Departing loads

Information about charges and exemptions

Get more information about CGDL. Download Electric Rate Schedule E-DCG (PDF)

Understanding customer generation departing loads

Customer generation means cogeneration, renewable technologies or another type of generation serving a portion of a customer's load. Customer generation relies on non-PG&E or dedicated PG&E distribution wires rather than the PG&E utility grid. Reductions in load are classified as customer generation departing load only to the extent that such load is served with electricity from a source other than PG&E.

Defining customer generation departing loads

A customer generation departing load is the portion of a PG&E's electric customer's load for which the customer, on or after December 20, 1995:

• Discontinues or reduces its purchases of bundled or direct access electricity service from PG&E.
• Purchases electricity supplied by customer generation to replace PG&E or direct access purchases.
• Remains physically located at a PG&E service area as it existed on April 3, 2003.

Learn about the nonbypassable charges

Nonbypassable charges involve costs that were included in bundled service bills and are now separately listed. Customer generation departing load customers may receive bills from PG&E for these charges even when they no longer receive electric service from PG&E. Nonbypassable charges that may apply include:

Public Purpose Programs (PPP)

These funds benefit the community, such as low-income ratepayer assistance and energy-efficiency programs.

Nuclear Decommissioning (ND) Charge.

This fee restores plant sites to their original condition after shut down.

In Decision 03-04-030, the CPUC determined that customer generation departing load customers may be required to pay a Cost Responsibility Surcharge (CRS). The surcharge includes the following nonbypassable charges:

California Department of Water Resources (DWR) Bond Charge.

This charge recovers past under collections of procurement costs initially paid out of the state's general fund and later repaid from the proceeds of department's bond issue.

Power Charge Indifference Adjustment (PCIA)

The PCIA is either a charge or credit ensuring that customers who buy electricity from non-utility suppliers pay their share of cost for generation acquired prior to a customer's switching to a third-party electric generation provider.

Energy Cost Recovery Amount (ECRA) Charge

The ECRA repays the principal, interest and other Energy Recovery bond costs set by the PG&E bankruptcy decision.

Competition Transition Charge (CTC)

This charge recovers the utilities' uneconomic power contract and employee transition costs.

Exemptions to nonbypassable charges

Decision 03-04-030 determined that the requirement for customer generation departing load customers to pay the DWR Bond Charge, the PCIA and ECRA, and the CTC depends on multiple factors, including the customer's date of departure and technology installed.

• Customers ending service before February 1, 2001, are exempt from the DWR Bond Charge, the PCIA and ECRA because the departure is before the CDWR entered the market. These customers may be obligated to pay the CTC unless otherwise exempted.

• Customers who began commercial operations on or before January 1, 2003, or who applied for authority to construct prior to August 29, 2001, and started commercial operation on or before January 1, 2004, are exempt from the PCIA and ECRA. These customers may be exempt from extra charges depending on installed technology.

• Customer Generation Departing Load up to 5 megawatts (MW) in size that is eligible for (i) the California Solar Initiative (CSI) program; or (ii) financial incentives from the Commission's self-generation program; or (iii) financial incentives from the California Energy Commission, is excepted from the DWR Bond Charge, Power Charge Indifference Adjustment, RA Charge, ECRA Charge, and the CTC, for the first 1 MW of generation. Note: this exemption has expired on 2/12/15 when the 3,000 MW cap was reached.

• Ultra-clean and low emission customers over 1 MW and other types of customer generation subject to the statewide cap may also qualify for certain exemptions.
  NOTE: This exemption has expired on 2/12/15 when the 3,000 MW cap was reached.

• Customer Generation Departing Load served by an eligible biogas digester customer-generator is exempt from the DWR Bond Charge, Power Charge Indifference Adjustment, RA Charge, ECRA Charge, ND Charge, PPP Charge, and CTC. Note: Public Utilities Code Section 2827.9 was repealed effective January 1, 2012. This exemption is not available to new Biogas Digesters.

• The following Customer Generation Departing Load is exempt from CTCs:
  • Load served by an on-site or over-the-fence non-mobile self-cogeneration or cogeneration facility, per Public Utilities Code Section 372(a)(4).
  • Load served by existing, new, or portable emergency generation equipment that is used during periods when service from PG&E is unavailable, per Public Utilities Code Section 372(a)(3), provided such equipment is not operated in parallel with PG&E’s power grid other than on a momentary basis.

Exemption filing processes

Following these procedures for exemption consideration for your facility:

Exempt from all or some charges.

Submit the Application for Customer Generation Cost Responsibility Surcharge Tariff Exemption. Download Application for Customer Generation Cost Responsibility Surcharge Tariff Exemption (PDF). Mail the application to PG&E and the CPUC. You do not need to submit an application if the customer generation system is clean, under one MW and eligible for participation in either the CPUC's self-generation incentive program or a similar program.

Exempt from CTC

Submit the Affidavit in Support of Claim of Competition Transition Charge Exemptions Under Public Utilities Code Section 372. Download Affidavit in Support of Claim of Competition Transition Charge Exemptions Under Public Utilities Code Section 372 (PDF). When you complete the Application for Customer Generation Cost Responsibility Surcharge Tariff Exemption, sign the affidavit and attach it to your application. Mail both documents to PG&E.

Exempt from PCIA

Submit the Affidavit in Support of Claim of PCIA Exemption Under Public Utilities Code Section 353.2. Download Affidavit in Support of Claim of DWR Power Charge Exemption Under Public Utilities Code Section 353.2 (PDF) When you complete the Application for Customer Generation Cost Responsibility Surcharge Tariff Exemption, sign the affidavit and attach it to your application. Mail both documents to PG&E.

Within 10 calendar days of receiving the application, PG&E notifies you, in writing, of the following:

• Provisional categorization of the generating facility.
• Conditions that must be met before final categorization will be granted.
• A description of the Cost Responsibility Surcharge that you will be exempt or not exempt from paying.

The final categorization and notice is made after PG&E and the CPUC confirms that your installation qualifies for the exemption.