This is exactly the perverse pricing problem that Tesla (or someone else) can easily solve with aggregation+Autobidder.

Tesla knows your utility rate, including the absence or presence of time-of-use billing. They also have access to the real-time market behind the meter. In this position, they can always Do The Right Thing to minimize total cost of EV charging (electric bill minus earned Autobidder revenue).

In your case the Right Thing sounds like choosing the tiered PG&E rate, and letting Tesla aggregation pay you for load shifting.

I have no interest in letting Tesla, or anybody else, capture that value. Nor do I have any interest in propping up a failing grid at my own expense. I've been DIYing-at comically low cost-my way towards an off-grid electrified home. And I've driven up my energy consumption and quality of life dramatically while also reducing my costs and environmental footprint.

Looking at my data so far, it's cheaper for me to have a tiny gasoline generator to fill in under the quite-rare shortfalls (e.g., the two continuously rainy weeks in December where I don't quite charge up my batteries during the day, and I need to run heating overnight) than it is to pay the minimum grid connection charge.

I expect that as our local grid costs continue to skyrocket at about 4x CPI, and with distributed generation costs coming down, that many more folks will do the same.

It's fascinating how the economics play out. Thanks to this deal, it no longer makes sense for us to go solar or to have a house battery. So the power company has us as a loyal customer (at least, while they keep offering this deal).