June 2013 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.

On April 18, 2013, Pacific Gas and Electric Company (PG&E) filed the application in the second phase of our 2014 General Rate Case (GRC Phase II) with the California Public Utilities Commission (CPUC). In this application, we are requesting approval from the CPUC to allocate our approved revenue—that is, the amount that the CPUC has authorized for PG&E to collect in rates to operate our utility business—across different customer classes and to design electric rates for these classes. We are proposing this in order to better align our rates with the costs of providing electric service to our customers, and to simplify rates to make them easier to understand.

Will Rates Increase as a Result of this Application?
Approval of this application will decrease rates for some customers and increase rates for others. Our GRC Phase II application does not propose any increases in annual revenues, but rather seeks to distribute our approved revenue across different customer groups. The actual rate increases or decreases will depend on the CPUC’s final decision in this application, and will go into effect as early as mid-2014.

Rate and Bill Impacts for Bundled Customers
Most of our customers are bundled customers meaning that we provide electricity (generation), transmission and distribution service. The table below shows the proposed allocation of revenue (the total dollars collected through rates from our customers) and the percentage change, by customer group.

GRC ChartA

The table below shows the projected impact on monthly bills for bundled customers on the standard residential rate (E-1) who live in the climate zone labeled as Baseline Territory X. The projected impact for customers taking service on the California Alternate Rates for Energy (CARE) Program is also listed below.

GRC ChartB

Rate and Bill Impacts for DA/CCA Customers

Direct Access (DA) and Community Choice Aggregation (CCA) customers receive only transmission and distribution service from PG&E but purchase electricity (generation) from other suppliers. We charge DA/CCA customers the same distribution and Public Purpose Program (PPP) rates as we do bundled customers. The projected electric rate changes for DA/CCA customers by customer group are illustrated in the table below.

GRC ChartC

Departing Load (DL) customers do not receive generation, transmission or distribution from PG&E but will be affected by our application because they are required to pay the PPP rate. We charge DL customers the same PPP rate as we do bundled and DA/CCA customers. Total DL revenue will be reduced because of a reduction in PPP rates by about $2.6 million or 6.1 percent.

FOR FURTHER INFORMATION

If you have questions regarding the GRC Phase II application or for more details, 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 the application and exhibits, please write to PG&E at the address below:
Pacific Gas and Electric Company
2014 General Rate Case Phase II Application
P.O. Box 7442
San Francisco, CA 94120

You can also view PG&E’s GRC Phase II application and exhibits online at www.pge.com/RegCases. Select “GRC 2014 Ph II” from the Cases drop-down menu.

A copy of PG&E’s 2014 GRC Phase II application and exhibits is also available for review at the CPUC, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.–noon. A copy of the application (without exhibits) is available on the CPUC’s website at www.cpuc.ca.gov/puc.

THE CPUC PROCESS

The CPUC’s Division of Ratepayer Advocates (DRA) will review this application. The DRA is an independent arm of the CPUC, created by the Legislature, to represent the interests of utility customers throughout the state and obtain the lowest possible rate for service consistent with safe and reliable service levels. DRA has a multi-disciplinary staff with expertise in economics, finance, accounting, engineering and rate design. The DRA’s views do not necessarily reflect those of the CPUC. Other parties of record, such as those representing various customer groups, will also participate.

Evidentiary Hearings

The CPUC will schedule Evidentiary Hearings (EHs) for the GRC Phase II, where parties of record present their proposals in testimony and are subject to cross-examination before the Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are formal parties of record can present evidence or cross-examine witnesses during EHs. Members of the public may attend, but are not allowed to participate in the hearings, Public Participation hearings are already being held in Phase I of PG&E’s GRC (A.12-11-009). Notification of those public participation hearings was already sent to you either by a separate mailing or included as a bill insert in your monthly bill. Customers may also submit written comments to the CPUC at the address listed on the back. All such correspondence to the CPUC should reference PG&E’s 2014 GRC Phase II Application (A.13-04-012).

After considering all proposals and evidence presented during the hearing process, the ALJ will issue a draft decision. When the CPUC acts on the application, it may adopt all or part of PG&E’s request, amend or modify it, or deny the application. The CPUC’s final decision may be different from the ALJ’s draft decision.

