1. CALIFORNIA MUNICIPAL RATE GROUP Residential Demand Charges
-- To be or Not to Be --
April 28, 2016 Los Angeles, CA
requirements/recover costs … in the face of flat or declining sales

2. SCPPA Rate Design Working Group
Formed in Q to:
Review Members’ existing rate structures
Assess potential changes to improve Utilities’ ability to meet revenue requirements
Made up of staff from 8 of 11 Member Utilities
Anaheim Imperial Irrigation District
Azusa Los Angeles
Banning Pasadena
Glendale Riverside

3. SCPPA Rate Design Working Group
Final Position Paper concluded:
Need to increase/improve fixed cost recovery
System-wide Demand Charges, Tiered Customer Charges …
Current net metering structure must change to provide fair and equitable revenue recovery from all customers

4. Residential Demand Charges
Cons
Costly for most utilities, requiring new:
demand meters
rates
billing systems (possibly)
“Complicated” for customers

5. Residential Demand Charges
Pros
Widely used in Comm/Ind sectors
Fair and equitable fixed cost/revenue recovery mechanism
“Accepted” by solar industry as alternative to higher fixed costs or minimum bills
LADWP 2016 Rate Case

6. Residential Demand Charges
Opportunities to Implement
AMI installed and operational
Correlate service panel size to a demand level
Correlate energy usage to a demand level
Sample existing housing stock actual demand levels and apply the level to similar (size & vintage) housing units

7. Residential Demand Charges
Possible added benefit with implementation
If Res (and/or Comm) rates are changed to bill demand on max “flow through meter” instead of use, utilities could charge for PV production if it is greater than the max energy use/demand – and still comply w/ Net Metering requirement

8. ADDED BONUS QUESTION

9. Power Factor Calculations
Has anyone figured out how to calculate a Power Factor for a net metered customer if your PF calc is based on lagging kVarh to kWh relation – but you don’t have the gen set metered?