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Sierra Pacific Power Company’s Proposal for a Net Surplus Compensation Rate July 9, 2010 Workshop.

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Presentation on theme: "Sierra Pacific Power Company’s Proposal for a Net Surplus Compensation Rate July 9, 2010 Workshop."— Presentation transcript:

1 Sierra Pacific Power Company’s Proposal for a Net Surplus Compensation Rate July 9, 2010 Workshop

2 Background on Sierra Pacific Small California service territory (approximately 46,000 customers) Unique geographic/topographic service territory (most customers are located above 6,000 feet, snowfall is prevalent) Unique electric demand (peaks in the winter) Low California NEM customer participation (20 NEM customers, only 2 with a net surplus in 2009)

3 Background on Sierra Pacific Multi-jurisdictional utility with relatively few California customers Smaller program budgets, staffing, and customer bases for recovery of program design, development, implementation and administration costs Seek to administer programs efficiently and cost effectively

4 AB 920 “In establishing the rate…the ratemaking authority shall ensure that the rate does not result in a shifting of costs between solar customer-generators and other bundled service customers.” (Pub. Util. Code Section 2827(h)(4)(B).)

5 Sierra Pacific’s Proposal Use a reasonable proxy for avoided cost, thus maintaining customer indifference and cost shifting. Ensure administrative simplicity and cost effectiveness (use an established and published rate, avoid administrative work associated with implementing a more complex rate methodology).

6 Sierra Pacific’s Proposal Net Surplus Compensation Rate is equal to the generation component for baseline quantities of Sierra’s otherwise applicable retail rate. Generation Component = $ per kWh

7 Questions Please direct any questions to: Jed Gibson Ellison, Schneider & Harris L.L.P Capitol Ave, Suite 400 Sacramento, CA (916)


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