Electric Rate Analysis
Debunked the myth that a single value for the increase in electric rates applies to all residential customers in California. Rate schedules became tiered (with higher cost per kWh for higher monthly usage) in the late 1990s. So, the actual increase in electric rates is strongly dependent on each customer’s usage, as well as to the time period under consideration. For example, the compound annual growth rate (GAGR) between 1970 and 2006 for a PG&E residential customer was 4.9% if they consumed 500kWh/month, and 7.3% if the consumed 2000kWh/month. Even more significant is that the CAGR between 1998 and 2006 for that PG&E customer was only 1.6% (for 500kWh/month usage) and 11.7% (for 2000kWh/month usage.)
The result was improved credibility of claim that rate will increase and therefore increased sales of NextEnergy. Increased confidence of sales force. Shared concept with other in industry thereby increasing credibility of NextEnergy and the solar industry.