Transition from PG&E Electric Rate Schedule E7 to E6

E7 to E6 Comparison Chart (XLS, 23 KB)

Changes are coming at the end of this year to Pacific Gas and Electric Company’s (PG&E) residential electric time-of-use rate (TOU) schedules E-6, EL-6, E-7 and EL-7. In conjunction with California Solar Energy Industries Association (CAL SEIA), PG&E is posting this notice, to share with you our plan on how PG&E will transition from the EL-7 and E-7 to the EL-6 and E-6 rates for customers who will be installing solar and who wish to take service on a residential TOU rate schedule. PG&E and CAL SEIA are interested in making the transition from EL-7/E-7 to EL-6/E-6 as smooth as possible for the solar industry and for our customers. The revised solar-friendly EL-6 and E-6 TOU rate schedules were designed by PG&E and representatives of the solar community to replace the E-7 and EL-7 rate schedules. (Customers currently on EL-7 and E7 will be able to remain on these rate schedules. Customers currently on E-6 and EL-6 will automatically be placed on the revised E-6/EL-6 rates when they become effective January 1, 2008 – see About E-6 below for more about these new rates.)

Background

In December of 2006, the California Public Utilities Commission (CPUC) in Decision 06-12-025 re-opened PG&E’s E-7 residential TOU rate schedule and the low income version, EL-7. However, the decision also limited the reopening of E-7/EL-7 and ordered that “Schedule E-7 and EL-7 shall be closed following the issuance of a Phase 2 decision in PG&E’s 2007 General Rate Case (GRC) or once 5,000 new solar customers have enrolled in the reopened schedules, whichever comes first.” On January 1, 2008, a revised version of the existing rate schedules EL-6/E-6 will become effective as a result of the final approval of Phase 2 of PG&E’s 2007 GRC (D.07-09-004). So based on the order, E-7 and EL-7 will not be available to new solar customers after January 1, 2008 at the latest. These reopened schedules would be closed prior to this January 1, 2008 date, if enrollment exceeds 5,000 customers before then.

About E-6

During 2007, PG&E and solar industry representatives worked together to create revised residential TOU EL-6 and E-6 rate schedules that were responsive to the needs of the solar industry. Our joint goal was to create rate schedules that supported the objectives created by the implementation of the 2007 California Solar Initiative. As of January 1, 2008, the EL-6/E-6 rate schedules will have a significant rate differential between on-peak and off-peak, just as today’s EL-7/E-7 rate schedules have. In addition, the EL-6/E-6 rate schedules have a shoulder peak, which means solar generators that are producing electricity in the morning have that electricity valued at a higher part-peak rate, instead of EL-7/E-7’s off-peak rates. While no rate will be perfect for every customer, the revised EL-6/E-6 rate schedules effective in 2008 were specifically designed with solar customers in mind. Estimated rates for January 1, 2008, are not final and may change as a result of CPUC decisions.

Current Status of E7/EL7:

Since the reopening of EL-7/E-7, as of December 21, 2007 PG&E has placed 4,151 net energy metered customers on the EL-7/E-7 rate schedules. Thus, there are currently 849 open positions remaining for customers to select residential rate schedule EL-7 or E-7.

PG&E will continue to interconnect and provide “Permission to Operate” letters on a project-by-project basis through the end of the year. For those customers applying for EL-7 and E-7, the rate schedule change will be implemented at the time of the project’s approval for interconnection and successful installation of the bi-directional meter as required under current Net Energy Metering (NEM) guidelines, up to a total of 5,000 customers.

2008 EL-7/E-7 Queue


If PG&E has not reached the 5000 cap by December 31, 2007, customers who have already submitted either a PG&E California Solar Initiative (CSI) Application, or a PG&E Interconnection Application requesting rate schedule EL-7 or E-7, that was received at PG&E by December 31, 2007, will be placed in a working queue. CSI applications not specifying a rate schedule will be considered a request for the E-7 or EL-7 rate schedule.

The queue listing will be created and ranked by receipt order of either application. Customers who are ranked within the number of open positions will have five months (until June 1, 2008) to successfully receive PG&E approval to interconnect their projects with PG&E to qualify for either EL-7 or E-7. Customer applications in the queue but ranked outside of the number of open positions will have the choice to proceed with interconnection under another rate schedule for which they are eligible or postpone their interconnection until they can determine whether they may in fact qualify for EL-7/E-7 by means of a higher ranking customer canceling its eligibility.

All projects must be completed or waiting for PG&E to approve the interconnection by June 1, 2008, to qualify for the remaining slots under EL-7/E-7. After June 1, 2008, all non-qualified customers remaining in the queue will need to select an eligible rate schedule for their interconnection and proceeding forward with the installation of their net energy metering bi-directional meter.

If you have any questions about this notice or about PG&E’s solar program, please feel free to email one of these programs:

  • Generator Interconnection Services, Interconnection queue, gen@pge.com
  • California Solar Incentive Program, solar@pge.com

Or check PG&E’s websites www.pge.com/nem or www.pge.com/csi.

PG&E appreciates your commitment to solar energy, and looks forward to working with you on your future renewable energy projects.