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Sonoma Clean Power: PG&E Exit Fees-What’s Ahead?

What’s in Store for Community Choice and Sonoma Clean Power?

TransmissioLinesPG&E wants to double exit charge on customers who opt for Community Choice. Fee increases would also apply to Sonoma Clean Power and Marin Clean Energy.

Today, PUC president Michael Picker presides over a commission poised to eiNearly 90 percent of Sonoma County Pacific Gas & Electric customers are also Sonoma Clean Power customers who may soon be hit with an electric bill increase through no fault of Sonoma Clean Power. Whether this happens depends on a decision to be made today by the California Public Utilities Commission.

Sonoma Clean Power has enjoyed a spectacularly successful launch and first full year of service. Rates are currently 6 to 9 percent below PG&E rates, including the current Power Charge Indifference Adjustment fee. Sonoma Clean Power customers’ dollars pay for 36 percent renewable energy in the basic power mix, which is about 48 percent lower in greenhouse gas emissions than PG&E’s mix. When Sonoma Clean Power considered rate changes earlier this year, it chose to keep them unchanged from the previous year, in contrast to PG&E’s 30-plus year trend of increasing rates an average of 4 percent per year.

The timing of this “adjustment” to the Power Charge Indifference Adjustment coincides with the anticipated launch of San Francisco’s Community Choice program in early 2016. Many other communities in PG&E’s service territory are also on track to establish community choice programs imminently. With a dramatically increased Power Charge Indifference Adjustment, community choice programs lose their competitive edge, and the many communities currently considering Community Choice may abandon it instead.

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