Customer Generation Departing Load

Customer generation departing load is the portion of a Pacific Gas and Electric Company electric customer's load for which the customer, on or after December 20, 1995:

• Discontinues or reduces its purchases of bundled or direct access electricity service from PG&E.
• Purchases or consumes electricity supplied and delivered by customer generation to replace the PG&E or direct access purchases.
• Remains physically located at the same location within PG&E's service area as it existed on April 3, 2003.

Customer generation means cogeneration, renewable technologies or any other type of generation that is dedicated wholly or in part to serve all of a portion of a specific customer’s load or relies on non-PG&E or dedicated PG&E distribution wires rather than PG&E’s utility grid. Reductions in load are classified as customer generation departing load only to the extent that such load is subsequently served with electricity from a source other than PG&E.

Customers who intend to depart must provide PG&E’s designated representative with a notification letter (PDF, 21 KB) at least 30 days in advance of the discontinuation or reduction of electric service from PG&E. This letter should include the estimated date of departure or reduction in load, a description of the load that will depart or be reduced, the PG&E account number assigned to this load, the type of customer generation technology, customer’s selection of the basis for calculating applicable nonbypassable charges, and identification of the exemptions that the customer believes are applicable to the departing load.

Nonbypassable charges involve costs that have historically been included in bundled service bills but are now separately listed as line items. Customer generation departing load customers may receive bills from PG&E for these charges even if they no longer receive electric service from the company. Nonbypassable charges that may apply include:

Public Purpose Programs — Funds efforts considered by law to benefit society, such as low-income ratepayer assistance and energy-efficiency programs.

Nuclear Decommissioning — A fee to restore plant sites to as near their original condition as possible once they are shut down.

Trust Transfer Amount (TTA) — The cost of repaying state-authorized bonds used to refinance — at better terms — a portion of past investments previously included in rates and authorized by the CPUC. This charge applies only to accounts qualified for the 10 percent rate reduction.

In Decision 03-04-030, the California Public Utilities Commission (CPUC) determined that customer generation departing load customers may also be required to pay a Cost Responsibility Surcharge (CRS). The CRS includes the following nonbypassable charges:

• Department of Water Resources (DWR) Bond Charge — recovers past under collections of DWR procurement costs initially paid out of the state's general fund and later repaid from the proceeds of DWR's bond issue
• DWR Power Charge — recovers DWR's going-forward uneconomic power contract costs
• Regulatory Asset Charge — recovers costs associated with the regulatory asset adopted by the CPUC in Decision 03-12-035
• Competition Transition Charge (CTC) — recovers the utilities' uneconomic power contract and employee transition costs

If you believe your generating facility should be exempt from some or all of these charges, you will need to complete an Application for Customer Generation Cost Responsibility Surcharge Tariff Exemption (PDF, 80 KB). A completed application must be sent to both PG&E, to determine tariff exemption eligibility, and to the California Energy Commission (CEC) to execute its responsibilities with regard to managing the statewide megawatt cap. PG&E will first make a provisional determination as to whether the generating facility qualifies for available exemptions. You need not submit an application if the customer generation system is "clean" (including net-metered systems), under 1 megawatt (mw), and eligible for participation in either the CPUC's self-generation incentive program or similar CEC program.

If you believe your facility should be exempt from the CTC, you must submit an Affidavit in Support of Claim of Competition Transition Charge Exemption Under Public Utilities Code Section 372 (PDF, 52 KB). However, if you complete an application, you need only sign the affidavit and attach the application. The affidavit should be submitted to PG&E with your notification letter.

Likewise, if you believe your facility should be exempt from the DWR Power Charge, you must submit an Affidavit in Support of Claim of DWR Power Charge Exemption Under Public Utilities Code Section 353.2 (PDF, 54 KB). However, if you complete an application, you need only sign the affidavit and attach the application. This affidavit should also be submitted to PG&E with your notification letter.

Within 10 calendar days of receipt of the completed and signed application, PG&E will notify you in writing of the following:

• Provisional categorization of the generating facility.
• Conditions that must be met before final categorization will be granted.
• A description of the Cost Responsibility Surcharge (CRS) that you will be exempt or not exempt from paying.

Final categorization and notice will be made only after PG&E and the CEC confirm that the installation qualifies for the exemption

Decision 03-04-030 determined that the obligation of customer generation departing load customers to pay the DWR Bond Charge, the Regulatory Asset (RA) Charge, the DWR Power Charge and the CTC varies depending upon a number of factors, including the customer’s date of departure and the type of technology installed.

Any customer departing prior to February 1, 2001, is exempt from the DWR Bond Charge, the DWR Power Charge and the RA Charge since its departure precedes the entry of the DWR into the market. These customers may, however, be obligated to pay the CTC unless they are otherwise exempted.

In addition, customer generation departing load customers who commence commercial operation on or before January 1, 2003, or who applied for authority to construct prior to August 29, 2001, and commenced commercial operation on or before January 1, 2004, are exempt from the DWR Power Charge and the RA Charge. These customers may be further exempted from additional charges depending on the type of technology installed.

"Clean" customer generation (including net-metered systems) under 1 mw eligible for participation in the CPUC's self-generation incentive program or similar CEC program are automatically exempt from paying the CRS. Such generation still counts toward the statewide megawatt cap. "Ultra-clean and low emission" customers over 1 mw, and other types of customer generation subject to the statewide cap, may also qualify for certain exemptions. Exemptions provided for in Decision 03-04-030 are discussed in greater detail in PG&E's Advice Letter 2375-E-B and Electric Rate Schedule E-DCG.

Departing customers should work with their company representative to ensure that any exemptions are properly declared in their notice of departure to PG&E. A company representative can also help determine the applicability of standby service, capacity factors, peak shaving and Rule 21 incentive programs. Departing customers may also contact the Business Customer Center at 1 (800) 468-4743 for assistance.

In its tariffs to implement Decision 03-04-030, PG&E has proposed to calculate monthly bills based on actual metered data of the customer's departing load, the applicable rate schedule and the appropriate billing components, such as CTC, PPP, ND or TTA. PG&E has also proposed that, if in the opinion of PG&E, installation of a meter to measure the departing load is impractical, the amount of departing load will be estimated in a manner to be approved by the CPUC’s Energy Division.