Monday, July 18, 2011

Pacific Gas and Electric Company - Time Varying Pricing

BOMA San Francisco Members:

To manage heightened electricity demands and support the state’s energy and greenhouse gas reduction requirements, the California Public Utilities Commission (CPUC) has mandated that all investor-owned utilities, like Pacific Gas and Electric Company (PG&E), pursue Time Varying Pricing. This mandate transitions all business customers from flat pricing plans to time varying pricing plans; more closely aligning customers’ price of energy with the cost of energy at the time it is used.

Businesses play an integral role in decreasing California’s costly peak energy demand and increasing energy reliability and efficiency. These new pricing plans also offer business customers more control and the opportunity to save money on their overall electric bills.

Time Varying Pricing

Many business customers are already eligible for a Time Varying Pricing plan from PG&E like Time of Use or Peak Day Pricing. These plans encourage active management of energy use and create economic incentives for customers who can reduce peak use and shift some usage to off-peak energy times.

Energy costs less to generate during off-peak times which include early morning, late evening, holidays, nights and weekends. Therefore, customers will pay lower prices for the energy they use during these times. Business customers will have greater control in lowering their overall electric bills simply by reducing energy used during peak times and moving some portion of electricity use to partial peak and off-peak times.

Peak Day Pricing

All business customers will eventually become eligible for a Time Varying Pricing plan from PG&E called Peak Day Pricing. Peak Day Pricing combines a time of use plan with peak day event surcharges.

Time of use plans offer lower rates during low demand periods (off-peak and partial-peak) and higher rates when demand is high (peak). Peak day events add surcharges to a portion of the peak period during nine to 15 events per year (usually hot summer weekdays) and additional credits are offered for energy use during summer off-peak and partial-peak periods. The plan features day-ahead notification and bill protection, allowing customers to participate without risk for the first year they are on the plan along with other customizable options that vary by specific pricing plan.

There are simple actions you can take to help your business be successful and save money on Peak Day Pricing. To learn more about this plan, including when your electricity service will be eligible and ways to reduce and shift electricity use, be sure to visit us at

No comments:

Post a Comment