Public Advisor’s Office
505 Van Ness Avenue
Room 2103
San Francisco, CA 94102
1-415-703-2074 or 1-866-849-8390 (toll free)
TTY 1-415-703-5282 or 1-866-836-7825 (toll free)
Email to public.advisor@cpuc.ca.gov

If you are writing a letter to the Public Advisor’s Office, please include the number of the application (A.13-04-012) to which you are referring. All comments will be circulated to the Commissioners, the assigned ALJ and the CPUC’s Energy Division Staff.

On May 31, 2013, Pacific Gas and Electric Company (PG&E) filed an application with the California Public Utilities Commission (CPUC) to request an increase of $993 million in electric generation rates effective, January 1, 2014.

Every year, PG&E is required to estimate how much it will cost to purchase energy to meet its customers’ electricity needs. The cost includes purchases of energy from hydroelectric, solar and other renewable sources. For 2014, PG&E estimates that the cost to purchase electric generation will be $5.3 billion. In November 2013, PG&E will update this estimate. If the CPUC approves the request, PG&E will begin to recover its energy purchase costs through generation rates starting in 2014. PG&E does not profit from energy purchases; the cost of energy purchases is passed directly through to customers.

Throughout 2014, PG&E will track its actual costs to purchase energy against the amount collected from customers to cover those costs. At the end of the year, PG&E will increase or decrease generation rates to reflect any difference between the actual costs and the revenues collected from customers.

How will PG&E’s application affect me?
This application primarily affects electric generation revenues and rates. Most of PG&E’s customers receive bundled service, meaning they receive electric generation as well as transmission and distribution service from PG&E. This application impacts only the generation portion of electric rates.

If PG&E’s request is approved, the average residential monthly bill (based on 550 kilowatt-hours monthly electricity usage) will increase by $5.25 a month—or 5.7 percent, from $92.70 to $97.95. Actual bill impacts will vary depending on your level of electricity usage. The chart below shows the impact of this application on total authorized electric revenues for bundled customers. (Note: the percentages in the chart represent increases in revenue requested, not bill impact.) GRC ChartA

How will PG&E’s application affect non-bundled customers?
Direct Access (DA) and Community Choice Aggregation (CCA) customers receive only transmission and distribution service from PG&E. Since they do not receive electric generation from PG&E, their generation rates will not be affected by PG&E’s proposed change in generation rates. However, DA and CCA customers are required to pay certain procurement-related charges. The impact of PG&E’s application on DA and CCA customers is $49 million, or an average increase of 7.9 percent. This increase is in addition to any charges that DA and CCA customers pay to the companies that provide their electricity.

Another category of non-bundled customers are “departing load” customers: they do not receive electric generation, transmission or distribution services from PG&E. However, like DA and CCA customers, they are required to pay certain charges. The impact of PG&E’s application on departing load customers is $2.4 million, or an average increase of 7.2 percent.

How do I find out more about PG&E’s application?
You can view PG&E’s application and exhibits online at www.pge.com/RegCases. Select “2014 ERRA Forecast” 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: Pacific Gas and Electric Company
2014 ERRA Forecast Application
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 CPUC’s Division of Ratepayer Advocates (DRA) will review this application. The DRA is an independent arm of the CPUC, created by the California Legislature to represent the interests of all utility customers throughout the state, and to obtain the lowest possible rate for service that is consistent with reliable and safe service levels. The DRA has a multi-disciplinary staff with expertise in economics, finance, accounting and engineering. The DRA’s views do not necessarily reflect those of the CPUC. Other parties of record may also participate.

The CPUC may hold evidentiary hearings where parties of record present their proposals in testimony and are subject to cross-examination before an Administrative Law Judge (ALJ). These hearings are open to the public, but only those who are parties of record may present evidence or cross-examine witnesses during evidentiary hearings. Members of the public may attend, but not participate in, these hearings.

After considering all proposals and evidence presented during the hearing process, the ALJ will issue a draft decision. When the CPUC acts on this application, it may adopt all or part of PG&E’s request, amend or modify it, or deny the application. The CPUC’s final decision may be different from PG&E’s application.

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 http://www.cpuc.ca.gov/PUC/aboutus/Divisions/CSID/Public+Advisor  or as follows:

E-mail: public.advisor@cpuc.ca.gov

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

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

If you are writing or emailing the Public Advisor’s Office, please include the application number (A.13-05-015). All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the CPUC staff.

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