June 2007 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.

Your household may qualify for reduced rates.
See if PG&E's CARE or FERA program can help you save money on your bill.

If you’re sensitive to extreme heat, peace-of-mind is a phone call away.
If extreme heat poses a health risk to you or someone in your home, you can request advance notification of a rotating power outage.


High temperatures can be life-threatening unless you take action to stay cool.
For more information and to locate a cooling center near you.


Protect our pipelines.
Protect your family.
For important safety tips about gas pipelines.


Agricultural Customers:
You may save money by selecting an alternate electric rate schedule.


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CARE/FERA

California Alternate Rates for Energy (CARE) Program
provides a 20% discount on your monthly gas and electric bill for qualifying households.

Family Electric Rate Assistance (FERA) Program
provides savings on your electric bill for large households of three or more persons with low-to middle-income. For current income guidelines, eligibility requirements and applications

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Temperature Sensitive Customers:

We’ll put you on our list to receive an advanced phone call if a rotating power outage is anticipated in your area. To sign up for this free service, fill out a Temperature Sensitive Customer Application.

Your help can ensure the reliability of your gas service:

Call Underground Service Alert (USA) by dialing 811 or 1.800.227.2600 at least two working days before you dig, augur or move earth in any way. For more information

Learn the warning signs of a gas pipeline leak:

  • Rotten-egg smell
  • Dirt spraying in the air
  • Hissing sound
  • Continual bubbling in a pond or creek
  • Plants that seem to be dead or dying for no reason

To report emergency natural gas situations:

  1. Move to a safe location and dial 911.
  2. Call PG&E at 1.800.743.5000.

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Agricultural Customers:

The electric rate schedules available to agricultural customers are summarized below. Compare your current rate schedule, found at the beginning of the Electric Account Detail section of your Pacific Gas and Electric Company (PG&E) bill with the ones listed below. Detailed gas and electric rate schedule information is available at pge.com/rateoptions.

A free rate analysis is available to you:

Contact your local PG&E business representative or call PG&E at 1.800.468.4743, to request a free electric rate analysis, rate schedule change, or rate option information. You may also do your own rate analysis online at pge.com/biz/biztools.html.

AG-1 For customers with maximum demands below 500 kilowatts who have low annual operating hours (generally less than 500 hours), and especially if they can’t minimize their use of electricity during summer weekdays (May 1 through Oct 31) between noon and 6 p.m. This schedule is not available to customers whose meter registers a maximum demand of 200 kilowatts or more for three consecutive months.

(Note: A TOU rate can be the best choice even if you need to run equipment from noon to 6 p.m., so please review the TOU rate options below.)

The TOU schedules listed below may save you money. A TOU meter is required for service on all TOU schedules. If a TOU meter must be installed to meet this requirement, the installation will generally occur within 4 weeks. There is no charge for the meter installation. Access to the meter is required at all times.

AG-4 For customers with moderate annual operating hours (generally 500 to 1,200). Additional savings are possible if you can minimize electricity use on summer weekdays between noon and 6 p.m. Customers whose service has a single motor load of at least 35 hp or multiple motor load of at least 15 hp may save even more on AG-4C if they can minimize usage on summer and winter weekdays from 8:30 a.m. through 9:30 p.m.

AG-5 For customers with high annual operating hours. Additional savings are possible if you can minimize electricity use on summer weekdays between noon and 6 p.m. Customers whose service has a single motor load of at least 35 hp or multiple motor load of at least 15 hp may save even more on AG-5C if they can minimize usage on summer and winter weekdays from 8:30 a.m. through 9:30 p.m.

AG-R For customers who need to operate 24 hours a day for up to four consecutive days a week (Thu-Sun or Sat–Tues) during the summer but can minimize use from noon to 6 p.m. on the three remaining weekdays.

AG-V For customers who can minimize electricity use on summer weekdays during any one of these time periods: noon to 4 p.m., 1 p.m. to 5 p.m., or 2 p.m. to 6 p.m.

NEM* Net Energy Metering Service. For customers qualifying for agricultural rates who operate a photovoltaic (solar) and/or wind electric generating facility with a generating capacity of 1,000 kW or less on their premises that offsets all or part of their electric load while interconnected with PG&E. Direct Access customers should contact their Energy Service Provider (ESP) for information about the ESP’s net metering program.

NEMBIO* Net Energy Metering Service for Biogas Customer Generators. A limited pilot program for bundled service customers on TOU rate schedules who operate an eligible Biogas Digester Electrical Generating Facility located on or adjacent to the customer’s premises that offsets all or part of their electric load (including the load from any of their qualifying dairy farm TOU accounts) while interconnected with PG&E.

* Net metering customers may be responsible for expenses for purchasing and installing metering that can perform net energy measurements.

Customers interested in interconnecting more than one generator, each subject to different rate treatment (for example, NEMBIO and NEM solar) on a single account, can now do so. For further information, contact PG&E via e-mail at gen@pge.com.

Check with Pacific Gas and Electric Company at pge.com/gen for current NEM & NEMBIO requirements or for more information.

DEMAND RESPONSE PROGRAMS

For eligible AG-4 & 5 (rates C&F only), the Critical Peak Pricing (E-CPP) program offers lower rates to customers who agree to reduce electricity use during critical peak periods during the summer season only.

