January 2014 Bill Inserts

Each month, PG&E offers important information on rebates, saving energy and safety in printed inserts that accompany your bill. Now, access this information online whenever you wish.

Summary
On November 22, 2013, Pacific Gas and Electric Company (PG&E) filed with the California Public Utilities Commission (CPUC), a request to change certain residential rates, to be effective by the summer of 2014, as described below. The request complies with a ruling from the CPUC inviting electric utilities to file proposals that will better align rates with the actual costs of providing electric service and to simplify rate plans.

About the Proposals
On October 7, 2013, Assembly Bill 327 (AB 327) was signed into law. This new law authorizes the CPUC to consider several changes to California’s electricity rate structure to better serve customers. Through this filing, PG&E is requesting approval to begin reforming its residential electric rate structure consistent with AB 327.

This proposed request will not change the amount of total revenues collected by PG&E. If adopted, some residential customers would see bill decreases or bill increases, depending upon their monthly usage levels and their rate plan. PG&E proposes:
  • To change the residential electric rate structure by reducing the number of electric pricing tiers for non-CARE standard residential and time-of-use rate plans, from its current 4 tiers to 3 tiers. These changes will better align rates with the costs of providing electric service to customers.

OIR Chart A

  • An initial step to reduce the effective California Alternate Rates for Energy (CARE) discount in order to begin a transition towards the 30-35 percent discount range required by AB 327. The proposal will reduce the average discount for customers on the CARE program from the current average discount of 48 percent to 43 percent. Under the proposed changes, CARE customers would still receive a substantial overall savings compared to rates paid by non-CARE customers.
  • To reduce the Public Purpose Program (PPP) charge, as a result of reducing the CARE discount. The CARE surcharge portion of the PPP surcharge that is paid by most residential and non-residential customers is expected to decrease by 26 percent from a per-unit charge of 0.844 cent per kWh to 0.626 cent per kWh.

How will PG&E’s proposals affect me?
Most customers receive bundled electric service from PG&E, meaning that we provide electric generation, transmission and distribution service. The table below illustrates monthly bill impacts for bundled residential customers at three usage levels, who are geographically located in baseline territory X.
OIR Chart B
Rate and bill impacts for DA/CCA customers.
Direct Access (DA) and Community Choice Aggregation (CCA) customers only receive electric transmission and distribution service from PG&E. DA/CCA customers are charged the same electric distribution and Public Purpose Program rate as bundled service customers and likewise the CARE surcharge portion of the PPP rate is expected to decrease by 26 percent.

Another category of non-bundled customers are Departing Load (DL) customers. DL customers do not receive electric generation, transmission or distribution services from PG&E. However, like DA and CCA customers, they are required to pay certain procurement-related charges, such as the Public Purpose Program rate, as bundled electric service customers.

How do I find out more about PG&E’s application?
If you have questions about PG&E’s supplemental filing, please contact PG&E at 1-800-743-5000. For TDD/TTY (speech-hearing impaired), call 1-800-652-4712.

If you would like a copy of PG&E’s supplemental filing and exhibits, please write to PG&E at the address below:

Pacific Gas and Electric Company
Summer 2014 Residential Rate Reform (R.12-06-013, Phase 2)
P.O. Box 7442 San Francisco, CA 94120

A copy of PG&E’s supplemental filing and exhibits are also available for review at the CPUC, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.–noon. PG&E’s supplemental filing (without exhibits) is available on the CPUC’s website at www.cpuc.ca.gov/puc.

How does the CPUC’s decision-making process work?
This supplemental filing will be reviewed through the CPUC formal administrative law process. The filed proposals will be assigned to a CPUC Administrative Law Judge (ALJ). The ALJ presides over the proceeding, which may include evidentiary hearings often held in a proceeding to give parties of record an opportunity to present evidence or cross-examine witnesses. Members of the public may attend but not participate in these hearings. The hearings and documents submitted in the proceeding become part of the formal record that the ALJ relies upon in writing a proposed decision to present to the five-member Commission.

Any CPUC Commissioner may issue an alternate decision. The proposed and any alternate decisions are acted upon at a CPUC voting meeting. When the CPUC acts on this supplemental filing, it may adopt all or part of PG&E’s request, modify them or deny the request.

If you would like to follow this proceeding or any other issue before the CPUC, you may utilize the CPUC’s free and confidential subscription service. Sign up at: http://subscribecpuc.cpuc.ca.gov/.

