Close to Home: Get involved in setting local power rates

In the world of energy, everything seems complicated. And it is. What is not complicated is what users or ratepayers see on their monthly bill, which is preceded by 'Pay this:'.

That total amount varies for most households with the seasons and daily usage. It is the amount we either write a check for or is automatically paid electronically.

Recently, PG&E raised its rates and fees. These increases took effect on Jan. 1, and some of the changes impact Sonoma Clean Power customers because PG&E still charges everyone to maintain the poles and wires of the grid.

A big increase in one of PG&E's fees, called the 'power charge indifference adjustment,' means that Sonoma Clean Power customers are now saving between 1 percent and 2 percent on their total electric bills. That's still good, but the fee ate into the big savings of the past two years, when customer bills were between 6 percent and 11 percent lower.

It's disappointing to see the savings shrink, but the same market forces that cause PG&E's fees to go up also give our local power provider the ability to buy more energy at lower prices. And costs are declining even as Sonoma Clean Power cuts its use of natural gas and has purchased 20 percent of its energy from sources inside Sonoma County.

Sonoma Clean Power is looking financially strong heading into its budget and rates process. Staff members are recommending rates that would produce a 2 percent discount to PG&E's total electric costs.

Generation rates for electricity are set based upon the costs of energy, PG&E fees and surcharges and other miscellaneous costs. Since Sonoma Clean Power began back in May 2014, total customer rates have been lower than PG&E's total rates. Sonoma Clean Power has already saved Sonoma County customers more than $50 million on electric bills since the agency launched.

Through a series of public meetings beginning this month, Sonoma Clean Power is reviewing its budget and establishing rates for the upcoming fiscal year (July to June). The first meeting is of the Ratepayers Advisory Committee on Tuesday. This committee is composed of residential, commercial and industrial volunteer members. It is a citizen advisory committee that will review all available information and make recommendations to the Sonoma Clean Power Authority board of directors. The board is composed of city, town and county representatives. Once the board members have reviewed the committee's recommendations, they will make their own. Staff will then make appropriate changes to the budget and rates and return to the Ratepayers Advisory Committee for its final review and recommendations. Staff will then present the final budget and rate structure to the board for its approval.

The committee, staff and Sonoma Clean Power board of directors will be balancing the five purposes of the joint powers agreement:1) Reducing greenhouse gas emissions; 2) Providing electrical power at competitive rates; 3) Providing programs to reduce energy consumption; 4) Developing local jobs in renewable energy; and 5) Promoting long-term electrical rate stability and energy security. These purposes are not mutually exclusive, but the degree of importance each has in establishing rates is where most of the discussion will take place.

We encourage your participation. Please join us at the Raterpayers Advisory Committee meeting on Tuesday and the board meeting on March 3. Final approval is expected to occur on May 5. For more information, visit www.sonomacleanpower.org.

Arthur Deicke is chairman of the Sonoma Clean Power Ratepayers Advisory Committee.