August 2008 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.

Are you prepared for an emergency?
Get important energy-safety tips and information.
Residential Customers:
There may be optional rate schedules available to help you lower your energy bills.
Agricultural Customers:
You may save money by selecting an alternate electric rate schedule.
Business Customers:
You may save money by choosing a different gas supplier or selecting a different rate schedule.

What types of energy resources make up PG&E’s power mix?

PG&E delivers some of the cleanest electric power in the nation: on average, approximately 50% of the electricity delivered to the 15 million Californians we serve emits no carbon.

Note: Power mix includes all PG&E-owned generation plus all of PG&E's power purchases.

PG&E works with its customers, communities and various stakeholders and agencies to find innovative ways to procure and deliver clean energy. We are planning for the future by exploring new technologies that harvest energy from the sun, ocean waves, tidal currents and agricultural waste. And we are actively involved in investing in state-of-the-art, cleaner sources of fossil-based power to meet growing demand.

Power Content Label

ENERGY RESOURCESPG&E 2008 POWER MIX*
(Projected)
2007 CA POWER MIX**¹
(For Comparison)
Eligible Renewable14%10%
   Biomass and waste   4%   <1%
   Geothermal   4%   2%
   Small hydroelectric   4%   6%
   Solar   <1%   0%
   Wind   2%   2%
Coal2%32%
Large Hydroelectric²17%24%
Natural Gas44%31%
Nuclear22%3%
Other1%0%
TOTAL100%100%

* At least 95% of PG&E's Power Mix is from PG&E-owned resources, purchased from individual suppliers, or provided by the California Department of Water Resources.

** Percentages are estimated annually by the California Energy Commission based on electricity sold to California consumers during the previous year.

For information about PG&E's Power Mix, contact PG&E at 1-800-PGE-5000. For information about the CA Power Mix or for general information about .the Power Content Label, contact the California Energy Commission at 1-800-555-7794 or {www.energy.ca.gov/consumer}.

¹ 75% of California's electric supply is generated or purchased by the state's investor-owned utilities, the majority of the state's municipal utilities and various other retail energy providers. The 2007 "CA Power Mix" shown above lists the remaining 25% of California's power that is generated or purchased from other sources.

² A significant amount of the energy generated by PG&E comes from clean, large hydroelectric power stations, which under California law, do not qualify as an eligible renewable resource.

Notification of Application Filing by Pacific Gas and Electric Company (PG&E) to Recover in Rates the Cost to Complete Construction of the TESLA Generating Station (A.08-07-018)

WHAT IS THE TESLA GENERATING STATION?

The Tesla Generating Station (TG Station) is a proposed 560-megawatt, natural gas-fired combined-cycle electrical power generating facility that is located in eastern Alameda County. The TG Station was licensed by the State of California Energy Resources Conservation and Development Commission (CEC) in 2004 after an environmental review. PG&E is now seeking approval from the California Public Utilities Commission (CPUC) to build the CEC-approved facility. If its application is approved, PG&E will be the sole owner and operator of the facility. PG&E is adding this facility to improve its ability to provide a reliable electric supply for its customers in the future.

INFORMATION ABOUT THIS FILING

On July 18, 2008, PG&E filed application No. 08-07-018 with the CPUC, requesting authorization to recover in rates an estimated $850 million in costs for construction and operation of the proposed facility, excluding fuel costs. This request assumes that the facility will begin operation by the fall of 2011. The recovery of these construction and operation costs in rates would not begin until 2011.

HOW DOES THIS FILING AFFECT RATES?

Utility charges on your bill will increase as a result of this project. PG&E's request will increase total electric generation rates by $175.9 million per year. If the application is approved by the CPUC, rates for bundled customers (those who receive electric generation, transmission and distribution service from PG&E) will increase by 1.6 percent on average, compared to current rates. In general, rates for direct access customers (those who purchase their electricity from a non-utility supplier) will not be subject to change. In addition, PG&E expects that rates to departing load customers (who receive electric generation from a non-utility supplier, as well as transmission and distribution service from a publicly-owned utility) will be unchanged. The rate changes by customer class for bundled customers and direct access customers associated solely with this application are provided in the table below.

