Order Instituting Rulemaking to Assess Peak Electricity Usage Patterns and Consider Appropriate Time Periods for Future Time-of-Use Rates and Energy Resource Contract Payments.


The Time of Use Order Instituting Rulemaking (TOU OIR) provides a venue for development of a framework for designing, implementing, and modifying time periods for use in future time-of-use (TOU) rates. This effort will include development of the principles, methodologies, and data sources needed to identify TOU periods that better reflect actual and near-term expected electricity supply and demand.

A coordinated review of current and potential future peak electricity usage patterns for electric utilities, as well as low usage periods when renewable energy may be curtailed due to oversupply conditions, will be a fundamental part of this effort. Review of this information will assist the Commission in determining whether peak usage periods (periods during which electricity costs are especially high) may be shifting to later in the day, as has been suggested by the California Independent System Operator (CAISO) and others. A January 28th, 2016 ruling set dates for party comments, workshop, and prehearing conferences.

On March 17, 2016, an ALJ Ruling was filed and directed the IOUs to develop an hourly marginal generation cost analysis, based on data from the most recently available rate proceedings, in consultation with Energy Division staff, CAISO, and other interested parties. Based upon feedback from the IOUs and interested parties, an ALJ Ruling was issued on May 16th, 2016 that invited parties to work with Energy Division to set up a technical workshop. Subsequently, a technical workshop was scheduled for June 8th.
A decision in this proceeding is expected later in 2016. This decision is expected to contain guidelines for the utilities in designing TOU rates, but will not set the rates themselves. Rates will continue to be set in GRC Phase 2 and Rate Design Window proceedings.


Meetings/Events and Associated Documents


For questions about the R.15-12-012 proceeding, please contact Robert Levin at rl4@cpuc.ca.gov or (415) 703-1862 or Rajan Mutialu at rm3@cpuc.ca.gov or (415) 703-2039.