Solar panel fiasco would make cost a deterrence

The California Public Utilities Commission is considering a change in the rates charged by utilities to homeowners and businesses that have already or plan to install rooftop solar panels.

If approved, Pacific Gas and Electric Co., as well as other state-regulated power generators, would be permitted to raise rates on those with rooftop panels from an average of $133 a month to $215. It would be an effective deterrent for those committed to inherently economic clean power generated by the sun.

Consideration of the change was recently postponed, but not abandoned. The CPUC’s explanation was the newest commissioner, Darcie Houck, needs time to review the issue. While fair, the delay coincidentally takes the heat off commissioners who are facing an unexpected groundswell of opposition to the rate hike.

The CPUC’s aim “to modernize the state’s decarbonization incentive efforts” would be be a sharp reversal in state policy.

In 2006, Gov. Arnold Schwarzenegger, one of the last of the commonsense Republicans to recognize the threat of global climate change, launched his Million Solar Roofs plan. It’s been a great success with 9% of California’s energy generated by rooftop solar panels.

The rate change is a big deal in Marin and other counties with homeowners trying to save money while decreasing their personal carbon emissions. The proposed CPUC “modernization” will penalize those who installed the panels in good faith and de-incentivize others who’d prefer to go solar if it makes economic sense.

If the PUC — whose members earn $219,000 annually and are all appointed by the governor — raise rates on solar users, history will record that Schwarzenegger’s administration did more to push a tough climate agenda than did Gov. Gavin Newsom. Change is more about real deeds than nice sounding words.

The CPUC’s excuse is that the people who erected rooftop solar panels on their homes are middle class and thus shouldn’t benefit from the current rate structure. They claim the proposed rate hike will benefit those with lower incomes as it will decrease rates by $10 a month by “establishing an Equity Fund with up to $600 million to help scale up low-income access to distributed clean energy.”

This doubletalk is pure public relations spin. It’s an argument designed to justify a course of action preferred by those special interests who have inordinate influence over commissioners and their staff.

Homeowners, including those who spent their own money installing rooftop solar, do have a greater income than some others. That greater income is why they can afford to be homeowners. If the purpose of setting electric rates is to encourage energy independence, then the ratepayers’ socio-economic status is irrelevant.

The current law is a success; why change it? It’s easy to blame recent criminal defendant PG&E.

That’s only partly fair since the unpopular utilities’ influence with Democrats in Sacramento is limited. What isn’t insubstantial is the clout of the International Brotherhood of Electrical Workers and allied unions that represent almost entirely unionized workforce at PG&E, Southern California Edison and San Diego’s Sempra Energy.

The big utility companies and their unions are joined at the hip. The power companies believe that every watt of electricity generated outside their facilities represents lost revenue. Unions understand that a prosperous employer is the key to good wages and benefits. Labor also resents that solar is invariably installed by mom and pop contractors who are rarely unionized.

What’s appalling is the hypocrisy.

PG&E touts its environmental creed. Legislative Democrats and Newsom claim they are all greener than thou. The CPUC says it’s committed to “safeguarding the environment.” Discouraging the public’s obvious preference to erect ever more rooftop solar panels on their homes and businesses makes a lie out of these claims.

Citizens interested in achieving lower power rates in an environmentally-oriented manner need to set strict performance metrics. If they do, it’ll be instructive to see which incumbents of both parties have the fortitude to stand up to Big Power and Big Labor when the chips are down.