Pacific Gas and Electric Company Illustrative Revenue¹ Increase
(Dollars in Thousands)

Customer ClassProposed Revenue IncreasePercentage Change
Bundled Service
Residential$70,3551.5%
Small Commercial$20,3421.4%
Medium Commercial$32,6611.8%
Large Commercial$19,2171.9%
Streetlights$8191.3%
Standby$4431.5%
Agriculture$8,1201.4%
Industrial$23,9072.1%
Total Bundled Change$175,8651.6%
Direct Access Service
Residential$30.1%
Small Commercial$00.0%
Medium Commercial$00.0%
Large Commercial$00.0%
Agriculture$00.0%
Industrial$00.0%
Total Direct Access Change$30.0%

¹ Revenue is a technical term used to describe the total amount of money customers pay in rates for the electric services they receive.

If the CPUC approves PG&E's application, the bill for a typical bundled customer using 550 kWh per month would increase $0.34 from $72.13 to $72.47. The average usage for customers using about twice their baseline allowance is about 850 kWh. The bill for this average bundled customer would increase $2.64 from $148.44 to $151.08 per month. Individual customers' bills may differ.

THE CPUC PROCESS

The CPUC's Independent Division of Ratepayer Advocates (DRA) will review this Application. DRA is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state and obtain the lowest possible rate for service consistent with reliable and safe service levels. DRA has a multi-disciplinary staff with expertise in economics, finance, accounting and engineering. DRA's views do not necessarily reflect those of the CPUC. Other parties of record will 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 can present evidence or cross-examine witnesses during evidentiary hearings. Members of the public may attend these hearings, but are not allowed to participate, only listen.

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 proposed application filing.

FOR FURTHER INFORMATION

For more details call PG&E at 1-800-PGE-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
1-415-703-2074 or 1-866-849-8390 (toll free)
TTY 1-415-703-5282, TTY 1-866-836-7825 (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 number of the application (08-07-018) to which you are referring. All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff.

PG&E’s Application for Approval of the 2009–2011 Energy Efficiency Programs and Budgets Application

Per Decision 07-10-031 the California Public Utilities Commission (CPUC) authorized PG&E to file an Application on July 21, 2008 requesting approval of its 2009–2011 Energy Efficiency Programs and Budgets (Application). In this Application filing, PG&E proposes a budget for the design, administration, implementation and evaluation of its proposed energy efficiency programs for years 2009–2011.

Energy efficiency programs are aimed at promoting the use of high efficiency products, appliances, equipment, services and practices to reduce energy usage while maintaining a comparable level of service. Energy efficiency activities typically require permanent replacement of energy-using equipment with more efficient models. Some examples of these types of equipment include refrigerators, light fixtures and cooling equipment. PG&E's energy efficiency programs provide incentives on equipment and information to residential, commercial, agricultural and industrial customers to increase energy efficiency at homes and work places to reduce energy demand. Through these conservation and energy efficiency measures, PG&E customers minimize the need for new generation, reduce carbon emissions and other pollutants, improve energy reliability, and contribute to price stability.

PG&E's programs work in tandem with those of the other investor-owned utilities in California to achieve the CPUC's statewide energy efficiency savings goals. PG&E's programs also play a key role in the CPUC's statewide Energy Efficiency Strategic Plan, which outlines long term goals and processes for achieving greater energy efficiency in California over the next several decades. To achieve its savings goals, PG&E leverages the support of local governments, community organizations, statewide organizations and other third-party partnerships. In order to maximize customer energy savings and convenience, PG&E has created an integrated offering of all of its energy efficiency, demand response, low-income and solar programs.

