Rate Designs for Beneficial Electrification in California

Sierra Club
Project Completed May 2022

On behalf of the Sierra Club, Melissa Whited provided expert witness testimony regarding San Diego Gas & Electric’s (SDG&E) proposed beneficial electrification rate design, "TOU-ELEC." Synapse modeled the potential energy cost savings of the rate for customers who fully electrify their homes, as well as the associated reductions in greenhouse gas emissions. In addition, Synapse evaluated the reasonableness of the overall rate design.

Although the proposed rate schedule TOU-ELEC would likely allow customers who electrify to reduce their total energy costs, Synapse found that the rate's reliance on non-coincident peak demand is not cost-based and could result in perverse customer behavior. Further, Synapse found that SDG&E's super-off-peak periods are outdated and do not reflect the fact that energy costs and emissions are currently lowest during the middle of the day. Thus, Ms. Whited made several recommendations for modifying the rate to be more cost-reflective and promote greater emissions reductions.