Getting mail from SDG&E is rarely fun -- more often than not it is a blood pressure-raising bill.   In this case, though, SDG&E customers with PV systems installed at their homes got a "true up period selection" received a letter offering an option to change their true-up period.   Unfortunately,  SDG&E didn't explain why someone would want to change the true-up period or describe the advantage and disadvantages of such a change.   Thanks SDG&E.

Well, that's why you came to UCAN.   We can.  Read on.

The major advantage to changing your date would be to better assist you in gauging your total usage so that you don't pay SDG&E a cent more than necessary.   You've already spent a pretty penny buying electricity from the sun, so spending more for SDG&E's services is, well, unnatural. 

Our recommendation is that if you live anywhere near the coast, you should change your true-up period to a late summer month:  August or September.    Our logic is that you can use the summer months to generate excess electricity to offset the electricity you used during the winter and May Gray/June Gloom periods.   If you ran up a large deficit, you can find ways of reducing your electric use during the summer months while the panels are pumping out maximum wattage.   

However, if you live inland and use the bulk of your electricity during the summer months, then you may want to opt for a December/January true-up month.   This way, you can use the fall and winter months to compensate for the deficit you run up during those summer months when your air conditioner is sucking up kilowatts like milkshakes at a malt shop.

Why must you go through all of this?   Well, this selection is the first part of a two-phase PV rate reform process. 

Previously, SDG&E kept any excess electricity generated by a customer and did not need to provide the customer compensation for the electricity.  Enter AB920, passed in 2009.    Under this new law,  SDG&E will have to purchase net surplus electricity from eligible customers. By January 1, 2011, the PUC will establish the rate the energy providers will purchase net surplus electricity.

The new law requires the electric utility to offer a standard contract to eligible customer that includes compensation for net surplus electricity. Available to customers on a first come, first served basis, the electric utility is obligated to offer net energy meeting only until the enrolled customers’ total rated generating capacity reaches 2.5 percent of the electric utility’s total peak customer demand. Once the 2.5 percent limit is met, the electric utility does not have to provide net energy metering for additional customers. While Assembly Bill 560 proposed a threshold increase from 2.5 percent to 5 percent, AB 560 is still in committee and has not been passed.

Currently, no specific rates have been established for over-production reimbursement. By late 2010, the PUC will set the rates for private energy providers and the local rate-making authorities will set the rates for public energy providers.   So we'll have more info available for you at that time.