For eligible demand metered TOU customers (excluding AG-R, AG-V, Schedule S), the Demand Bidding Program (E-DBP) is a no-risk program whereby participants earn bill credits for reducing their power usage when contacted.

Please visit the Business Services section of pge.com for energy saving tips, safety messages, rebate programs for energy efficient products, and more. You can also obtain information on Energy Usage, Billing History, Rate Comparison Tools, Energy Outage and Restoration Status, Detail of Bill, and Account Aggregation by going to pge.com/biz/biztools.html

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Notification of Application Filing by Pacific Gas and Electric Company (PG&E) for Approval of Cost of Capital Proposal (COC)

On May 08, 2007, PG&E filed an application with the California Public Utilities Commission (CPUC), in which PG&E asks for authority to increase its authorized COC for its electric and gas utility operations for test year 2008. If approved by the CPUC, PG&E’s electric COC revenues would increase bundled customer (a customer who receives electric generation as well as transmission and distribution services) rates by $ 32.4 million or 0.3 percent, and its gas COC revenues1 would increase by $7.1 million, or 0.2 percent.

In addition, PG&E proposes that the CPUC adopt an automatic adjustment mechanism called an Annual Cost of Capital Adjustment Mechanism (ACCAM). New to this proceeding, ACCAM would provide an adjustment mechanism (formula) for PG&E’s authorized cost of capital based on changes in benchmark (standard) interest rates, in lieu of an annual COC proceeding for the period 2009 to 2013. This proposal is the result of a COC workshop where attendees that included CPUC staff, an Administrative Law Judge and a Commissioner, expressed interest in considering an alternative to filing a COC application each year.

Cost of Capital is a financial term defining how much a corporation is allowed in rates as a return on its invested capital. In this proceeding, the Commission will determine PG&E’s reasonable costs of long-term debt, preferred stock, and common stock that are part of the authorized COC. The authorized COC adopted in this application will be applied to capital investment authorized for PG&E.

Summary of PG&E’s Key Reasons for Its Cost of Capital Request

  • PG&E believes that approval of this request is necessary to attract capital to meet its obligations to serve its customers safely and efficiently.
  • PG&E believes that approval of PG&E’s cost of capital proposals will assist the company in maintaining an investment-grade credit rating, thereby reducing overall financing costs and contributing to PG&E’s ability to perform its traditional role of procuring power for its customers.
  • PG&E’s authorized cost of capital determines the compensation for those who invest in PG&E.
  • The ACCAM will remove the costs and burdens associated with an annual COC proceeding.

How Our Cost of Capital Request May Affect Revenues Collected as Rates from Customers:

PG&E has provided an illustrative allocation of the electric and gas 2008 increases among customer classes under PG&E’s proposals, as shown in the tables below.

Allocation of Proposed COC Changes in Electric Revenue Requirements to Customer Classes
Electric Customer ClassDollar Increase in 2008 Cost of Capital Application(Dollars in thousands)Total Percentage Increase in 2008 COC
Bundled Service
Residential$15,9700.3%
Small Light and Power $4,414 0.3%
Medium Light and Power $4,440 0.2%
E-19 Class $3,032 0.2%
Streetlights $350 0.5%
Standby $57 0.2%
Agriculture $2,222 0.4%
E-20 $1,953 0.2%
Total Bundled Change$32,4380.3%
Direct Access Service
Residential $23 0.6%
Small Light and Power $32 0.5%
Medium Light and Power $307 0.5%
E-19 Class $326 0.5%
Agriculture $14 0.5%
E-20 $328 0.3%
Total Direct Access Change$1,030 0.4%
Total$33,4680.3%

If the CPUC approves PG&E’s proposal, a typical bundled residential electric customer using 550 kWh per month would see an increase in their average monthly bill of 0.1 percent or $0.09, from $71.99 to $72.08 per month. A customer using 850 kWh per month (roughly twice baseline) would receive an increase of 0.4 percent or $0.61, from $149.55 to $150.16 per month. Individual bills may differ.

Allocation of Proposed COC Changes in Gas Revenue Requirements to Customer Classes
Gas Customer Class Dollar Increase in 2008 Cost of Capital Application (Dollars in thousands) Total Percentage Increase in 2008 COC
Core Retail—Bundled
Residential$5,2390.2%
Small Commercial1,3850.1%
Large Commercial42 0.0%
Core Retail—Transportation Only
Residential 16 0.7%
Small Commercial 100 0.5%
Large Commercial 1 0.3%
Noncore Retail—Transportation Only
Industrial Distribution 173 0.5%
Industrial Transmission 93 0.2%
Industrial Backbone 1 0.2%
Electric Generation, Dist. and Transmission 20 0.0%
Electric Generation Backbone 8 0.1%
Wholesale 0 0.0%
Natural Gas Vehicle, Core 1 0.0%
Total Change$7,079 0.2%

If the CPUC approves PG&E’s proposal, the bill for a typical residential gas customer using 45 therms per month would increase $0.11, or 0.2 percent, from $62.24 to $62.35. Individual 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
You may 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 name of the application to which you are referring. All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff.

Reviewed by: California Public Utilities Commission (CPUC)