Bill author: Assembly Member Lloyd Levine (D-40)

SUMMARY
This bill deletes a requirement that ratepayers who install solar energy systems be on a time-variant pricing tariff. The original law establishes the California Solar Initiative (CSI), a $3.3 billion program to subsidize the installation of solar energy systems on homes and buildings. Requires every solar customer obtaining the CSI subsidy to be on time-variant electricity rates once each of the three largest Investor Owned Utilities (IOU) has completed their next general rate case and has developed a time-variant tariff that creates the maximum incentive for ratepayers to install solar energy system so that the solar energy system maximizes production at times of peak demand.

WHY IT MATTERS
Residential and small commercial customers typically take electric service using what are known as flat rates, which do not vary based on when the electricity is consumed. Under time of use (TOU) rates, electricity rates are higher during the hottest part of the day when electricity is most expensive to generate, and are significantly lower during other times. These rate structures reward customers for shifting electricity usage to times of the day when electricity is not in high demand. The requirement that solar customers take TOU rates was intended to encourage the installation of solar energy systems in a manner that maximizes electricity production during periods of peak usage. The original goal of the mandatory TOU rates is now met through the use of a PUC rebate calculator.

THE GOALS OF AB 2768 INCLUDE:
• Eliminating an unnecessary requirement from the CSI that all solar customers be on time-variant electric or TOU rates.
• Making it easier for installers to sell new solar energy systems by eliminating TOU rates.