NL Consumer Advocate says 18% electricity rate hike 'unacceptable'

CPUC Exit Fee Increase for CCAs adjusts the PCIA, affecting utilities, San Diego ratepayers, renewable energy procurement, customer equity, and cost allocation, while providing regulatory certainty for Community Choice Aggregation programs and clean energy goals.

Key Points

A CPUC-approved change raising PCIA exit fees paid by CCAs to utilities, balancing cost shifts and customer equity.

✅ PCIA rises from about 2.5c to roughly 4.25c per kWh in San Diego

✅ Aims to reduce cost shifts and protect non-CCA customers

✅ Offers regulatory certainty for CCA launches and clean energy goals

The California Public Utilities Commission approved an increase on the exit fees charged to customers who take part in Community Choice Aggregation -- government-run alternatives to traditional utilities like San Diego Gas & Electric.

After reviewing two competing exit fee proposals, all five commissioners voted Thursday in favor of an adjustment that many CCA advocates predicted could hamper the growth of the community choice movement.

But minutes after the vote was announced, one of the leading voices in favor of the city San Diego establishing its own CCA said the decision was good news because it provides some regulatory certainty.

"For us in San Diego, it's a green light to move forward with community choice," said Nicole Capretz, executive director of the Climate Action Campaign. "For us, it's let's go, let's launch and let's give families a choice. We no longer have to wait."

Under the CCA model, utilities still maintain transmission and distribution lines (poles and wires, etc.) and handle customer billing. But officials in a given local government entity make the final decisions about what kind of power sources are purchased.

Once a CCA is formed, its customers must pay an exit fee -- called a Power Charge Indifference Adjustment -- to the legacy utility serving that particular region. The fee is included in customers' monthly bills.

The fee is required to offset the costs of the investments utilities made over the years for things like natural gas power plants, renewable energy facilities and other infrastructure.

Utilities argue if the exit fee is set too low, it does not fairly compensate them for their investments; if it's too high, CCAs complain it reduces the financial incentive for their potential customers.

The Public Utilities Commission chose to adopt a proposal that some said was more favorable to utilities, leading to complaints from CCA boosters.

"We see this will really throw sand in the gears in our ability to do things that can move us toward (climate change) goals," Jim Parks, staff member of Valley Clean Energy, a CCA based in Davis, said before the vote.

Commissioner Carla Peterman, who authored the proposal that passed, said she supports CCAs but stressed the commission has a "legal obligation" to make sure increased costs are not shouldered by "customers who do not, or cannot, join a CCA. Today's proposal ensures a more level playing field between customers."

As for what the vote means for the exit fee in San Diego, Peterman's office earlier in the week estimated the charge would rise from 2.5 cents a kilowatt-hour to about 4.25 cents.

The Clear the Air Coaltion, a San Diego County group critical of CCAs, said the newly established exit fee -- which goes into effect starting next year -- is "a step in the direction."

But the group, which includes the San Diego Regional Chamber of Commerce, the San Diego County Taxpayers Association and lobbyists for Sempra Energy (the parent company of SDG&E), repeated concerns it has brought up before.

"If the city of San Diego decides to get into the energy business this decision means ratepayers in National City, Chula Vista, Carlsbad, Imperial Beach, La Mesa, El Cajon and all other neighboring communities would see higher energy bills, and San Diego taxpayers would be faced with mounting debt," coalition spokesman Tony Manolatos said in an email.

CCA supporters say community choice is critical in ensuring San Diego meets the pledge made by Mayor Kevin Faulconer to adopt the city's Climate Action Plan, mandating 100 percent of the city's electricity needs must come from renewable sources by 2035.

Now attention turns to Faulconer, who promised to make a decision on bringing a CCA proposal to the San Diego City Council only after the utilities commission made its decision.

A Faulconer spokesman said Thursday afternoon that the vote "provides the clarity we've been waiting for to move forward" but did not offer a specific time table.

"We're on schedule to reach Mayor Faulconer's goal of choosing a pathway that achieves our renewable energy goals while also protecting ratepayers, and the mayor looks forward to making his recommendation in the next few weeks," said Craig Gustafson, a Faulconer spokesman, in an email.

