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Notice of Application Filing for Approval for Recovery in Rates of Costs for PG&E's Proposed Pilot Program for Water Related Energy Efficiency Measures (A.07-01-026).

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NOTICE OF APPLICATION FILING FOR APPROVAL FOR RECOVERY IN RATES OF COSTS FOR PG&E'S PROPOSED PILOT PROGRAM FOR WATER RELATED ENERGY EFFICIENCY MEASURES (A.07-01-026)

In Compliance to an Assigned Commissioner Ruling (ACR) by the California Public Utilities Commission (CPUC), PG&E has filed an Application for recovery in rates of costs for PG&E's proposed pilot program for water related energy efficiency measures.

Related Embedded Energy Savings Pilot Program

This filing is made in compliance with an Assigned Commissioner Ruling described in further detail below. The Application seeks approval of a one-year water-related embedded energy savings pilot program (pilot) that will target commercial, industrial and institutional customers and large facilities serving low income customers. The pilot will offer water related efficiency measures and determine which methods best quantify the energy saved as a result of the water efficiency.

On January 16, 2007, Pacific Gas & Electric Company ("PG&E") filed the above referenced application with the CPUC.

PG&E proposes to partner with East Bay Municipal Utility District (EBMUD), Sonoma County Water Agency (SCWA), and Santa Clara Valley Water District (SCVWD) to implement the pilot. The Application seeks approval of a $4.4 million budget for the one-year pilot.

Background to the Filing of This Application

On October 16, 2006, an Assigned Commissioner's Ruling (ACR) by the CPUC was approved in the ongoing Energy Efficiency Rulemaking (R.06-04-010). This ACR ordered PG&E to file an Application seeking approval of a one-year pilot program related to the embedded energy savings attainable through water efficiency. The ACR ordered that the California Investor Owned Utilities partner with water providers to design and implement the water-related embedded energy savings pilot program. The ACR directed that the Applications seeking approval of the pilot proposal be filed on January 15, 2007.

Does this mean rates will increase?

Yes. Rates will increase a small amount beginning January 1, 2008 as a result of Commission approval of this program. Approximately $3.8 million will be added to electric rates, amounting to an average increase in electric rates of about 0.04 percent. Approximately $0.6 million of costs will be added to the Gas Public Purpose Program Surcharge, amounting to an increase in the average residential customer rate of 0.02 percent. The electric bill for a typical residential customer using 550 kWh per month would increase by one cent per month as a result of this request. The electric bill for a customer using 750 kWh per month would increase by about four cents per month. Individual customers' bills may differ.

THE CPUC PROCESS

The CPUC's independent Division of Ratepayer Advocates (DRA) will review this application filing, analyze the proposal, and present an independent analysis and recommendations for the CPUC's consideration. Other parties may also participate.

The CPUC may hold evidentiary hearings where the parties of record present their proposals in testimony and are subject to cross-examination before an Administrative Law Judge. These hearings are open to the public, but only those who are parties of record can present evidence or cross-examine witnesses during evidentiary hearings.

After considering all proposals and evidence presented during the hearing process, the CPUC 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 proposed application filing.

FOR FURTHER INFORMATION

For more details call PG&E at 800.743.5000
For TDD/TTY(speech-hearing impaired) call 800.652.4712

You may also contact the CPUC's Public Advisor with comments or questions as follows:

Public Advisor's Office
505 Van Ness Avenue, Room 2103
San Francisco, CA 94102
415.703.2074 or 866.849.8390 (toll free)
TTY 415.703.5282, TTY 866.836.7825 (toll free)
E-mail to public.advisor@cpuc.ca.gov

If you are writing a letter to the Public Advisor's Office, please include the application number (A.07-01-026). All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff.

Reviewed by: California Public Utilities Commission