What is 3CE's Cost of Service (COS) Rate Structure?
3CE proposes to implement the first cost of service rate structure of any Community Choice Energy (CCE) program in California pending the support of 3CE’s Policy Board of Directors. The goal of implementing this new rate structure is to benefit 3CE customers by providing predictability, simplicity, fairness and competitiveness.
3CE launched service in 2018 based on the existing CCE program rate structure of mirroring the investor-owned utility’s (IOUs) rates and then applying a discount inclusive of relevant fees. This approach poses some problems, including frequent rate changes, subsidizing some customer segments, and complex customer plan choices. Most IOUs, including PG&E and SCE can change several times a year, and typically change their rates no less than once a quarter, often by increasing them, causing rate uncertainty across all customer segments.
With our current rate structure 3CE also needed to adjust its rates in order to continue mirroring the IOU rates and applying our discount. The first of its kind proposed COS rate structure would among other things ensure no rate increases for three years. Read on to learn more:
THE FOUR PRINCIPLE GOALS FOR 3CE'S COST OF SERVICE RATE STRUCTURE:
What are the Benefits of Cost of Service Rates for 3CE Customers?
Predictability & Simplicity:
3CE’s Cost of Service rate structure will provide rate benefits including improved predictability through long-term rate adoption. Under the current structure, PG&E changes its customer rates no less than 4 times a year, typically increasing them while Net Surplus Compensation rates for Net Energy metering customers change monthly. 3CE seeks to adopt a new rate structure and NSC rate for a proposed three-year term following 3CE board approval in June 2021.
Fairness and Competitiveness:
The proposed Cost of Service changes also takes into account what it costs to serve each customer segment and helps to ensure certain customers no longer pay more as a function of subsidizing other customer segments as they do under the current IOU rate structure model. 3CE’s commitment to providing rate benefits and GHG reducing energy programs will continue as core goals of the agency.
Please review the below FAQ and view the recorded workshops below for more information:
Learn More About Cost of Service and Provide Your Feedback
Cost of Service Virtual Workshop Videos:
Net Energy Metering (NEM)
Solar and Wind COS Workshop
March 17, 2021 at 5pm
April 13, 2021 at 12pm
April 20, 2021 at 12pm
April 27, 2021 at 5pm
COS Workshop in Spanish
May 27, 2021 at 6pm
Please note: The Agricultural workshop stopped recording 30 minutes in due to loss of connection.
Ag customers, please refer to the commercial customer COS workshop for more information.
Customers are encouraged to attend the workshop and submit any feedback to info@3CE.org in order for staff to tally relevant questions, ideas and community input. We look forward to seeing you virtually at your upcoming Cost of Service workshop. Please register in advance above.
Cost of Service Rollout Schedule
March and April 2021
3CE is hosting customer workshops to gather input from the various customer segments. Recordings of the workshops will be made available. (see workshop links above)
May and June 2021
3CE seeks board approval for proposed Cost of Service Rate Structure with the implementation date of January 2022
July/August – September/October 2021
3CE is scheduling an email and mailed notification to all customers addressing the opportunity to choose between the COS Default and Alternate Flat Rate Options. Resources will be made available including a COS rate comparison calculator
October 15, 2021
If you do not want the 3CE Cost of Service Rate beginning January 1, 2022, you may choose the 3CE flat rate up through October 15, 2021. If you do not choose the flat rate, the Cost of Service rate schedule will begin January 1, 2022
General customer transition to 3CE cost of service (3CE communities within PG&E service territory)
How will Cost of Service Work for 3CE Customers?
Cost of Service rate structure has been designed to base rates on the cost to serve different customer segments including clean energy procurement, administration, energy programs, and rate stabilization funding over a period of time. 3CE staff has collaborated with its rate consultant to design rates to meet the following criteria and goals: