June 2014 Bill Inserts

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CARE FERA image
You may save money with the CARE or the FERA Program

California Alternate Rates for Energy (CARE)
The CARE Program offers a monthly discount on PG&E bills for qualifying households and housing facilities.
Review the CARE Income Guidelines to see if you qualify.

Family Electric Rate Assistance (FERA)
If you do not qualify for the CARE Program, your household may still qualify for the FERA Program, which offers a monthly discount on electric bills for households of three of more people with a slightly higher income than required for CARE.
Review the FERA Income Guidelines to see if you qualify.

Summary
On May 30, 2014, Pacific Gas and Electric Company filed two separate applications with the California Public Utilities Commission (CPUC). The filings are separate requests to recover different types of energy-related costs, which are described below. If approved, both applications will affect electric rates and customers’ electric bills.

Every year, PG&E estimates how much it will cost to purchase energy to meet its customers’ electricity needs. This filing, known as the Energy Resource Recovery Account (ERRA) forecast, is Application 14-05-024. It includes the costs of fuel needed to generate electricity as well as the costs of buying electricity from third parties, such as renewable energy generators. In its application, PG&E requests an increase of $319 million in electric rates to recover costs for 2015.

The second application, A.14-05-025, forecasts the revenues which will be returned to eligible customers from the sale of emissions allowances associated with California’s greenhouse gas (GHG) reduction program. It also seeks to recover the forecasted administrative expenses associated with this state program. In its application, PG&E seeks to return approximately $443 million to customers and asks to recover approximately $1.4 million in administrative costs.

About these filings
If the CPUC approves these applications, PG&E will begin to recover its costs in electric rates, effective January 1, 2015. At the same time, PG&E will apply GHG revenue to rates, which will help lower eligible customers’ bills.

PG&E does not profit from either application. In ERRA (A.14-05-024), the cost of energy is passed directly to PG&E’s customers with no markup. Any revenue collected from the sale of GHG allowances will be returned to eligible customers through a credit on their bill or through a rate reduction. The exact amount of returned revenues may change based on market factors and are subject to regulatory approval. The legislature and CPUC has determined the order and method by which they are returned to customers. They are:
  • First, to some industrial customers annually, via a fixed-amount bill credit.
  • Then, to small business and residential customers each month, via a bill credit based on usage.
  • Then, an additional credit for all residential households semi-annually, which will appear on customers’ energy statement as the California Climate Credit.

Both filings have a system to track actual costs and revenues with forecasted costs and revenues.

How will PG&E’s application affect me?
If the CPUC approves PG&E’s request in the ERRA filing (A.14-05-024) it will increase rates. However, the GHG application (A.14-05-025), if approved, would offset this rate increase. Altogether, PG&E proposes to recover $378 million from bundled service customers—those who receive electric generation as well as transmission and distribution services from PG&E.

The chart below illustrates the net impact on proposed changes in rates. The distribution of these rate changes to each customer class ultimately depends on the CPUC’s final decisions.

GHG Chart

If both applications are approved, PG&E estimates that a residential customer using 500 kWh per month would see an average bill increase of $1.42 (or 1.9 percent), from $74.44 to $75.86.
Individual customers’ bills will differ. Eligible residential customers will receive a California Climate Credit twice a year in April and October on their electricity bills of approximately $26.56.

How will PG&E’s applications affect non-bundled customers?
Direct Access (DA) and Community Choice Aggregation (CCA) customers only receive electric transmission and distribution services from PG&E. Since PG&E does not buy energy for these customers, PG&E’s applications do not affect their generation rates. However, DA and CCA customers are required to pay certain procurement-related charges, and eligible customers will receive GHG revenue. The net impact of PG&E’s applications on DA and CCA customers is -$9 million, or an average decrease of 1.3 percent. DA and CCA customers will receive their share of GHG revenues through their distribution rates. The revenues will offset their overall bills.

Another category of non-bundled customers is Departing Load customers. These customers do not receive electric generation, transmission or distribution services from PG&E for their departing load. However, like DA and CCA customers, they are required to pay certain procurement-related charges. The net impact on Departing Load customers is $0.3 million, or an average increase of 1.1 percent.

How do I find out more about PG&E’s proposals?
If you have questions about PG&E’s filings, 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 filings and exhibits, please write to PG&E at the address below:
Pacific Gas and Electric Company
2015 Energy Resource Recovery Account and Generation Non-bypassable Charges Forecast
P.O. Box 7442
San Francisco, CA 94120

Pacific Gas and Electric Company
Greenhouse Gas Revenue and Reconciliation Application
P.O Box 7442
San Francisco, CA 94120

A copy of PG&E’s filings 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 filings (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 filings will be reviewed through the CPUC’s formal administrative law process. The filed proposals are assigned to a CPUC Administrative Law Judge (Judge). The Judge presides over the proceeding, which may include hearings 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 unless they are parties to the case. The hearings and documents submitted in the proceeding become part of the formal record that the Judge 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 the filing, it may adopt all or part of PG&E’s request, modify it or deny the request.

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

If you would like to learn how you can participate in these proceedings, 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:
1-866-849-8390 (toll-free) or (415) 703-2074
TTY 1-866-836-7825 (toll-free) or (415) 703-5282

If you are writing or emailing the Public Advisor’s Office, please include the proceeding number (ERRA, A.14-05-024; GHG, A.14-05-025). All comments will be circulated to the Commissioners, the assigned Judge and the CPUC staff.
On June 2, 2014 Pacific Gas and Electric Company (PG&E) filed an application with the California Public Utilities Commission (CPUC) requesting approval for recovery of infrastructure cost associated with IT and administrative functions. These costs will be used to implement a procedure that allows bundled service customers to directly bid their reduction in electric usage into California’s wholesale electricity markets. If approved, PG&E’s application requests $1.5 million to be collected in rates effective January 1, 2015.

Demand Response programs motivate electric customers through financial incentives to reduce their electric usage during high-demand periods and/or shift electric usage to other periods when electric demand is lower. This program increases electric reliability and reduces California’s total power purchase costs. Previous CPUC Decision 12-11-025 required that PG&E allow Demand Response customers to schedule their electric load reductions directly with the California Independent System Operator (CAISO).

How will PG&E's application affect me?
If approved, this application would increase electric rates by less than one percent for the customers listed below:
  • Bundled service customers, those who receive electric generation, as well as transmission and distribution service from PG&E.
  • Direct access, those who only receive transmission and distribution service from PG&E.
  • Community choice aggregation customers, those who only receive transmission and distribution service from PG&E.

A residential customer using the system wide average of 550 kWh per month would see an average bill increase of $0.01 (or 0.01 percent), from $95.39 to $95.40. Actual bill impacts will vary depending on your electric usage.

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 "Demand Response Rule 24 Cost Recovery" from the Cases dropdown menu.

If you have questions about PG&E’s application, please contact PG&E at 1-800-743-5000. TDD/TTY users 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
Demand Response Direct Participation Cost Recovery
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 (Judge). The Judge 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 Judge 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 (14-06-001). All comments will be circulated to the Commissioners, the assigned Judge and the CPUC staff.
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