rates for residential 161 Exh. SDG&E-117, SMUD before forecasts such See, e.g., ratepayers in as EDF’s can be used SmartPricing Options Interim Evaluation at California. EDF to demonstrate GHG 1 of 195 (SMUD committed ... reduce “has provided testimony, reductions as a the greenhouse gas emissions that comments and significant goal of contribute to global warming and lower the evidence on the TOU rates.” cost to serve our region.”); D.08-07-045 possible benefits on (stating that linking retail rates to GHG emissions, “[b]y long-term costs and wholesale market conditions, dynamic ratepayer choice. pricing can discourage customers from consuming polluting power. Conversely, if other time periods are dominated by and low-cost resources such as nuclear, water and wind, dynamic pricing could signal to customers that the supply of power is clean.”); Exh. EDF-102 at 13.” Pages 76-77 and EDF both argue that TOU rates will “ORA likely lead to overall reductions in usage, not just a shift from peak, but these load reductions were not modeled rigorously. EDF’s assessment that TOU rates will lead to GHG reductions is based in part on an assumption that TOU rates will reduce total consumption.” Page 80 Yes, however EDF’s Benefits of TOU 4.5 Expected Long-Term Cost Savings from TOU savings Rates TOU Rate estimates were mostly theoretical and led the Commission to require cost savings have also been cited as a “Long-term the utilities to develop benefit of TOU rates.168 ORA argues that savings estimates. rates will result in significant long-term cost savings due to deferral of system upgrades and the need for new generation.169 ORA estimates that TOU rates (as proposed by ORA in May 29, 2013 filing) would result in a 2,400 MW peak load reduction, is equivalent to the size of one “which nuclear power plant.”170
rates for residential ratepayers in California. EDF provided testimony, comments and evidence on the possible benefits on GHG emissions, long-term costs and ratepayer choice. 161 See, e.g., Exh. SDG&E-117, SMUD SmartPricing Options Interim Evaluation at 1 of 195 (SMUD “has committed ... reduce the greenhouse gas emissions that contribute to global warming and lower the cost to serve our region.”); D.08-07-045 (stating that “[b]y linking retail rates to wholesale market conditions, dynamic pricing can discourage customers from consuming polluting power. Conversely, if other time periods are dominated by and low-cost resources such as nuclear, water and wind, dynamic pricing could signal to customers that the supply of power is clean.”); Exh. EDF-102 at 13.” Pages 76-77 “ORA and EDF both argue that TOU rates will likely lead to overall reductions in usage, not just a shift from peak, but these load reductions were not modeled rigorously. EDF’s assessment that TOU rates will lead to GHG reductions is based in part on an assumption that TOU rates will reduce total consumption.” Page 80 before forecasts such as EDF’s can be used to demonstrate GHG reductions as a significant goal of TOU rates.” Benefits of TOU Rates 4.5 Expected Long-Term Cost Savings from TOU Rate “Long-term cost savings have also been cited as a benefit of TOU rates.168 ORA argues that rates will result in significant long-term cost savings due to deferral of system upgrades and the need for new generation.169 ORA estimates that TOU rates (as proposed by ORA in May 29, 2013 filing) would result in a 2,400 MW peak load reduction, “which is equivalent to the size of one nuclear power plant.”170 Yes, however EDF’s TOU savings estimates were mostly theoretical and led the Commission to require the utilities to develop savings estimates.
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