PG&E wants Marin Clean Energy customers to pay more for exit ticket

By Richard Halstead, Marin Independent Journal

The California Public Utilities Commission will rule this month on requests from Pacific Gas and Electric Co. that some say if granted could hinder the effort to boost renewable energy use in the state. PG&E is seeking permission to nearly double the monthly fee it levies on customers of Marin Clean Energy and other community choice electricity suppliers. The investor-owned utility is also proposing a change in net metering policy that would substantially reduce the financial incentive for installing residential solar power systems.

When a PG&E customer opts to buy electricity from another energy supplier, such as Marin Clean Energy or Sonoma Clean Power, the company is permitted to charge that customer an exit fee to compensate it for the power contracts it previously entered into to supply that customer’s electricity. The average Marin Clean Energy customer pays an exit fee of $6.70 per month. PG&E is requesting permission to nearly double the exit fee to about $13 for an average Marin Clean Energy customer. The increase would mean that, for the first time in several years, Marin Clean Energy customers would be paying more for their electricity than PG&E customers.

When PG&E loses a customer to another energy supplier, it sells the excess electricity that it purchased for that customer. The company might earn or lose money, depending on market conditions. So far, PG&E has stockpiled more than $1 billion from transactions in which it earned money. In conjunction with its request for a hike in the exit fee, PG&E initially asked the CPUC’s permission to absorb this money. Marin Clean Energy objected. The CPUC rejected Marin Clean Energy’s request that the money be used to offset the need for additional exit fee revenue and directed PG&E to submit an alternative proposal outlining its plans for the $1 billion next year.

Read full article in the Marin Independent Journal

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