Dec 162021
 

Exactly what Kirk Uhler predicted would happen, has happened. The staff obsession with “Reserves” and the refusal of the board of Pioneer Energy to challenge what Staff is telling them has caused Pioneer Energy to NOT be what they were presented to be when founded.

In fact, your intrepid blogger was told that the charter of Pioneer Energy was recently changed to “Provide Rates Competitive with PG&E” versus “Provide Rates Cheaper than PG&E”. Competitive means close, and most likely higher than PG&E. This is the case now.

When you read the presentation, one thing will stick out: The executive director and staff of Pioneer Energy are obsessed with building cash reserves fast and have successfully gotten higher rates under the guise of financial stability or something like that.

Even now – the Staff presented the board with only three options: Rates Same as PG&E, 3% less and 6% Less. Given that PG&E has almost the highest electricity rates in America, this renders Pioneer Energy to be a fraud. (Remember there is a surcharge that PG&E is allowed to put on Power aggregators that adds to the bill, effectively making “rate parity” a higher rate than PG&E)

The presentation clearly says that PG&E is taking a massive rate increase. The solution is for Pioneer Energy to take advantage of it to continue to overcharge customers to build reserves.

• Projections assume current Pioneer generation rates through 2024
• Under current conditions, revenues would need to increase for 2022 and beyond in order to cover projected operating expenses
• Do Nothing with rates is not an option

The bullets are straight out of the Staff Report to Pioneer Energy.

Conservative Mugs 970×250

Then – this is how Staff Couched the Proposed 2022 Rates apparently in order to manipulate the board in to doing what they want:

• Rates set to parity for the 2021 vintaged customers; lower PCIA levels result in an average estimated discount of 12% for the 2017 vintaged customers
• Estimated $46mm reserve contribution (104 days COH) • Each percentage point decrease in Pioneer’s rates, results in a ≈$2.1mm (5 days COH) revenue decrease

Translation – New Customers still pay higher rates than PG&E because of the surcharge that PG&E is allowed to put on power aggregators like Pioneer Energy.

Then also see how they threaten the board by saying every % you lower rates means something really bad. Not noted in this presentation is that Pioneer Energy has a lot of cash in the bank already and the dissident board members are pointing out that Pioneer does not need to be so aggressive with their rates.

Please note that Jim Holmes is the chair of the board and Loomis Town Councilmember Jeff Duncan (a democrat) are the rate-hike cheerleaders. Similar to the WPWMA, there seems to be a disease in Placer County Local Government where few if any people on boards or commissions question the recommendations of staff.

When that happens, the taxpayers suffer.

P.S. Nowhere in these discussions have I ever seen an honest appraisal about how large the savings to customers could be. The suggested rates have always been tied to PG&E’s rates and then the budget reverse engineered to fit. Most businesses charge based on their own costs and set prices based on those. Welcome to Government, again.

Stay Informed!

Sign up to receive RightOnDaily updates sent to your inbox.

  2 Responses to “Pioneer Energy Update: Why The Rates are Higher Than PG&E Right Now and Why No Relief is Coming”

  1. I smelled a ‘rat’ when Pioneer Green Energy showed up here in Yolo County…you had to manually opt-out to not be transferred from PG&E to the new socialist energy program. I told everyone I knew, it’s nonsense, and it reminded me of the former Ed Smeloff crap at SMUD…and to opt out and stick with PG&E.

  2. You will be billed for pge and pioneer for same thing.

 Leave a Reply

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

(required)

(required)