Valley Clean Energy is here: Choice is good for solar homeowners

Change can be a good thing. Or, it can be bad. Or, somewhere in between.

Choice, however, is good. If you had one option — for anything you do or buy — you’re stuck. You have no choice and must opt for the sole solution.

Choice enables consumers to make a decision, to weigh options and decide what’s in their best interest. Choice makes markets healthy and efficient, thus benefiting consumers.

For the past few generations, Yolo County residents have not had a choice regarding their electricity: PG&E, the de facto monopoly, was it. That ceased in June with the debut of Valley Clean Energy (VCE). Though nothing changed with our electricity delivery, customer service and billing, VCE was a change that confused some. This is understandable: Consumers now had a choice.

As we’ve shared in prior posts (here, here and here), if you do not have solar panels, VCE is a no brainer: Participate and you’ll save a few bucks each month while reducing your carbon footprint. Or, stick with PG&E and pay more to an investor-owned utility for dirtier energy. Case closed.

Furthermore, if you have solar or are considering going solar, VCE is a viable option. It provides solar homeowners with a choice for how to net-meter their electricity.

When VCE commenced its solar net-metering program in June, we identified and shared a few (in our opinion) flaws to their accounting methodology. In short order, VCE staff absorbed our input, consulted the public, and amended their solar program. This efficient, transparent and productive process evidences the virtue of a publicly-controlled program. (Imagine trying to get PG&E to modify their solar program … no chance.)

Effective January 1, 2019, VCE’s new net-metering program will take effect and homeowners with solar will have a choice. Here’s a quick summary:

• If you installed solar before June 1, 2018 you will stick with your annual true-up date (that you currently employ with PG&E) and you will be enrolled in VCE’s program at your true-up.

• If you went solar after June 1, 2018, your annual true-up date will be in March.

• In both cases, your net-metering accounting will occur every month (versus once/year with PG&E). At the end of your 12-month solar accounting calendar, your true up ($) will be the same, except …

• … with VCE, if your solar system generates more electricity than you use in a given month, you will receive an additional one-cent per kWh credit.

Importantly, when you go solar, you receive “permission to operate” from PG&E and you are grandfathered in for 20 years under the prevailing (California Public Utilities Commission mandated) net-metering program. Participating in VCE’s net-metering program does not impact your 20-year utility agreement. (This is critical; we received written acknowledgement from PG&E.)

So, congratulations, you now have a choice. Options are good and, for solar homeowners, VCE will put a few extra dollars in your pocket without harming your solar interconnection agreement.

Feel free to stop by our workspace or contact us with questions. Viva community choice!

Understanding your PG&E-Valley Clean Energy Bill

Valley Clean Energy (VCE) commenced service as an alternative electricity provider June 1. As discussed here, this is great news … your electricity costs will be reduced by ~2-3% and you will enjoy (though you can’t see/taste/touch the electrons!) cleaner electricity. (If you’re among the 7,000 property owners in Davis, Woodland and unincorporated Yolo County who have already gone solar, this article has no utility for you; here’s a recent article about Valley Clean Energy’s Net Energy Metering program.)

Now that we’re a few months into VCE’s service, many homeowners are trying to interpret their new (PG&E + VCE) electricity bill. Here’s a quick tutorial:

• Page three of your PG&E statement quantifies your electricity use and charges. (Yes, July was a brutally warm month; electricity use/costs are quite high for most everyone.) Therein, you will see two additions:

1. A Generation Credit representing your Valley Clean Energy credit for the electricity generation component of your use.
2. A Power Charge Indifference Adjustment, essentially the fee PG&E charges to participated in VCE.

Next, turn to page four to review “Details of VALLEY CLEAN ENERGY ALLIANCE Electric Generation Charges”. Per the below, there is a net charge of $93.28.

Finally, simple math to determine how much you will pay relative to PG&E:

- VCE Electricity Generation Charge: $93.28

- Power Charge Indifference Adjustment: $43.90

- Less, PG&E Generation Credit: -$141.43

Hence, under the above scenario the homeowner saved $4.25 this month through VCE.

Annualized, this homeowner will save ~$40 for participating in VCE. It’s not enough to buy a bottle of Jordan cab, but perhaps you can enjoy a tasty meal at Mikuni’s.

Valley Clean Energy works.

Valley Clean Energy + Solar: Just the facts

Our community cares. A lot, about a lot of stuff. With conviction, unfortunately, there’s oftentimes confusion. Valley Clean Energy (VCE) is a contemporary example.

On April 18, we provided our perspective regarding VCE. In short order, it became the most-read blog post in the history of our site. Again, lots of curiosity (and some confusion), especially via several NextDoor threads.

As we originally opined, if you do not have solar, VCE is a no brainer: Do it (read: do not opt out) and you’ll save a few bucks and enjoy cleaner electricity. Nothing changes with your service — PG&E still manages the grid and bills you. There’s no downside (unless you’re an anti-government conspiracy theorist). Effective June 1, you were enrolled in VCE … enjoy!

Back in April, we were less definitive about VCE for the ~7,000 NEM (net-energy metering, or solar) customers in Davis, Woodland and unincorporated Yolo County. At that point, our recommendation was to love the one you’re with: Stick with PG&E until a few details (read: our concerns) were ironed out. Thereafter, we invested considerable time working with VCE staff to mitigate our concerns and improve VCE’s net-metering program. We also recommended they put the program on hold.

Fortunately, VCE was all ears and brains: They tabled the NEM program, listened to our concerns, analyzed our recommended changes, and revised their net-metering program. Then, they held public forums in Davis and Woodland … more than 90 people attended each. VCE is diligently doing the right thing.

We reached out to Jim Parks, Director, Customer Care and Marketing with VCE, for his perspective:

Here is what we are proposing, pending VCE Board approval in September.

• Residential NEM customers will keep their annual billing cycle unless their annual balance exceeds $500.  Then they will go to monthly billing.
• NEM customers will retain their existing true-up date.
• VCE pays 1 cent per kWh more than PG&E for excess energy on a monthly basis. This will roll over as credits during excess generation months and will be trued-up on the annual true-up date if needed.  Over $100  credit balances will be paid to customer. Under $100 balance will roll over as a credit.
• For excess energy at the end of the year, VCE pays what PG&E pays (wholesale) plus 1 cent per kWh, providing a financial benefit to NEM customers.
• The transition from PG&E to VCE will occur on the customers true-up date in 2019.  This means that NEM customers will be moving to VCE over the course of the entire year, depending on their true-up date.

The transition from PG&E to VCE will be seamless to NEM customers and they will automatically receive the higher incentives that VCE provides. Customers also receive other VCE benefits including choice of providers, local control, higher levels of green and carbon-free energy, and reinvestment in the community.

Thanks, Jim. Count us in. 

And, a final note: This process of rapid improvement and adaptation would not occur with an investor-owned utility. VCE listened to its constituents, applied common sense and logic, and improved their solar program … in a matter of months. Yet another reason why local control makes sense, let alone the virtues of reducing utility bills and our carbon footprints.

Feel free to contact us or stop by if you’d like to discuss further.