April 14, 2003—The California Public Utilities Commission recently approved a decision exempting many types of small, renewable, and clean self-generation of customers of Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas and Electric Company from extra power surcharges.
Customers who installed their own power generation before Jan. 17, 2001, when the California Department of Water Resources began contracting for electricity, are exempt from most surcharges, as are customer generation systems that meet certain environmental criteria. The exceptions to the surcharges are created to promote economic incentives to develop various forms of alternative generation, as well as to comply with Legislative and Commission policy.
The exemptions are as follows:
- Systems smaller than 1 megawatt that are net metered and/or eligible for PUC or California Energy Commission incentives for being clean and super-clean are fully exempt from any surcharge. This includes many solar and wind systems, as well as fuel cells.
- Ultra-clean and low-emission systems (such as solar) that are 1 megawatt or greater that meet Senate Bill 1038 requirements to comply with CARB 2007 air emission standards will pay 100 percent of the bond charge, but no future Department of Water Resources charges or utility undercollection surcharges.
- All other self-generation customers will pay all components of the surcharge except the Department of Water Resources ongoing power charges.
