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SFPUC says CPUC exit-fee decision could raise costs for Clean Power SF customers
Summary
SFPUC staff told the commission the California PUC's Oct. 11 decision on the PCIA (exit fee) could increase charges to Clean Power SF customers substantially, potentially raising program costs by $40–50 million annually and adding about $1.50–$2.50 to a typical residential monthly bill starting Jan. 1, 2019 absent countermeasures.
The San Francisco Public Utilities Commission received an update on Oct. 23 about potential customer impacts from a California Public Utilities Commission decision that changes the methodology for the Power Charge Indifference Adjustment (PCIA), commonly called the exit fee.
Barbara Hale, assistant general manager for power, said Clean Power SF enrollment metrics are steady, with an opt-out rate of 3.1% and a super-green upgrade at about 3.6%, but that the CPUC's Oct. 11 vote to approve an alternate methodology is expected to increase the PCIA charged to Clean Power SF customers starting Jan. 1, 2019 (SEG 846-902).
Using PG&E's most recent rate forecast, Clean Power SF staff estimated customers could pay an additional $40 million to $50 million per year to PG&E if the program takes no mitigating action—amounting to roughly 25% of Clean Power SF's forecasted revenue—and that typical residential customers could see a $1.50 to $2.50 monthly bill increase absent staff intervention (SEG 912-931).
Hale said staff are awaiting PG&E's November rate update before proposing specific responses and are evaluating options including reducing program costs, changing supply-portfolio choices, adjusting enrollment timing, and pursuing recourse at the CPUC in partnership with CalCCA (SEG 921-957). She warned that delaying program enrollment could slow procurement of new California renewable resources and set back local build-out and affordability goals (SEG 947-953).
Commissioners requested an analysis of the impact on enterprise financials and the broader Clean Power SF business model; staff said they are preparing that work and will report back (SEG 976-991).