PG&E's currently authorized energy efficiency funding for 2006-2008 is $943 million. PG&E's proposed energy efficiency funding for 2009-2011 is about $1.9 billion. The annual increase in 2009 resulting from this Application compared to the amounts currently being recovered in gas and electric rates for energy efficiency programs is shown in the table below. This increase is required to meet the aggresive energy savings targets that have been established by the CPUC, and would also apply to 2010 and 2011.

Annual Increase from 2008 for Energy Efficiency Program Funding

(Dollars in Millions)

Electric$197.2
Gas$53.5
Total Annual Increase in EE Funding$250.7

HOW WILL THIS IMPACT RATES?

Approval of PG&E's Application will result in an increase in gas and electric public purpose program charges. The annual electric increase will result in an increase in public purpose program charges paid by all electric customers including bundled¹, direct access³ and departing load customers who are required to pay public purpose program charges. The annual gas increase will result in an increase in the 2009–2011 gas public purpose program surcharges paid by residential, commercial and industrial customers. PG&E expects that the rate changes associated with this Application will be consolidated with changes in other CPUC proceedings, so the eventual net change in rates for individual customers is difficult to predict. PG&E has provided an illustrative allocation of the electric and gas 2009 increases among customer classes under PG&E's Application, as shown in the tables below.

¹ Customers who receive electric generation as well as transmission and distribution service from PG&E.

³ Customers who purchase energy from an energy provider other than PG&E

Electric Table
(Dollars in Thousands)

Electric Customer ClassDollar Increase in 2009
for Energy Efficiency
Total Percentage Increase in
2009 for Energy Efficiency
Bundled Service
Residential$79,8151.7%
Small Commercial$23,2721.6%
Medium Commercial$32,1131.7%
Large Commercial$17,9921.8%
Streetlights$1,1741.8%
Standby$4491.5%
Agriculture$8,8641.6%
Industrial$18,4421.6%
Total Bundled Change$182,1201.7%
Direct Access Service
Residential$1333.7%
Small Commercial$1933.4%
Medium Commercial$3,5795.0%
Large Commercial$3,0564.8%
Agriculture$484.0%
Industrial$6,3355.6%
Total Direct Access Change$13,3445.2%

If the CPUC approves PG&E's Application, the bill for a typical bundled customer using 550kWh per month would increase $0.38 from $72.13 to $72.51. The average usage for customers using about twice their baseline allowance is about 850 kWh. The bill for this average bundled customer would increase $2.99 from $148.44 to $151.43 per month.

Gas Table
(Dollars in Thousands)

Gas Customer ClassDollar Increase in 2009 for Energy EfficiencyPercentage Increase in 2009 for Energy Efficiency
Bundled Service
Residential$32,4531.34%
Small Commercial$7,1180.79%
Large Commercial$1,6411.95%
Industrial Distribution$1,4394.04%
Industrial Transmission$3,8796.70%
Industrial Backbone$4510.42%
Electric Generation, Distribution & Transmission$00%
Electric Generation Backbone$00%
Wholesale$00%
Total Change$46,5756.84%

If the CPUC approves PG&E's Application, a residential customer using 40 therms of gas per month would see an average monthly gas bill increase of $0.73 or 1.3%, from $54.74 to $55.47. Individual customers' bills may differ.

THE CPUC PROCESS

The CPUC's independent Division of Ratepayer Advocates (DRA) will review this Application. DRA is an independent arm of the CPUC, created by the Legislature to represent the interests of all utility customers throughout the state and obtain the lowest possible rate for service consistent with reliable and safe service levels. DRA has a multi-disciplinary staff with expertise in economics, finance, accounting and engineering. DRA's views do not necessarily reflect those of the CPUC. Other parties of record will 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 can present evidence or cross-examine witnesses during evidentiary hearings. Members of the public may attend these hearings, but are not allowed to participate, only listen.

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 proposed Application filing.

FOR FURTHER INFORMATION

For more details call PG&E at 1-800-PGE-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
1-415-703-2074 or 1-866-849-8390 (toll free)
TTY 1-415-703-5282, TTY 1-866-836-7825 (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.