AB 327's Solar Threat: A Fact Sheet
What does AB 327 (Perea) say exactly?
AB 327, authored by Assemblymember Henry Perea (D-Fresno), is a residential rate reform bill that requires the following:
What exactly is tiered pricing?
Example of Summer Tiered Pricing in San Diego
What does it mean to flatten rates?
What is Time-of-Use pricing, or Time-Variant pricing?
One argument against both rate designs is that someone living in the Central Valley has a harder time reducing their air conditioning usage on hot summer days than, for example, their laundry usage. In other words, it is easier to curb use of non-essential appliances during peak time-periods than it is to curb essential appliances, like air conditioners. However, California’s peaking power plants are typically the dirtiest, adding pollution during the time of day/year that California has the worst air quality. Peak demands also dictate how many transmission lines and other expensive investments are needed – even if they service the state only a few hours out of the year.
How would AB 327 impact clean energy solutions, and in particular, solar power in California?
According to the Sierra Club, flattening tiers could be equivalent to increasing the cost per installed watt of solar by $2.50 (30% of total cost), an effect that would be roughly equivalent to canceling the federal tax incentive for rooftop solar. Another analysis byNRDC shows that a monthly fixed charge combined with flattening of rates could cause a 30% increase in the amount of time it takes to recover energy efficiency investments. By levying a fixed $10 charge on all customers, the utility can now afford to drastically shift costs from their upper tiers which are the most cost effective tiers as it pertains to the savings borne by energy efficiency and solar.
Who’s for AB 327?
Who’s against AB 327?
What is the timeline and key decision points for AB 327?
The legislative session ends Sept 13th. All bills have to be passed by both chambers and put on the governor’s desk by this deadline. Senate Appropriations has until August 30th to pass bills and send them to the Senate Floor. There are likely to be at least two Senate Appropriations hearings, on August 19th and 26th, at which the bill can be heard.
What can we do to stop AB 327?