A feasibility study released last year predicted a CCA in San Diego has the potential to deliver cheaper rates over time than SDG&E's current service, while providing as much as 50 percent renewable energy by 2023 and 80 percent by 2027.

"The city has already figured out we are still capable of launching a program, having competitive, affordable rates and finally offering families a choice as to who their energy provider is," said Capretz, who helped draft an initial blueprint of the climate plan as a city staffer.

SDG&E has come to the city with a counterproposal that offers 100 percent renewables by 2035.

Thus far, the utility has produced a rough outline for a "tariff" program that would charge ratepayers the cost of delivering more clean sources of energy over time.

Some council members have expressed frustration more specifics have not been sketched out.

SDG&E officials said they will take the new exit fee into account as they go forward with their counterproposal to the city council.

Speaking in general about the utility commission's decision, SDG&E spokeswoman Helen Gao called it "a victory for our customers, as it minimizes the cost shifts that they have been burdened with under the existing fee formula.

"As commissioners noted in rendering their decision, reforming the (exit fee) addresses a customer-to-customer equity issue and has nothing to do with increasing profits for investor-owned utilities," Gao said in an email.

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U.S. Energy Aid to Ukraine delivers emergency electricity grid equipment, generators, transformers, and circuit breakers, supports ENTSO-E integration, strengthens energy security, and advances decarbonization to restore power and heat amid Russian attacks.

Key Points

U.S. funding and equipment stabilize Ukraine's power grid, strengthen energy security, and advance ENTSO-E integration.

✅ $53M for transformers, breakers, surge arresters, disconnectors

✅ $55M for generators and emergency heat to municipalities

✅ ENTSO-E integration, cybersecurity, nuclear safety support

In the midst of Russia’s continued brutal attacks against Ukraine’s energy infrastructure, Secretary of State Blinken announced today during a meeting of the G7+ on the margins of the NATO Ministerial in Bucharest that the United States government is providing over $53 million to support acquisition of critical electricity grid equipment. This equipment will be rapidly delivered to Ukraine on an emergency basis to help Ukrainians persevere through the winter, as the country prepares for winter amid energy challenges. This supply package will include distribution transformers, circuit breakers, surge arresters, disconnectors, vehicles and other key equipment.

This new assistance is in addition to $55 million in emergency energy sector support for generators and other equipment to help restore emergency power and heat to local municipalities impacted by Russia’s attacks on Ukraine’s power system, while both sides accuse each other of energy ceasefire violations that complicate repairs. We will continue to identify additional support with allies and partners, and we are also helping to devise long-term solutions for grid restoration and repair, along with our assistance for Ukraine’s effort to advance the energy transition and build an energy system decoupled from Russian energy.

Since Russia’s further invasion on February 24, working together with Congress, the Administration has provided nearly $32 billion in assistance to Ukraine, including $145 million to help repair, maintain, and strengthen Ukraine’s power sector in the face of continued attacks. We also have provided assistance in areas such as EU integration and regional electricity trade, including electricity imports to stabilize supply, natural gas sector support to maximize resource development, support for nuclear safety and security, and humanitarian relief efforts to help Ukrainians to overcome the impacts of energy shortages.

Since 2014, the United States has provided over $160 million in technical support to strengthen Ukraine’s energy security, including to strengthen EU interconnectivity, increase energy supply diversification, and promote investments in energy efficiency, renewable energy, and clean energy technologies and innovation.  Much of this support has helped prepare Ukraine for its eventual interconnection with Europe’s ENTSO-E electricity grid, aligning with plans to synchronize with ENTSO-E across the integrated power system, including the island mode test in February 2022 that not only demonstrated Ukraine’s progress in meeting the EU’s technical requirements, but also proved to be critical considering Russia’s subsequent military activity aimed at disrupting power supplies and distribution in Ukraine.

Department of Energy (DOE)

• With the increased attacks on Ukraine’s electricity grid and energy infrastructure in October, DOE worked with the Ukrainian Ministry of Energy and DOE national laboratories to collate, vet, and help prioritize lists of emergency electricity equipment for grid repair and stabilization amid wider global energy instability affecting supply chains.
• Engaged at the CEO level U.S. private sector and public utilities and equipment manufacturers to identify $35 million of available electricity grid equipment in the United States compatible with the Ukrainian system for emergency delivery. Identified $17.5 million to support purchase and transportation of this equipment.
• With support from Congress, initiated work on full integration of Ukraine with ENTSO-E to support resumption of Ukrainian energy exports to other European countries in the region, including funding for energy infrastructure analysis, collection of satellite data and analysis for system mapping, and work on cyber security, drawing on the U.S. rural energy security program to inform best practices.
• Initiated work on a new dynamic model of interdependent gas and power systems of Europe and Ukraine to advance identification and mitigation of critical vulnerabilities.
• Delivered emergency diesel fuel and other critical materials needed for safe operation of Ukrainian nuclear power plants, as well as initiated the purchase of three truck-mounted emergency diesel backup generators to be delivered to improve plant safety in the event of the loss of offsite power.

U.S. Department of State

• Building on eight years of technical engagement, the State Department continued to provide technical support to Naftogaz and UkrGasVydobuvannya to advance corporate governance reform, increase domestic gas production, provide strategic planning, and assess critical sub-surface and above-ground technical issues that impact the company’s core business functions.
• The State Department is developing new programs focused on emissions abatement, decarbonization, and diversification, acknowledging the national security benefits of reducing reliance on fossil fuels to support Ukraine’s ambitious clean energy and climate goals and address the impacts of reduced supplies of natural gas from Russia.
• The State Department led a decades-long U.S. government engagement to develop and expand natural gas reverse flow (west-to-east) routes to enhance European and Ukrainian energy security. Ukraine is now able to import natural gas from Europe, eliminating the need for Ukraine to purchase natural gas from Gazprom.

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Germany EV Subsidy Cut triggers budget-crisis fallout in the automotive industry, after a constitutional court ruling; EV incentives end, threatening electromobility adoption, manufacturer competitiveness, 2030 targets, and demand amid Chinese competition and weak global growth.

Key Points

A sudden end to Germany's EV incentives due to a budget shortfall after a court ruling, hurting automakers and adoption.

✅ Ends buyer rebates amid budget crisis ruling

✅ Risks 2030 EV targets and industry competitiveness

✅ Weak demand and China competition intensify

The German government has faced a backlash after abruptly ending an electric car subsidy scheme in a blow to the already struggling automotive industry.

The scheme is one of the casualties of a budget crisis caused by a shock constitutional court ruling in November that upended the government's spending plans.

The economy ministry said Saturday that Sunday would be the last day prospective buyers could apply for the scheme, which paid out thousands of euros per customer to partially cover the cost of buying an electric car today.

A spokesman for the ministry admitted it was an "unfortunate situation" for consumers who had been hoping to take advantage of the subsidy, but it had no choice "because there is no longer enough money available."

Analyst Ferdinand Dudenhoeffer from the Center for Automotive Research warned the decision could have dramatic consequences amid a Europe EV slump already pressuring demand.

"The competitiveness of [auto] manufacturers will now be severely damaged," Dudenhoeffer told the Rheinische Post newspaper.

The Handelsblatt business daily had already warned that scrapping the scheme risked jeopardizing Germany's plans to get 15 million electric cars on the road by 2030, even though the EU EV share grew during lockdowns earlier in the pandemic.

"This goal was already considered extremely unrealistic. Now it seems completely illusory," it wrote.

In the UK, analysts warn that electric cars could cost more if a post-Brexit deal is not reached, underscoring wider market uncertainties.

A total of around 10 billion euros ($1.1 billion) has been paid out since 2016 under the scheme for around 2.1 million electric vehicles, according to the economy ministry.

Germany's flagship automotive industry, including Volkswagen, has been struggling with the transition to electromobility due to a weak global economy and low levels of demand.

In addition, it is facing a serious challenge from homegrown rivals in China, one of its most important markets, as France moves to discourage Chinese EVs with new rules.

"The Chinese are massively expanding their car industry because they have customers. Our manufacturers no longer have any," Dudenhoeffer said, as France's incentive rules make the market tougher for Chinese brands.

