A big decision on rooftop solar in California is off the table, for now

Speaker 1: (00:00)

California regulators are holding off on considering a proposal that would upend the state's solar marketplace, K P S environment reporter. Eric Anderson says the delay likely means changes to the controversial plans that are in the

Speaker 2: (00:15)

Works. The California public utilities commission delivered grim news for the state's solar dollars last month.

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It's it's so bad.

Speaker 2: (00:23)

Bernadette Del KIRO is the executive director of the California solar in storage association. We think

Speaker 3: (00:29)

The proposed decision, the bones of it are so rotten, uh, that it will not hold

Speaker 2: (00:34)

The public agency recommended slashing how much homeowners are paid for electricity generated by the rooftop solar panels. And it proposed a steep increase in grid access charges for a typical solar customer about $60 a month. The plan essentially negates the financial incentives for homeowners to pay thousands of dollars to add solar panels to their roofs. Solar industry advocates say that changes could dry up man for the green energy option and throw thousands of solar installers out of work. And that got solar workers to a rally in Los Angeles. Last week, The message was aimed at the C PUCs satellite office in LA, the solar workers like revamp energy's owner. Jay cut says his brown and black workers need the support of commissioners.

Speaker 4: (01:26)

And we would hate to see all the hard work and, and progress we've made, been killed by this, by this bill and this solar tax. So we came to show our support and say, save our jobs.

Speaker 2: (01:39)

But the commission isn't the only target solar industry backers have worked hard to get the attention of governor Gavin Newsom and hence that their campaign is working came when Newsom answered questions about the proposal during the unveiling of his proposed budget. Earlier this month, that draft

Speaker 5: (01:56)

Plan that was recently released, I just had a chance to review. And I'll say this about the plan. We still have some work to do

Speaker 2: (02:03)

Wanna ask again. Later during the event, Newsom was vague, but did suggest the proposal would not survive in its current form.

Speaker 5: (02:10)

Do I think, uh, that changes need to be made? Yes,

Speaker 2: (02:13)

I do. A recent development suggests change might be coming. The CPU C failed to put the item on its January 27th agenda after planning a vote for more than a year. It is unclear if the issue is just being pushed back a couple of weeks or longer,

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There's no question. The commission needs more time on

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This solar industry. Backer Bernadette Del Kiara is not ready to call the delay of victory, especially with the commission in flu. The CPU C president has only been in office since the beginning of the year. And another of the panel's five seats remain unfilled.

Speaker 3: (02:47)

It is unprecedented. The shake up of the, the leadership of this commission, right at the five yard line of one of the biggest decisions they will have made this decade. So there's no question they need more time. And I think the governor

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Recognized that and

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Referenced that as well, San Diego gas and electric has remained quiet on the issue. Since early last year, the utility called the process sensitive and told KPBS they would not be commenting until after regulators make their decision. But utility back groups continue to run ads on social media

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Flaw and state law is forcing Californians who can't afford rooftop, solar to subsidize wealthier homeowners who can seniors and

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Families struggle. And they have surrogates making their case. Kathy Fairbank runs the utility funded group, affordable energy for all it's

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Unfair. And you know, we understand why the solar industry street is objecting to these reforms. It means cuts to their profits. It means cuts to executive salaries and bonuses. It means cuts in their shareholders.

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Meanwhile, solar industry backers say it is utilities that are motivated by greed. Regulators will make the final decision change. The solar market once before making only minor tweaks after a more sweeping utility friendly proposal was rejected. It remains unclear if that will happen again,

Speaker 1: (04:11)

Joining me as KPBS environment reporter Eric Anderson, Eric. Welcome.

Speaker 2: (04:16)

Thank you, Maureen.

Speaker 1: (04:18)

Can you remind us why the N energy companies like SDG and E say the current fee structure for rooftop solar needs to be changed?

Speaker 2: (04:27)

Well, I think the utilities are starting to feel the pressure of an expanding, uh, solar footprint in the state of California. More than 1.3 million homes now have rooftop solar, and that's reduced the revenue that they make. Uh, a big chunk of the revenue that utilities make comes from the electricity that they sell to customers. And if those customers are gen generating that electricity on their own rooftops, uh, then, uh, the utilities are not selling them, uh, the electricity. And what they're saying in a nutshell is that they still have all these fixed car costs that they have to deal with maintaining the power lines that get the power to individual homes, both in communities and some of those high, uh, high tension power lines that go to energy projects in, in far flung places. And those costs are fixed. And they feel like if you're getting out of, uh, buying electricity, if you're not buying as a much electricity, uh, then, uh, other people who are buying the electricity are paying more for those fixed costs. So they say they want to fix that imbalance

Speaker 1: (05:33)

And do solar energy advocates agree that some changes need to be made?

Speaker 2: (05:39)

Well, I'm not sure that they agree. I think, uh, the solar industry is very comfortable with the net energy metering. It's called NM 2.0 a system that's in place. And they'd like to have something. I think if you ask them, uh, very similar to that, they're obviously open to, to accepting some tweaks to the current system. Uh, but what they like about it, uh, the current system is that the grid connection fee is only about $12 a month. And, uh, uh, the price for energy generated, uh, on rooftop solar, uh, the price of the utility has to pay the customer, generating that electric. There's only a few pennies below the retail price of electricity that those consumers would then have to buy, uh, pay when they buy electricity from the utility.

Speaker 1: (06:27)

And how does the shake up on the state board? The fact as you say that the chair has only been there several weeks, how does that impact the future? The proposal?

Speaker 2: (06:36)

Yeah, that really a, a kind of an interesting, additional complication to this, uh, to this whole issue. You know, if the CPU C had a full board and all the members who were members at the beginning of December last year were still seated, they would have the five members they could have probably gone ahead, uh, and voted on this proposal, which was released on December 13th, but this new proposal, uh, which has these high grid connection fees that get paid every month, regardless of whether or not, uh, that customer uses any electricity from the utility, uh, that have these, uh, that really slash the value of solar generator and rooftop those proposals. Uh, now it's kind of in flux because as, as you said, the president of the PUC unexpectedly retired in December and there was a new person, uh, Alice Reynolds seated in January. She's only been on the job for a couple of weeks. This is not an easy, uh, cut and dry decision. It's very complicated. The proposed rule changes we're talking about here, you know, are more than a hundred pages of documents. Um, very detailed. It's not something that you can just read in a, in an afternoon and, and feel like you're comfortable with it. So, uh, she needs to get up to speed. There's another vacancy on the panel as well, which complicates things

Speaker 1: (07:55)

You say governor Newsom has indicated that he is not a total fan, the new solar fee structure proposed by the CPU. C does the governor have any official capacity to veto the changes?

Speaker 2: (08:07)

The governor doesn't do anything directly related to this, but he appoints all the members of the public utilities commission. And he's the one who appointed Alice Reynolds, who is the new board president. Uh, does the go governor have a role to play in this? I think he does. Uh, but it's not the kind of public hands on role, uh, that some people might want him to have. Um, uh, he, he can influence the commission. And I think what he said when he unveiled his budget earlier this month was that, look, he's looked at it. Um, he's not comfortable with the proposal. It was released in December. He said it needs work, but he didn't say very much more than that. Um, he kind of is keeping the, the cards close to his vest on, on exactly what he wants exactly what is going on. He also hinted that they were discussions about this issue that were ongoing. So that's something that, uh, is being, uh, processed right now, kind of out of the public's view.

Speaker 1: (09:06)

Okay. Then I've been speaking with KPBS environment reporter Eric Anderson, Eric. Thank you. My pleasure.