SDG&E Proposes Peak-Hour Pricing

Anticipating electricity shortages as soon as this summer, Sempra's San Diego Gas and Electric is proposing hiking their tariffs during peak consumption hours:

The high rates are expected to yield only modest reductions in demand, but they underscore the growing urgency among regulators to balance electricity supply and demand this summer.

The so-called Critical Peak Pricing plan would triple electricity costs for the largest commercial customers – enterprises using as much or more power than big-box retail stores or supermarkets – between 3 and 6 p.m. on days when the plan is in effect. Those hours are when power consumption is typically the highest and most difficult to meet.

The rates would be twice as high as those imposed even during the worst of the state's 2000-2001 power crisis.

SDG&E's plan, which must be approved by the PUC, would also roughly double electricity costs for these big customers between 11 a.m. and 3 p.m. on emergency days.

This is a good move towards getting wholesale and retail electricity prices in-line with each other...