By tackling peak energy use and carbon emissions head on, SMUD's Compact with the Customer will help ensure a more sustainable world for future generations.
The Compact with the Customer takes a variety of approaches. SMUD will boost its supplies of renewable energy and become one of the most energy-efficient regions in the state through new programs and rate signals. SMUD is taking a broad look at rates and how it can use two-way meters to give price signals to customers and encourage them to reduce their energy use.
May 2007 SMUD's Board of Directors voted to approve energy efficiency goals that exceed state requirements by 50 percent. SMUD will help customers reduce energy consumption by 15 percent over the next 10 years. The higher level of efficiency would reduce peak generation requirements by 570 megawatts by 2017.
For 2008, the Board has approved a new financial target based on cash flow. The new rates for 2008 - a 7-percent increase on Jan. 1 - were set by the Board to meet this new target and cover the new efficiency and solar programs.
A SMUD executive has said, the cost of solar is baked into the rates and selling SolarShares Commercial for nine cents a kWh when the cost of a kWh is seven cents, is a increase in revenue and the customer gets what they want. What customer this he talking about? Watch the full SMUD video here.
What does it mean to "bake into the rates"?
Are all customers paying for renewable electricity that others are claiming as their own?
Please consider the above in reviewing SMUD General Manager Arlen Orchard's rate proposal as he appears to be ill informed as to the history of SMUD (Compact with the customer) and appears to be unfair to many SMUD Customer-owners (baked in to the rates).
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A look at the CAISO Duck Chart
Using power when solar output is high helps in meeting the California Renewable Portfolio Standard (RPS). If the "net load" drops too far (<12Gw for CAISO), solar power will be curtained to protect the power grid.
A summer week, why does SMUD want to charge more even when the average peak is low?
Would it be better to tier the use in a given hour, such as the first 2 kWh costs $0.12, then the next 2 kWh costs $0.18, then the next 2 kWh costs $0.36, then the next 2 kWh costs $0.54, then the next 2 kWh costs $0.87, then each additional kWh costs $1.33
SMUD Board please consider adding my alternate rate schedules and exploring the many other rate products that can be developed through the close collaboration between SMUD staff and the public, with the staff providing the required data and the public suppling the computational analysis to form rates that will meet California's energy goals and give SMUD Customer-Owners more choices.
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