All California residents will be charged for energy usage based
on peak day pricing, starting in 2014.
All California residents will be charged for energy usage based on peak day pricing, starting in 2014.
Peak day pricing is from 2 to 7 p.m. It is different from flat rate pricing with customers being charged different rates depending on what time of day they use energy.
Because SmartMeters record energy use in 15-minute intervals, PG&E will be able to charge customers different rates throughout the day on selected peak dates.
Dates are typically prompted by high temperatures, when energy consumption is up and demand is high.
Peak day pricing is mandated by the California Public Utilities Commission, after the California State Assembly passed a bill in June this year, stating utility companies must incorporate energy storage capacity into their operations.
Approximately 4 million residential customers will automatically be enrolled in a peak time rebate program between May 2011 and 2012. Customers in the rebate program will be reimbursed on peak days for using less energy.
“The idea is to get customers into the habit of conserving,” said David Eisenhauer, a representative for PG&E. The rebate program will be phased out when all residential customers transition to peak day pricing.
Currently, large commercial and industrial customers are charged at a steeper rate from 2 to 6 p.m. on high demand days than those that conserve. Starting February 2011, agricultural organizations will transition to peak day pricing, with small and medium scale business customers following in November 2011.