NO MORE utility tiers from power companies!

Since residential rates are “tiered”-meaning the cost per kilowatt-hour (kwh) increases as you use more energy – your cost to run your household items depends on the overall amount of electricity you use.

The basic charge for residential customers covers some non-energy costs associated with providing basic services such as bill preparation, meters, meter reading, and customer accounting. This charge ensures that each residential customer, regardless of monthly usage, contributes equitably to cover costs associated with providing basic electric services.

Standard Residential Rate

The Residential Plan is the basic rate for residential customers and features a 4-tiered structure. Tier 1, or your baseline allocation*, is the established amount of energy (kWh) you need for lighting, cooking, heating, and refrigeration. This baseline is established by the California Public Utilities Commission (CPUC) and is based on where you live, the season (winter or summer), and whether your home is “all-electric” or uses both electricity and gas.

*Baseline electricity allowances are an established level of kilowatt-hours (kWh) provided to residential customers. Pursuant to State law, baseline allowances represent the electricity necessary to supply a significant portion (50-60%) of the reasonable needs of the average residential customer.

Additional Charges

Every residential bill includes some non-energy costs for providing basic services like bill preparation, meter reading and customer accounting. This charge ensures that every SCE customer contributes equitably to pay for these services.

Each residence is also charged for other CPUC-approved services like power generation, transmission or distribution. This charge is based on the number of kWh used and may change monthly, based on power generation and water resources factors.

Understanding Tier 1 (Baseline)

The “baseline allocation” is an established amount of energy (kWh) allocated for basic services such as lighting, cooking, heating, and refrigeration usage. Residential customers’ baseline allocation is established by the California Public Utilities Commission (CPUC) to ensure that all customers can purchase a basic supply of energy at the lowest rate in effect. Your specific allocation depends upon your baseline region, the season (winter or summer), and whether your home’s source of energy is electricity only or a combination of electricity and gas.

Four-Tier Price Structure Sample*

Tier Tier1 Tier2 Tier3 Tier4
Cents per kWh 13¢ 16¢ 27¢ 31¢

This example is a rate chart from Southern California Edison (SCE). Tier pricing for other utility companies, like San Diego Gas & Electric, may be different.

How does Tier pricing relate to the installation of Photovoltaic Solar panels? NO MORE TIERS…

Putting your unused roof space to work generating power for your electricity need can be the platform to engineer a system to provide 100% of the power necessary for your electricity consumption or a Solar system can be engineered to provide less than 100% of your need. This concept of analyzing the consumption of power that you pay for related to the Tier pricing schedule allows us, Cira Energy, to engineer a Solar system to give you total control over your current and future energy cost or some control over your current and future energy cost.

Should you choose to have Cira Energy engineer and install a Solar PV system for a portion of your energy need, then you will be “Tier Shaving”. Tier shaving allows for Solar to provide enough power so you will not be exposed to the higher tier pricing. Cira Energy can analyze your past consumption of Kilowatt-hours used over a period of time and then recommend a solar system size that will allow for you to still receive a bill from your utility, but the new bill would be for energy usage in only Tier 1 or Tier 2 (your choice)….which the cost of Tier 1 is only .13 cents per kilowatt-hour (very cheap).

The idea behind the “NO MORE TIERS” program that Cira Energy has developed, is to give a homeowner the flexibility to choose the right amount of PV Solar for their energy need. At the very least, a homeowner can lease a Solar system (the cost is nothing – no monies out of pocket) and the cost of leasing a Solar system will be less than the cost of buying power at the high Tier rates. OR, a homeowner can purchase a Solar PV system and Cira Energy can guarantee that your future cost of power will likely be at today’s Tier 1 rates….that is Tier 1 rates for years and years to come! The “NO MORE TIERS” program will allow for complete control over pricing now and in the future.

NO MORE TIERS means that you, the homeowner, will not have to shed a tear when you open that future energy bill and get shocked at the cost of your energy. Your savings by making a simple decision to allow us to power your home with PV Solar will be guaranteed. Most homeowners will experience total savings over 20 years from $20,000 to $80,000! Your Tears can turn into a SMILE with the extra money! Put your unused roof to work.

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