Learn the differences between departing load categories

Find detailed information about charges and exemptions.

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 (CDWR) 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 aquired before 2003.
  • 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.

 

View exemptions to nonbypassable charges

Decision 03-04-030 determined that the requirement for customer generation departing load customers to pay the CDWR 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 CDWR 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.
  • Clean customer generation with net-metered systems under 1 MW are eligible for the CPUC’s self-generation incentive program or a similar California Energy Commission program. They are automatically exempt from paying the CRS. This generation counts toward the statewide MW cap.
  • 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.

 

View exemption filing processes

Following these procedures for exemption consideration for your facility:

 


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.

 

Understanding New Municipal Departing Load (NMDL) background and charges

NMDL refers to customers who were located in a PG&E service area as it existed on December 20, 1995, and use a POU for service. A Publicly Owned Utility (POU) is a public entity that qualifies as a local electric POU under Public Utilities Code section 9604. Get detailed information. Download Electric Schedule E-NMDL (PDF, 182 KB).

 

View background about NMDL charges

Because of AB 1890, NMDL customers are obligated to pay departing load charges related to the costs of the state’s electric restructuring.

 

  • Decisions by the CPUC mandate that NMDL consumers owe charges for power purchases by the CDWR during the 2001 energy crisis and because of the PG&E bankruptcy decision.
  • PG&E is obligated to serve all consumers in the PG&E service area and NDML consumers share these costs.
  • The CPUC mandates that consumers pay certain charges when they choose a POU. However, CPUC grants exemptions from some departing load charges to NMDL consumers that meet certain requirements.

 

Find out about NMDL updates

As part of the state’s energy industry restructuring in the late 1990s and energy crisis of 2001, PG&E collects fees, known as departing load charges, from NMDL consumers. We began billing for these fees in 2008 to customers served by POUs and Irrigation Districts. In response to concerns about these fees, we negotiated an agreement with the Merced and Modesto Irrigation Districts. As a result, customers of these districts do not pay these fees.


Understanding Transferred Municipal Departing Load (TMDL) background and charges

Read about TMDL and how these charges may affect your business.

 

View TMDL background information

TMDL refers to customers who, on or after December 20, 1995, replaced bundled or direct access electricity service from PG&E with service from a Publicly Owned Utility (POU). A POU is a public entity that qualifies as a local electric POU under Public Utilities Code section 9604. Get detailed information. Download Electric Schedule E-TMDL (PDF, 258 KB).

 

View background information about TMDL charges

Following are reasons why customers may owe TDML charges:

 

  • Assembly Bill 1890 (AB 1890), outlines that TMDL consumers must pay charges to support California’s electric industry restructuring.
  • Decisions by the California Public Utilities Commission (CPUC) mandate that TMDL consumers owe charges for power purchases by the California Department of Water Resources (CDWR) during the 2001 energy crisis and because of the PG&E bankruptcy decision.
  • Actions by state government and the CPCU ensured that charges are equitably shared. However, the CPUC granted exemptions from some departing load charges to consumers who meet specific requirements.

 

Understanding departing load charge rates

Departing load charges involve costs that typically are included in bundled service bills and are related to the 2001 energy crisis and the electric industry restructuring. TMDL customers may receive bills from PG&E for these charges even when they no longer receive electric service from us. PG&E issues monthly bills using the Electric Rate Schedule E-TMDL. 

 

  • CDWR Bond Charge. This charge recovers the cost of bonds issued to pay for part of the power purchased by the CDWR to serve electric customers. The charge is collected for the CDWR and does not belong to PG&E. This charge expires in 2022.
  • 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 before 2003.
  • Nuclear Decommissioning (ND) Charge: The ND Charge collects funds required for site restoration when PG&E nuclear power plants are removed from service. There is no expiration date for this charge.
  • Energy Cost Recovery Amount (ECRA) Charge. The ECRA Charge repays the principal, interest and other Energy Recovery Bond costs set by the PG&E bankruptcy decision.
  • Competition Transition Charge (CTC): CTA recovers the cost of qualifying facilities and power purchase agreements that are in excess determined by the CPUC. It also pays for some industry restructuring costs authorized by the CPUC. This charge does not expire.

 

Learn about departing load charge exemptions

Customers may be exempt from one or more departing load charges depending on the following conditions:

 

  • All customers owe ND and CTC charges.
  • Customers terminating PG&E service before February 1, 2001 are exempt from the CDWR Bond Charge and PCIA.
  • Customers in 2000 Bypass Report areas are exempt from PCIA, subject to the following annual limits:
    • Modesto Irrigation District: 190,220 megawatt-hours (MWh).
    • Merced Irrigation District: 340,844 MWh.
    • South San Joaquin Irrigation District Condemnation Area: 21,605 MWh.
    • Laguna Irrigation District Condemnation Area 35,583 MWh.
    • Redding, Roseville, Lodi, Davis, and Brentwood Annexation Areas: 151,506 MWh.

 

To assign any unused portion of the allotted exception to other TMDL entities under the Bypass Report, priority is given to load transferring from PG&E bundled service.

 

  • Customers terminating PG&E service before January 1, 2000 are exempt from ECRA charges.
  • Customers that left a location that as of December 19, 2003 was no longer part of the PG&E service area are exempt from ECRA charges.
  • When the previous exemptions fail to meet the allotted annual number, Load Eligible for Leftover Exceptions are available on an annual first-come, first-served basis. To qualify, you must be a TMDL customer of a POU in business on or prior to July 10, 2003 with at least 100 customers. The following entities qualify for Load Eligible Leftover Exceptions:
    • Municipal Utilities: Alameda, Anaheim, Azusa, Banning, Biggs, Burbank, Calaveras, Colton, Glendale, Gridley, Healdsburg, Lodi, Lompoc, Los Angeles, Needles, Palo Alto, Pasadena, Pittsburg, Redding, Riverside, Roseville, Santa Clara, Shasta Lake, Tuolumne, Ukiah, Vernon.
    • Municipal Utility Districts: Lassen, Sacramento.
    • Public Utility Districts: Trinity, Truckee-Donner.
    • Irrigation Districts: Imperial, Merced, Modesto, Turlock.
    • Other: Port of Stockton.

 

Understand service change notification requirements

PG&E customers who intend to reduce or change their service to a POU must notify PG&E using the Notice of Departure letter at least 30 days before the change occurs. Download Notice of Departure to Pacific Gas and Electric Company (PDF, 12 KB).

Within 20 days of receipt of the customer’s notice, PG&E mails a TMDL Nonbypassable Charge Statement. This statement outlines the departing load charges owed when service is discontinued. Customers owe departing load charges from the discontinuation date or 30 days from the date of receipt of the statement, whichever is later.

 

Ask questions about charges

When a customer has questions about the TMDL Nonbypassable Charge Statement, the customer must notify PG&E in writing within 20 days after receiving the statement. More information about the dispute resolution process can be found in Section 3.e. of Schedule E-TMDL.

Understand departing notice requirements

PG&E customers who intend to depart must notify a designated PG&E rep using the Departing Load Notice letter at least 30 days before the change occurs.