If you would like to learn how you can participate in this proceeding, or if you have comments or questions, you may access the CPUC’s Public Advisor’s website at www.cpuc.ca.gov/puc and click on “Public Advisor” from the CPUC Information menu. You can also:

Email: public.advisor@cpuc.ca.gov

Mail:
Public Advisor’s Office
505 Van Ness Avenue, Room 2103
San Francisco, CA 94102

Call:
(415) 703-2074 or 1-866-849-8390 (toll-free)
TTY (415) 703-5282 or 1-866-836-7825 (toll-free)

If you are writing or emailing the Public Advisor’s Office, please include the proceeding number (R.12-06-013, Phase 2). All comments will be circulated to the commissioners, the assigned ALJ and the CPUC staff.
Summary
On December 19, 2013, Pacific Gas and Electric Company (PG&E) filed an application with the California Public Utilities Commission (CPUC) requesting changes to its Gas Transmission and Storage rates, effective January 1, 2015. The application requests that the CPUC authorize an increase to our base revenue requirements for 2015 through 2017 to maintain and further modernize PG&E’s gas transmission system. PG&E is requesting a total base revenue requirement increase of $555 million for 2015 over the currently authorized level for 2014 of $731 million. PG&E also requests additional base revenue requirement increases for 2016 and 2017 of $61 million and $168 million, respectively.

Background
In a 1997 decision, the CPUC approved the “Gas Accord,” a market structure that separated natural gas transmission and storage rates from distribution service and rates. Under the Gas Accord, eligible customers and third-party providers can elect to use PG&E’s gas transmission and storage services only. In accordance with Decision (D.) 97-08-055, which set the Gas Accord, PG&E is presenting its updated multi-year work plan and corresponding forecast for the 2015 through 2017 period.

In this filing, PG&E also proposes how the costs to operate its transmission and storage business will be assigned to each customer class. PG&E will use the requested revenue to invest in PG&E’s gas transmission and storage assets to operate in a safe and reliable manner, and in accordance with Senate Bill 705 which governs California’s new safety standards for all pipeline operators. PG&E’s comprehensive plans include:
  • Replacing vintage pipelines that could pose risks in case of land movement.
  • Continuing to test pipelines to ensure they are operating at safe pressures.
  • Continuing to control corrosion to avoid underground leaks.
  • Installing more automated safety valves, to quickly turn gas off in case of emergency.
  • Inspecting the interior of more pipelines to spot hidden flaws.
  • Strengthening levee and water crossings.
  • Maintaining underground gas storage facilities that help us meet peak-hour demand.
  • Modernizing infrastructure control systems, databases and risk-analysis programs.

How will PG&E’s application affect me?
The requested gas revenue for 2015 would be collected from customers as described in the table below:
GTS Chart
If the application is approved, gas rates and bills will increase effective January 1, 2015. On average a residential customer using 34 therms per month would see a monthly gas bill increase of $5.23 (or 12.6 percent), from $41.53 to $46.76. A small business customer using 284 therms per month would see a gas bill increase of $42.50 (or 16 percent), from $266.15 to $308.65. Individual customers’ bills will differ.

How do I find out more about PG&E’s application?
You can view PG&E’s application and exhibits at pge.com/RegCases. Select “GTS Rate Case 2015” from the Cases dropdown menu.

If you have questions about PG&E’s application, please contact PG&E at 1-800-743-5000. For TDD/TTY (speech-hearing impaired), call 1-800-652-4712.

If you would like a copy of PG&E’s application and exhibits, please write to PG&E at the address below:
Pacific Gas and Electric Company
GTS Rate Case 2015
P.O. Box 7442
San Francisco, CA 94120

A copy of PG&E’s application and exhibits are also available for review at the CPUC, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.–noon. PG&E’s application (without exhibits) is available on the CPUC’s website at www.cpuc.ca.gov/puc.

How does the CPUC’s decision making process work?
The application will be reviewed through the CPUC’s formal process. The application will be assigned to a CPUC Administrative Law Judge (ALJ). The ALJ presides over the proceeding, which may include evidentiary hearings to give parties an opportunity to present evidence and cross-examine witnesses. Members of the public may attend but not participate in these hearings unless they are parties to the case. The hearings and documents submitted in the proceeding become part of the formal record that the ALJ relies upon in writing a proposed decision to present to the five-member Commission for its consideration.

Any CPUC Commissioner may issue an alternate decision. The proposed and any alternate decisions are voted upon by the Commissioners at a CPUC meeting. The CPUC may adopt all or part of PG&E’s request, modify it or deny the application.

If you would like to follow this proceeding or any other issue before the CPUC, you may utilize the CPUC’s free and confidential subscription service. Sign up at: http://subscribecpuc.cpuc.ca.gov/.

If you would like to learn how you can participate in this proceeding, or if you have comments or questions, you may access the CPUC’s Public Advisor’s website at www.cpuc.ca.gov/puc and click on “Public Advisor” from the CPUC Information menu. You may also:

Email:
public.advisor@cpuc.ca.gov

Mail:

Public Advisor’s Office
505 Van Ness Avenue, Room 2103
San Francisco, CA 94102

Call:
(415) 703-2074 or 1-866-849-8390 (toll-free)
TTY (415) 703-5282 or 1-866-836-7825 (toll-free)

If you are writing or emailing the Public Advisor’s Office, please include the application number (A.13-12-012). All comments will be circulated to the Commissioners, the assigned ALJ and the CPUC staff.
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