Sustainable Ag Expo Time-Varying Pricing for Agriculture Customers

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1 Sustainable Ag Expo Time-Varying Pricing for Agriculture Customers PG&E refers to the Pacific Gas and Electric Company,a subsidiary of PG&E Corporation Pacific Gas and Electric Company. All rights reserved.

2 Time-Varying Pricing and the CPUC Achieve clean, efficient energy goals Ensure grid reliability The California Public Utilities Commission ( CPUC ) Reduce greenhouse gas emissions Meet peak energy demand 2

3 What Is Time-Varying Pricing? Price of Electricity Part of state-wide plan to reduce demand peaks Business electric rates will vary by time of day Time of Day Time of Day 3

4 Key Terms Cost per kwh Off-peak Partial-peak On-peak Partial-peak Off-peak Current Flat Rate 4

5 Peak Day Pricing Time of Use Price of Everyday Energy Additional Event Day electricity conservation incentives 9-15 days/year Substantial credits toward electricity use on other days Peak Day Pricing Event Day Hours 9-15 Days Per Year Credits Credits Credits 5

6 Key Dates When will eligible California businesses transition to Time-of-Use or Peak Day Pricing? Customer Group Plan Transition Date Large Commercial & Industrial (> 200 kw) Peak Day Pricing May 1, 2010 Large Agricultural (> 200 kw) Peak Day Pricing February 1, 2011 Small & Medium Business (< 200 kw) Time-of-Use November 1, 2012 Small Agricultural (< 200 kw) Time-of-Use March 1, 2013 Small & Medium Business (< 200 kw) Peak Day Pricing November 1,

7 Evaluating Your Rate Options

8 Evaluate Your Options Contact PG&E s Agriculture Hotline: FARM Choose Time-of-Use or Peak Day Pricing 8

9 Choosing Peak Day Pricing Have energy use scheduling flexibility Can shift demand outside peak days and hours Can accommodate energy costs changing from month to month 9

10 Peak Day Pricing Advantages Bill Protection allows Peak Day Pricing customers to participate risk-free for the first year. Maximum potential cost savings Bill Protection Credit if Peak Day Pricing exceeds Time-of-Use Pricing 10

11 What Rate Is Best for My Business? Daily energy use Seasonal energy use Hours of operation Equipment and/or process uses Tolerance for month to month bill variances 11

12 Rate Assistance and Customer Resources PG&E Is Here to Help New MyEnergy website tools New PG&E Time-Varying Pricing website Custom rate comparison 12

13 Effective Ways to Manage Your Energy Costs

14 30 Years of Energy Efficiency Success California s per capita consumption has not increased significantly since 1976

15 3-Step Plan Energy Efficiency Permanent Reduction in Usage Conservation Temporary Reduction in Usage Self- Generation Create Your Own Energy

16 Why the 3-Step Plan? = 200 watts Est Cost $4.00 to 240 watts saved 75w/bulb 15w/bulb Est Cost $4.00 solarizing inefficiencies isn t cost effective

17 Energy Management Energy conservation tips Free energy use assessments and bill analysis at Facility energy management planning including PG&E rebate and incentive programs 17

18 Tips for Conserving Electricity Turn down or cycle fans and air circulation equipment. Shift irrigation tasks or operational processes to off peak times Adjust production and employee schedules away from peak hours Pre-cool, then float or cycle refrigeration 18

19 Understanding Energy Use and Planning Make an action plan: Identify Plan Communicate Automate 19

20 Energy Management Plans and Efficiency On-Bill Financing Loans for commercial energy efficient retrofit projects Cash Rebates Lighting & Controls Drip Irrigation Low Pressure Sprinkler Strip Curtains Greenhouse heat New Construction Customized Incentives Enhanced lighting design Chiller replacement Variable speed drive (VSD) installation Boiler heat recovery Third Parties VACOM Global Energy Partners Enovity 20

21 APEP: Advanced Pump Efficiency Program Program managed by CSU Fresno Ag Subsidized pump testing Incentives for up to 50% of the pump repairs Apply through your rep or

22 Self Generation & Incentives. Solar Solar Water Heating Wind Fuel Cell

23 Next Steps

24 Key Take-Aways Small agriculture customers will be moving to Time-Varying Pricing Time-of-Use Peak Day Pricing (optional) 24

25 Key Take-Aways PG&E is here to help Rate Analysis options My Energy Energy assessments Energy Management programs 25

26 Start Preparing Send us an - Or call PG&E s Agriculture Hotline: FARM (3276) Tools & Resources Log on to My Energy Visit PG&E s Time-Varying Pricing Website Find out more about energy efficiency rebates, incentives & On-Bill Financing 26

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