change C&I customers’ on-peak PG&E Time of Use (TOU) rates. If you’re a C&I customer who is concerned about the new TOU rates, there is a way you can avoid having to pay more.


What are PG&E tariffs?

The new PG&E rates are a type of utility tariff. A utility tariff is a set schedule of fees, which are determined by a utility company and local government regulation. Since PG&E is located in California, their rates are regulated by the California Public Utilities Commission (CPUC).

 

What is the rate schedule for the new PG&E tariffs?

The new PG&E commercial rates were voluntary when they were first implemented in November 2019. The B rates are similar to the well-established A and E rates with some major changes: 

  • The on-peak hours are changing from noon-6 p.m. to later at night from 4-9 p.m.
  • There will be a 4-month summer season from June through September as opposed to the previous 6-month summer season from May through October.
  • The on-peak period will be seven days a week year-round, previously it was Monday through Friday from 8:30-9:30 p.m. during the winter season.
  • There will be a super off-peak period from 9 a.m.-2 p.m. March through May.

 

The biggest change for any C&I customer will be the on-peak time-of-use rates with the now 4-9 p.m. window, especially businesses that have a second shift. If you’re a business impacted by this you should consider investing in a solar-plus-storage system. A solar-plus-storage system is one of the most effective ways of freeing your business from reliance on your local utility and the grid.

 

Solar is a renewable resource that is already available to you most days of the year. Energy storage allows you to capitalize on all the solar power your facility collects. Storing energy for later use not only gives you energy independence, but you’ll have the added security of emergency backup power. Other benefits include peak shaving, and decreasing your on-peak kW demand costs, among other benefits.

Interested in finding ways to reduce energy consumption?