Utility plans major shift to time-based energy pricing

During a recent government meeting, officials discussed the ongoing efforts to restructure energy rates and implement advanced metering infrastructure (AMI) in Lompoc, aimed at promoting energy efficiency and reducing costs for consumers.

The conversation highlighted the importance of sending price signals to consumers, particularly during peak usage times, which currently see rates as high as 35 cents per kilowatt hour. Officials noted that by encouraging residents to shift their energy consumption to off-peak hours—when rates drop to approximately 15 cents—both the city and its residents could benefit financially. This strategy is expected to incentivize the adoption of energy-efficient appliances and practices, ultimately leading to lower overall energy costs.

The city is in the process of evaluating a new bill metering system that would allow for time-of-use pricing, which is crucial for providing customers with real-time data on energy costs. The current meters, while accurate, do not offer the necessary pricing signals to encourage shifts in energy usage. The proposed AMI system is part of a long-term plan to electrify the city by 2045, with an emphasis on gathering data to inform future energy strategies.

Officials indicated that the RFP process for selecting the best AMI solution is underway, with plans to present findings to the council within the next four to five months. This initiative is seen as a vital step toward enhancing the city’s energy infrastructure and promoting sustainable energy practices among residents.