Small Cities Climate Action Partnership Case Study:
The Importance of Regular Rate Optimization
The Challenge: Non-optimized Rate Schedules
The amount a utility customer pays at the end of each month is
calculated based on their rate schedule and energy-use pattern.
Utility companies usually offer customers a variety of rate options
from which to choose. The challenge for ensuring optimal rates for
customers is due to seasonality and operational changes, which
can lead to fluctuations in customer energy usage over time. As a
result, customers can be charged a higher rate than necessary.
An additional challenge is that small cities often have limited time
and resources to dedicate to energy management and conducting
rate analyses for their facilities. In some cases, these analyses are
often put off for several years. However, there is an opportunity for
municipalities to save money on their utility bills from conducting a
rate analysis on a regular basis (at least once a year).
The Approach: Rate Analysis
As part of the Small Cities Climate Action Partnership (ScCAP)
program, the ScCAP energy support team reviewed utility bills of
the partner cities to determine whether there was a unit cost of
electricity rate that was better suited to customers’ typical energy
use patterns at select municipal sites. The analysis was conducted
using PG&E’s Business Tools.1 This analysis led to optimization
studies that were later presented to partner cities so they could
review historical and current usage to determine the results
yielding the greatest savings.
Next Steps and Results
The ScCAP support team made recommendations for 14 different
sites, with the promise of yielding an estimated annual savings of
around $50,000. In the City of Benicia, the City’s Climate Action
Plan (CAP) Coordinator contacted their utility account
representative to change the rates at six facilities. The $3,000
annual savings could then be used for additional energy efficiency
projects identified by city staff.
Benicia’s CAP Coordinator and Finance and Building Maintenance
Services Departments found the rate optimization analysis and the
recommendations valuable. They indicated that this analysis was
a great example of how a quick analysis of energy use can go a
long way toward saving a cash-strapped city money.
Conducting a simple rate analyses provides a valuable opportunity
to help cities save money on their utility bills. Utility companies
often provide easy-to-use tools or do rate analyses for no cost.
Simple energy management tasks should be performed on a
regular basis to account for operational changes that affect overall
1
Climate Protection Actions in Small
Cities
Over two-thirds of U.S. citizens reside in
jurisdictions with populations under 100,000.
Unfortunately, these communities often lack
the staffing resources and economies of
scale necessary to plan for climate
protection, access project funds, and
accelerate energy efficiency efforts.
As the State aims to achieve a significant
reduction in GHG emissions in the coming
years, small local governments are facing
similar challenges related to energy and
climate action planning. Increasingly, small
communities are realizing the benefits of
collaboration. Acting together at a regional
level, small local governments are
leveraging resources, sharing best practices,
and developing a collective voice in order to
address California’s climate policy.
Realizing the benefits of collaboration, with
support from Strategic Energy Innovations, a
non-profit sustainability organization, seven
small California Bay Area local governments
– the Cities of Albany, Benicia, El Cerrito,
Moraga, Orinda, Piedmont, and San Pablo –
have come together to form the ScCAP to
address
climate
change
in
their
communities. The funding for ScCAP has
been provided by the U.S. Department of
Environmental Protection Agency and
Pacific Gas and Electric Company (PG&E).
Not only has this partnership empowered
small local governments to implement
climate protection measures that they would
not have pursued on their own, it has also
made it possible for small local governments
to become leaders in addressing climate
change.
To conduct a rate analysis, local governments can also contact and request it from their PG&E representatives.
This program is funded by California utility customers and administered by PG&E under the auspices of the California Public Utilities Commission.
Small Cities Climate Action Partnership Case Study:
The Importance of Regular Rate Optimization
energy consumption. The savings that result from this no- or low-cost, high-yield activity can help convince cities
that energy management pays off.
”Conducting a rate analysis is one of the easiest and most beneficial energy
management techniques. This analysis creates an awareness of site energy use and
results in annual savings for the City that can be used for a variety of future energy
related projects and upgrades. The City plans to conduct an analysis on a quarterly
basis to identify additional savings.”
- Alex Porteshawver, Climate Action Plan Coordinator at City of Benicia
Table 1: Business Tools Rate Analysis of an electric account at a ScCAP City Partner’s Senior Citizen Center
Electricity Cost for Corresponding Available Rate Schedule Options
Month
Rate A1 (Recommended
rate for facility)
Rate A6 (City’s
current rate)
Savings
1
$182.62
$184.73
$2.11
2
$174.57
$176.74
$2.17
3
$194.75
$198.66
$3.91
4
$223.20
$226.42
$3.22
5
$314.48
$418.79
$104.31
6
$471.31
$670.98
$199.67
7
$538.51
$750.26
$211.75
8
$423.05
$599.39
$176.34
9
$450.09
$635.27
$185.18
10
$298.89
$401.04
$102.15
11
$211.63
$222.39
$10.76
12
$179.68
$181.36
$1.68
$3,662.78
$4,666.03
$1,003.25
Total
PG&E’s Business Tools was utilized to conduct online rate analysis for all ScCAP cities. The results from one such
rate analysis is presented in Table 1 above, which indicates that a small Bay Area city could potentially save around
$1,000 on average each year if the Senior Citizen’s Center’s rate schedule is changed from the A1 to the A6
schedule2. Cities can also conduct a rate analysis by contacting and requesting it from their PG&E account
representative. They will be able to provide a rate analysis and assist the City in choosing the best rate for each site.
For additional information about ScCAP, please contact Eun-Soo Lim at Strategic Energy Innovations,
eun-soo@seiinc.org / 415.507.1430.
2
www.pge.com/tariffs/tm2/pdf/ELEC_SCHEDS_A-6.pdf / www.pge.com/tariffs/tm2/pdf/ELEC_SCHEDS_A-1.pdf
This program is funded by California utility customers and administered by PG&E under the auspices of the California Public Utilities Commission.