Who Is Subject to Peak Day Pricing?
Peak Day Pricing Will Affect PG&E Ag Customers
PG&E managers estimate more than 2,000 electrical service points in the Central Valley could be impacted by Peak Day Pricing rate changes. Initially, about 400 PG&E service points are projected to be subject to Peak Day Pricing surcharges as of Feb. 1, 2010, the official Peak Day Pricing program start date. As PG&E replaces existing mechanical meters with new Smart Meters or Interval Meters, more customers will be added to the list of those subject to Peak Day Pricing.
The term “service points” refers to equipment such as irrigation pumps, electric motors and electric compressors that use electricity. To be subject to Peak Day Pricing, a service point must have:
- PG&E Smart Meter or Interval Meter (or qualify for one)*
- Loads over 200 kilowatts (approximately 250 hp irrigation pump)
Agricultural customers will have up to three options for responding to Peak Day Pricing:
Demand Response Incentive Programs: This option—known as a “Demand Response” program—offers special rate protections and other incentives to qualified customers. Peak Energy Agriculture Rewards (PEAR) is a Demand Response program endorsed by PG&E. It is available to PG&E customers with service points over 50 kW (approx. 75 hp) in minimum load electric loads and/or those with Smart Meters or Interval Meters installed.
- Avoids Peak Day Pricing surcharges that may increase costs by as much as 10X. For example, PG&E charges may jump from $24 per hour to $224 per hour to operate a 250-hp irrigation pump during Peak Demand Events.
- Pays annual incentives averaging $5,000 per service point to Ag customers who volunteer to shut down service points during Peak Demand Events (shut down 1-4 hours during a Peak Demand Day from 11 am to 7 pm, not more than 24 hours total in one month)
Provides up to $20,000 in free remote control / monitoring equipment per service that enables Ag customers to use any phone, SmartPhone or Internet-connected computer to:
- Turn service points on and off (e.g., electric pumps, motors or compressors)
- Monitor electricity usage
- Monitor water usage
- Monitor equipment health
- Monitor soil moisture (optional soil probes)
- And much more…
Peak Day Pricing (PDP) + Time-of-Use (TOU) Program: PG&E has been examining the electricity usage patterns of larger Ag customers to identify those that will be subject to the new Peak Day Pricing program. Many large customers will have both TOU and Peak Day Pricing service points:
- PDP will apply to service points with loads at or above 200 kW. NOTE: Customers with service points at or above 200 kW can avoid Peak Day Pricing surcharges by enrolling in the Peak Energy Agriculture Rewards (PEAR) Program
- TOU will apply to smaller service points
Time-of-Use (TOU): In many cases, smaller Ag customers will default to existing Time-of-Use (TOU) pricing plans with rates that vary based upon the seasons and the time of day.
- TOU will apply to service points with loads under 200 kW (approx. 250 hp)
- Ag customers may be eligible to participate in one or more of the above three options, depending upon
- Size of their operations
- Peak demand and energy usage associated with their individual service points
Get expert advice from an energy specialist about how you can benefit from the Peak Energy Agriculture Rewards (PEAR) program from EnerNOC:
* Smart Meters and Interval Meters are capable of reading loads and transmitting through wireless networks to PG&E. Customers can view data on the secure InterAct Web site. Customers without interval or Smart Meters will be enrolled after new meters are installed and 90 days of data are collected.