Germany's highest court decided last month that the government had broken a constitutional debt rule when it transferred 60 billion euros earmarked for pandemic support to a climate fund.

The bombshell ruling blew a huge hole in spending plans and plunged Chancellor Olaf Scholz's three-way coalition into turmoil.

After adopting an emergency budget for 2023, Scholz and his junior coalition partners battled for weeks before finally finding an agreement for 2024.

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SECCRA Waga Energy RNG Partnership captures landfill methane with WAGABOX, upgrades biogas to pipeline-quality RNG, enables grid injection, and lowers greenhouse gas emissions, delivering sustainable energy to Chester County homes and businesses.

Key Points

A joint project converting landfill methane to RNG with WAGABOX, cutting emissions and supplying local heat.

✅ WAGABOX captures and purifies landfill gas to RNG

✅ Grid injection supplies energy for 4,000+ homes

✅ Cuts methane and greenhouse gas emissions significantly

In a significant environmental initiative, the Southeastern Chester County Refuse Authority (SECCRA) has partnered with French energy company Waga Energy to convert methane emissions from its landfill into renewable natural gas (RNG). This collaboration aims to reduce greenhouse gas emissions and provide sustainable energy to the local community, echoing energy efficiency projects in Quebec seen elsewhere.

Understanding the Issue

Landfills are a substantial source of methane emissions, accounting for over 14% of human-induced methane emissions, according to the U.S. Environmental Protection Agency. Methane is a potent greenhouse gas, and issues like SF6 in power equipment further boost warming, trapping more heat in the atmosphere than carbon dioxide, making its reduction crucial in the fight against climate change.

The SECCRA-Waga Energy Partnership

SECCRA, serving approximately 105,000 residents in Chester County, processes between 450 to 500 tons of waste daily. To mitigate methane emissions from its landfill, SECCRA has partnered with Waga Energy to install a WAGABOX unit—a technology designed to capture and convert landfill methane into RNG, while related efforts like electrified LNG in B.C. illustrate sector-wide decarbonization.

How the WAGABOX Technology Works

The WAGABOX system utilizes a proprietary process to extract methane from landfill gas, purify it, and inject it into the natural gas grid. This process not only reduces harmful emissions, as emerging carbon dioxide electricity generation concepts also aim to do, but also produces a renewable energy source that can be used to heat homes and power businesses.

Environmental and Community Benefits

By converting methane into RNG, the project significantly lowers greenhouse gas emissions, supported by DOE funding for carbon capture initiatives, contributing to climate change mitigation. Additionally, the RNG produced is expected to supply energy to heat over 4,000 homes, providing a sustainable energy source for the local community.

Broader Implications

This initiative aligns with international clean energy cooperation to reduce methane emissions from landfills. Similar projects have been implemented worldwide, demonstrating the effectiveness of converting landfill methane into renewable energy. For instance, Waga Energy has successfully deployed WAGABOX units at various landfills, showcasing the scalability and impact of this technology.

The collaboration between SECCRA and Waga Energy represents a proactive step toward environmental sustainability and energy innovation. By transforming landfill methane into renewable natural gas, the project not only addresses a significant source of greenhouse gas emissions as new EPA power plant rules on carbon capture advance parallel strategies, but also provides a clean energy alternative for the Chester County community.

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India spot electricity prices surged on Q3 demand, lifting power tariffs in the spot market as discoms scrambled for supply; Sembcorp SGPL boosted PLF and short-term PPA realizations, benefiting from INR per kWh peaks.

Key Points

India spot electricity prices hit Q3 records amid demand spikes, lifting tariffs and aiding Sembcorp SGPL via PLF gains.

✅ Record 10.6 cents/kWh average; 15-minute peak 20.7 cents/kWh

✅ SGPL shifted output to short-term PPA at 7.3 cents/kWh

✅ PLF ramped above 90%, cutting core losses by 30-40%

Electricity prices in India, now the third-largest electricity producer globally, bolted to a record high of 10.6 cents/kWh (INR5.1/kWh) in Q3.

A jolt in Indian spot electricity prices could save Sembcorp Industries' Indian business from further losses, even though demand has occasionally slumped in recent years, UOB Kay Hian said.

