PG&E gives AG Rate to cannabis growers
A big change for the cannabis industry in California as one of the state’s largest utility companies puts pot in the same category as any other crop.
Growers are now eligible for the utility company’s agricultural energy rate, saving them money.
PG&E now sees cannabis as a crop just like almonds or tomatoes.
It’s something local growers and dispensaries have been waiting on for some time.
It’s a busy afternoon at Santa Cruz Mountain Naturals. A local dispensary in Aptos.
Prior to the change, much of the money spent at the dispensary went toward their energy bill.
Now that growers can get the Agricultural Energy Rate, Colin Disheroon says both his business and customers may benefit.
“For our business, it should be able to give us more resources to grow the business and bring our prices down,” he said.
Disheroon says it’s a big improvement over the way growers got their power before.
“It’s evolved from a point where growers were stealing power, too, so they were not on PG&E’s grid at all to dodge prosecution,” Disheroon said.
PG&E says the change came about after voters approved recreational marijuana use in November.
“PG&E modified its policy to ensure that the agricultural rate is valid for all legal crops in the state of California,” said PG&E spokesperson Mayra Tostado.
The company has put certain requirements in place for ag growers to qualify.
“Customers must have a permit with local jurisdiction and 70% of their annual energy use on the meter must be for agricultural and uses such as growing crops or pumping water,” said Tostado.
Colin thinks lower rates will not only help his business but the cannabis industry as a whole.
“I definitely think this a step in the right direction. I think this is going to encourage real business practices. I think it provides incentive for people to be able to operate in the legitimate market.”
Although the Adult Use of Marijuana Act allows people to grow up to six plants in their home for personal use, PG&E says the new AG rate wouldn’t apply.
