Marin-based energy aggregator decries state-approved fee hike

An MCE official calls the California Public Utilities Commission’s decision last week to require customers to pay more in exit fees to investor-owned Pacific Gas & Electric Co. a flawed approach that unfairly shifts costs to customers.

But CEO Dawn Weisz said it won’t deter the community-choice aggregator from its core mission of “providing cleaner power at stable rates, reducing greenhouse gas emissions, and investing in local programs.”

Formerly known as Marin Clean Energy, MCE has seen sharper increases in the exit fee in past years, Weisz said. In January 2016, the PUC approved nearly a doubling of the fee.

“We’ve always maintained competitive rates with a lot of stability,” Weisz said, “and we’ll continue to do that.”

Supervisor Damon Connolly, who formerly served as chairman of MCE’s board, wrote in an email, “At a time when we are seeking to incentivize people to sign up for clean energy sources like MCE Clean Energy to meet Marin and California’s ambitious climate goals, this decision goes in the opposite direction by making it harder to do so.”

Richmond Mayor Tom Butt, an MCE board member, said, “All the community-choice aggregators are trying to do the right thing. They are on the front line addressing climate change and to get whacked down by a public agency, particularly in California, is really disappointing.

“The CPUC is basically a surrogate of the investor-owned utilities,” Butt said. “They have huge power over the CPUC commissioners, and I don’t know why. These people all get appointed by the governor, and the governor is supposed to be friendly to people who are trying to do something about climate change.”

When a PG&E customer switches to MCE or another community choice supplier, PG&E is permitted to charge that customer an exit fee to compensate it for the power contracts it previously entered into to supply that customer electricity. The fee was imposed by the California Public Utilities Commission to ensure that customers remaining with the utilities do not end up footing the entire cost of the contracts.

Weisz, however, says that PG&E shareholders should bear more of the cost for the utility’s poor decisions in building power plants and purchasing power. For example, Weisz said that in the early 2000s PG&E built a number of natural-gas-fired power plants that now might not be needed.

 

Marin-based energy aggregator decries state-approved fee hike, by Richard Halstead, Marin Independent Journal, October 15, 2018.

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