PG&E recognizes cannabis as ‘legal crop’
As of Tuesday, March 1, PG&E customers currently growing medical cannabis can apply for reduced electrical rates and cost savings.
“Cannabis is a legal crop in our state, like almonds and tomatoes. Agricultural growers now will be eligible for the same rate and energy efficiency programs as farmers of other crops,” said Deborah Affonsa, vice president of Customer Service at PG&E.
PG&E customers are eligible for agricultural energy rates if they have received a permit from their local jurisdiction for the cultivation of cannabis and if 70 percent or more of the annual energy use on the meter is for agricultural end-uses such as growing crops, pumping water for agricultural irrigation or other uses that involve agricultural production for sale which do not change the form of the product. The agricultural energy rate applies both to customers who grow cannabis outdoors and those who grow indoors in commercial greenhouses.
PG&E’s agricultural energy rate varies between peak hours and seasons. Summer rates are $.195 per kilowatt-hour from 6 p.m. to noon and $.445 per kilowatt-hour from noon to 6 p.m. During the winter, agricultural rates are $.164 per kilowatt-hour from 9:30 p.m. to 8:30 a.m. and $.202 kilowatt-hour from 8:30 a.m. to 9:30 p.m.
While recreational cannabis cannot be sold in California until January 2018, existing medical cannabis growers and future recreational cannabis growers are eligible for the program. The passage of Proposition 64 in November 2016 allows the state to license and regulate recreational cannabis cultivation and businesses.
Sonoma County has not yet begun to issue permits for medical or recreational cannabis businesses. Permitting is slated to begin in June, should Measure A pass on Tuesday, March 7. Measure A would set tax rates for cultivators and businesses within unincorporated Sonoma County. The revenue generated by the taxes would funnel into the county’s general fund. The Board of Supervisors maintains the funds will be used for code and law enforcement, inspections and compliance monitoring associated with the new industry. If the measure fails to pass, the county will not begin to issue permits.
PG&E’s agricultural energy rate does not apply to residential customers who can legally grow up to six cannabis plants inside a private residence as allowed under Prop. 64.
Previously, medical cannabis was not considered an agricultural product by PG&E, and cultiavtors were not eligible for the agricultural energy rate. Because medical cannabis can be grown and sold in California currently, licensed growers of medical cannabis are immediately eligible for the agriculture energy rate.
Cannabis growing operations can use an extremely large amount of electricity and are considered to be equivalent to other energy-intensive operations such as data centers.
“We’ve met with representatives of the emerging legal cannabis industry and listened to their needs. We are here to help our customers make smart, efficient and affordable energy choices,” Affonsa said. “Now that cannabis is in California’s future, our next step is to work with these new agricultural customers and make this industry as energy efficient as possible.”
PG&E’s agricultural rates are under the jurisdiction of the California Public Utilities Commission and the state of California.
Agricultural customers with questions about rates, rules and energy efficiency programs can learn more at pge.com/ag or contact PG&E’s dedicated Agricultural Customer Service Center at 1-877-311-3276.
