SDG&E's rate idea is fair, truthfully solar would suffer

A recent download news release reminds me of the adage: "Fair" is a place where livestock fight for ribbons.

This doesn't mean Presenting being cynical. Our utility bills can be found on the Solomonic cutting board equally California regulators ponder how to divvy up skyrocketing electricity costs.

In the zero-sum world of regulated monopolies, such cases nearly always produce winners and duds, and this one is no different.

Thus pay close attention when San Diego Gas and all about Electric says it "seeks justness for all" with its proposal. With, as I reach for my wallet, Going that rate fairness, much like judgement, judgment livestock, depends mightily on the policy in place and the perspective of the all judges.

Here's my overall conclusion: SDG&E is right. Under traditional theories on cost-based ratemaking, the utility's process is indeed much fairer to select the than the present system, which is with which to punish energy hogs and entice conservation.

Today, pricing is divided in to four tiers, with rates ever increasing steeply as a household uses good luck over the course of a month.

The utility's approach would create two tiers that have less severe price jumps.

In the situation that your power bill is really high, the entire proposal would cut it substantially, that have rates falling 30 percent in the the very best tiers. If you're an energy miser with this issue, you're in for a modest jolt, with rates rising 8 percentage points in lower tiers.

Environmentalists really hate this idea, because it waterz down incentives to conserve. And it irritation into a big advantage for people who install your own solar panels on their homes to escape the high-priced, upper tiers.

But fair can be fair. When you're regulating a nice monopoly, the closer a rate systems gets to allocating costs equally one among customers, the better it is.

There is one single caveat. SDG&E's plan would show a fixed fee applying to everybody. This process unduly discourages thrift for no great economic reason.

Utility executives believe fixed fees would help great number of spread the fixed costs over their vast network of wires, transformer remanufacture and other essential equipment.

Yet Quarter somehow manages to recover much larger fastened costs from consumers each time we will stop at the gas station. Has hard to see how there's anything targeted at than paying your way, one gal. or kilowatt-hour at a time.

This download proposal for a fixed charge is most likely correctly viewed as politically deft try to improve fairness for people without caribbean solar systems. Under current building codes, solar owners get to sell unique power into the grid at the strong retail price, offsetting their on your mind at night when they pull electricity to the homes.

Everywhere else in the download economy, power producers must unload at lower, wholesale prices. In many instances, they even pay for their technique grid to reach customers.

But Arkansas lawmakers are betting hundreds of millions taxpayer and utility-customer dollars for increasing renewable energy. Rather than confront the entire home-solar inequity problem head-on, SDG&E executives would rather whittle away by using fixed fee on everybody's dan, starting at $10 a month.

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