PG&E Electric Rates To Drop 1.1 Percent On January 1
Release Date: December 27, 2007
Contact: PG&E External Communications (415) 973-5930
SAN FRANCISCOPacific Gas and Electric Company today notified the California Public Utilities Commission (CPUC) that average bundled electric rates will drop by 1.1 percent on January 1, 2008 as a result of an expected revenue decrease of approximately $105 million. Earlier in the year, PG&E was forecasting 2008 revenue increases of more than $350 million, as noted in a filing submitted with the CPUC on August 31. However, since that time, the forward market prices for natural gas and electricity have dropped considerably. Natural gas, which is the fuel for about a third of the state's power generation, is a significant factor in establishing market prices for electricity.
"Pacific Gas and Electric Company has a razor sharp focus on managing its energy procurement costs to help keep rates down for customers," said Tom Bottorff, PG&E's senior vice president of regulatory relations. "Smart energy purchasing strategies and an improving electric market have allowed us to pass on savings to the 15 million Californians that rely on Pacific Gas and Electric Company for their energy needs."
PG&E's residential customers can expect a rate decrease of about 0.8 percent. While all income-qualified CARE (California Alternate Rates for Energy) customers remain protected from any rate changes, the inclusion of costs associated with implementing the California Solar Initiative causes a slight increase to Tiers 1 and 2 for all non-CARE residential customers. As a result, the average electric residential customer that uses 560 kWh per month and currently pays $74.18 per month will see an increase of $0.32, bringing the average bill to $74.50 per month.
A residential customer that uses an average of 850 kWh per month currently pays $149.03 per month. In January, that customer's average monthly electric bill will decrease by $1.54 to $147.49.
Expected Average Rates for January 1, 2008
|Customer Class||Average Current Electric Rates||Average projected rates 1/08||Percent change (Current to 1/08)|
|Medium Business||14.36||13.84||– 3.6%|
|Average Bundled Rate||13.88||13.72||– 1.1%|
Chart of the Expected Average Monthly Electric Bill for Residential Customers in Territory X
|Monthly Residential Customer Usage||Average Current Monthly Bill||Average Monthly Bill - 1/08||Average bill change (Current to 1/08)||Percent change (Current to 1/08)|
|850 kWh||$149.03||$147.49||– $1.54||– 1.0%|
|1000 kWh||$196.29||$193.25||– $3.04||– 1.5%|
|1500 kWh||$371.58||$362.47||– $9.11||– 2.5%|
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