The firm said spot electricity prices in India bolted to a record high of 10.6 cents/kWh (INR5.1/kWh) in Q3 and even hit a 15-minute peak of 20.7 cents/kWh (9.9/kWh). The spike was due to a power supply crunch on higher electricity demand from power distribution companies, alongside higher imported coal volumes as domestic supplies shrank.

As an effect, Sembcorp Industries' Sembcorp Gayatri Power Limited's (SGPL) losses of $26m in Q1 and $29m in Q2 could narrow down by as much as 30-40%.

On a net basis, SGPL will recognise a significantly higher electricity tariff in 3Q17. By tactically shutting down its Unit #3 for maintenance, Unit #4 effectively had its generation contracted out at the higher short-term PPA tariff of around 7.3 cents/kWh (Rs3.5/kWh).

SGPL also capitalised on the price spike in 3Q17 as it ramped up its plant load factor (PLF) to more than 90%.

“On the back of this, coupled with the effects of reduced finance costs, we expect SGPL’s 3Q17 quarterly core loss to shrink by 30-40% from previous quarters,” UOB Kay Hian said.

Whilst electricity prices have corrected to 7.1 cents/kWh (INR3.4/kWh), the firm said it could still remain elevated on structural factors, even as coal and electricity shortages ease nationwide.

Sembcorp Industries' India operations brought in a robust performance for Q3. PLF for Thermal Powertech Corporation India Limited (TPCIL) hit 91%, whilst it reached 73% for SGPL, echoing the broader trend of thermal PLF up across the sector.

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Cape Town Renewable Energy Plan targets 450+ MW via solar, wind, and battery storage, cutting Eskom reliance, lowering greenhouse gas emissions, stabilizing electricity prices, and boosting grid resilience through municipal procurement, PPAs, and city-owned plants.

Key Points

A municipal plan to procure over 450 MW, cut Eskom reliance, stabilize prices, and reduce Cape Town emissions.

✅ Up to 150 MW from private plants within the city

✅ 300 MW to be purchased from outside Cape Town later

✅ City financing 100-200 MW of its own generation

Cape Town is seeking to secure more than 450 megawatts of power from renewable sources to cut reliance on state power utility Eskom Holdings SOC Ltd., where wind procurement cuts were considered during lockdown, and reduce greenhouse gas emissions.

South Africa’s second-biggest city is looking at a range of options, including geothermal exploration in comparable markets, and expects the bulk of the electricity to be generated from solar plants, Kadri Nassiep, the city’s executive director of energy and climate change, said in an interview.

On July 14 the city of 4.6 million people released a request for information to seek funding to build its own plants. This month or next it will seek proposals for the provision of as much as 150 megawatts from privately owned plants, largely solar additions, to be built and operated within the city, he said. As much as 300 megawatts may also be purchased at a later stage from plants outside of Cape Town, according to Nassiep.

The city could secure finance to build 100 to 200 megawatts of its own generation capacity, Nassiep said. “We realized that it is important for the city to be more in control around the pricing of the power,” he added.

Power Outages

Cape Town’s foray into the securing of power from sources other than Eskom comes after more than a decade of intermittent electricity outages, while elsewhere in Africa coal projects face scrutiny from lenders, because the utility can’t meet national demand. The government last year said municipalities could find alternative suppliers.

Earlier this month Ethekwini, the municipal area that includes the city of Durban, issued a request for information for the provision of 400 megawatts of power, similar to BC Hydro’s call for power driven by EV uptake.

The City of Johannesburg will in September seek information and proposals for the construction of a 150-megawatt solar plant, reflecting moves like Ontario’s new wind and solar procurements to tackle supply gaps, 50 megawatts of rooftop solar panels and the refurbishment of an idle gas-fired plant that could generate 20 megawatts, it said in June. It will also seek information for the installation of 100 megawatts of battery storage.

Cape Town, which uses a peak of 1,800 megawatts of electricity in winter, hopes to start generating some of its own power next year, aligning with SaskPower’s 2030 renewables plan seen in Canada, according to a statement that accompanied its request for financing proposals.
 

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