On E-6 TOU in the third tier, during peak hours in summer, rates can easily reach $0.50 per KWH. If you have Smart Rate, they reach $0.60 per KWH during the designated hours.
The only scenario I can think of when $0.035 per KWH is a reasonable price for electricity is when that electricity is produced at 7am on a Sunday. Otherwise, it's really an undervaluation for the electricity. Remember, PGE has agreements in place for solar PV generation where for every KWH produced, regardless of time of day, you get $0.20 per KWH. Should have signed up for the generator credit instead of the NEM credit as I'm a net producer.
Their is a reason their is no more E-6 Plan, because it didn't represent true peak time. Also the 50 cents includes their profit, and they need a lot of profit. The whole sale compensation is calculated based on the weighted average wholesale cost to PG&E from 7am to 5pm, which are also the hours over 90% of solar is produced.
Also PG&E did those things because it needed to reach 20% renewable requirement under Now that it is close to meeting its 20% obligation, it doesn't need any more of those agreements.