SDG&E Non-residential Default Critical Peak Pricing Analysis of Enrollment Choices

In May 2008, SDG&E implemented a default critical peak pricing (CPP) tariff that applies to all non‐residential, bundled service customers with peak demands exceeding 20 kW who have interval meters.

Once SDG&E has completed full deployment of advanced meters, this critical peak pricing will be the default for all commercial and industrial customers. Customers defaulted onto the tariff were offered bill protection for the first year in order to provide them an opportunity to test the tariff without risk. Customers that chose to remain on the CPP rate were provided the opportunity to insure against bill volatility by protecting a portion of their load from the high energy prices during the peak period on critical event days. In 2009, roughly 600 additional customers were defaulted onto default dynamic pricing. In addition, 2008 enrollees whose bill protection was scheduled to expire were presented a shadow bill—a comparison of bills on default CPP and the opt-out time-of-use tariff—and asked to decide whether to remain on the default tariff.

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