Real-Time Pricing (RTP) Pilot Rate

The Real-Time Pricing (RTP) pilot rate was proposed to the California Public Utilities Commission (CPUC) to directly pass onto customers the wholesale price of the generation cost of electricity (i.e., “commodity cost”).

This proposed pilot rate is intended to provide customers with price signals to manage their usage dynamically and reduce their electric bills while also supporting California’s climate action goals to use the grid more effectively and reduce greenhouse gases.

SDCP is seeking feedback from our eligible customers to determine interest in participating in this pilot so that we may offer an equivalent rate. Below is an overview of the proposed pilot rate. If you are likely to participate in this pilot rate, please indicate your interest below.

What is the RTP pilot rate?

As proposed by SDG&E, the RTP Pilot rate is designed to give eligible customers a choice to receive hourly price signals a day ahead to encourage changes in their load patterns to contribute to California’s (CA’s) clean energy goals and reduce utility operating costs to help keep rates affordable.

The proposed new RTP Pilot rate is designed to directly pass onto customers, as their commodity cost, the wholesale price of electricity.

The goal of the proposed RTP pilot rate is to test whether sending dynamic, real-time pricing rate can provide customer choice. The pilot would more accurately send price signals to customers than flat or TOU rates by linking the real-time cost of energy to actual consumption.

For detailed information on the RTP pilot, please visit SDG&E’s Application for Approval of a Real-Time Pricing Pilot Rate.

How would the Real-Time Pricing pilot rate work?

As proposed by SDG&E, hourly prices for the pilot would be posted online by 6:00 PM (18:00) the day before they go into effect.

Participating customers will self-serve and pull pricing from SDG&E’s webpage and have the necessary visibility and information into prices (high or low) on an hourly basis a day in advance in order to estimate their cost of electricity for the next day and adjust their operations to reduce costs.

What are the benefits of the RTP pilot rate?

The benefits of the pilot rate include:

  • Reduction in grid costs and greenhouse gases by reducing customer use during evening peaks
  • Increase in load flexibility by enabling integration of higher levels of renewable energy
  • Reduction of rolling blackouts
  • Increase in electricity usage during times where there is a surplus of renewable energy on the grid

Who would be eligible for the RTP rate?

The RTP Stage 1 pilot rate would be limited to 100 Medium/Large Commercial and Industrial customers on the following rate schedules with at least one year of hourly usage data available and will commence on 11/1/2022:

  • AL-TOU
  • AL-TOU-2
  • A6-TOU

Customers enrolled in any of the following current programs would not be eligible to participate in the RTP pilot unless they unenroll from the program to partake in the Pilot:

  • Net Energy Metering (NEM)
  • Legacy rates (customers on Legacy, or “grandfathered”, rates will forfeit their Legacy rate by enrolling in the RTP pilot; participating customers would revert to the existing rate structures)
  • Any SDCP-offered Demand Response (DR) program, including the Critical Peak Pricing program
  • Conjunctive billing

Are you interested in SDCP offering an equivalent RTP pilot rate?

SDCP wants to know from our eligible customers whether they’d be interested in the Real-Time Pricing pilot rate and if they would like to see SDCP offer an equivalent rate.

If you are interested in learning more, please sign up below and we’ll be in touch with you soon!