April 2009 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.
Celebrate Earth Day on April 25
Help preserve the environment
- PG&E's 2008 Annual Power MixPG&E delivers some of the cleanest electric power in the nation.
In an average year when rainfall is normal, approximately 50% of the electricity delivered to the 15 million Californians we serve emits no carbon.
PG&E works with its customers, communities and various stakeholders and agencies to find innovative ways to procure, build and deliver clean energy. We are planning for the future by exploring and investing in new technologies that harvest energy from the sun, ocean waves, tidal currents and agricultural waste. And we are actively investing in state-of-the-art, cleaner sources of fossil-based power to meet growing demand. - Power Content Label: HistoricAnnual report of actual electricity purchases for Pacific Gas and Electric in 2008
ENERGY RESOURCES PG&E ACTUAL POWER MIX Eligible Renewable 14% • Biomass and waste 4% • Geothermal 5% • Small hydroelectric 4% • Solar <1% • Wind 2% Coal* 8% Large Hydroelectric 16% Natural Gas 39% Nuclear 22% Other 1% TOTAL 100%
* The continued drought conditions in California have reduced hydroelectric generation. As a result, PG&E purchased more electricity than usual from the wholesale market. Because of state regulations that assume a higher mix of coal in those market purchases, these numbers reflect an increase in coal compared to 2007. However, PG&E's direct purchases of coal, which it is required to buy from small power producers, remain minimal at 1.7%.
Please see the section under the 2008 Annual Power Mix for more information about PG&E's power mix and ways PG&E is looking to provide a clean energy future. For specific information about this electricity product, contact Pacific Gas and Electric Company. For general information about the Power Content Label, contact the California Energy Commission at 1-800-555-7794 or www.energy.ca.gov/sb1305.
Note: The subcategories of eligible renewable resources do not add up to the 14% figure shown above due to rounding. - Proposition 65—Public WarningThe Safe Drinking Water and Toxic Enforcement Act of 1986, commonly referred to as Proposition 65, requires the governor to publish a list of chemicals "known to the State of California" to cause cancer, birth defects or other reproductive harm. It also requires California businesses to warn the public quarterly of potential exposures to these chemicals that result from their operations.
Pacific Gas and Electric Company uses chemicals in its operations that are "known to the State of California" to cause cancer, birth defects or other reproductive harm.
For example, Pacific Gas and Electric Company uses natural gas and petroleum products in its operations. Pacific Gas and Electric Company also delivers natural gas to its customers. Petroleum products, natural gas and their combustion by-products contain chemicals "known to the State of California" to cause cancer, birth defects or other reproductive harm.
A warning odorant is added to natural gas so that leaks of unburned gas can be quickly detected. If gas odor is detected, Pacific Gas and Electric Company should be contacted promptly.
Pacific Gas and Electric Company provides a free service to check and adjust your home gas appliances. Please call 1-800-PGE-5000 if you would like your gas appliances checked.
For additional information on this Proposition 65 warning, write to Pacific Gas and Electric Company, Prop. 65 Coordinator, 77 Beale Street B23H, PO Box 770000, San Francisco, CA 94177. - Planning for a Clean Energy FuturePG&E looks to invest in historic solar energy program
Notification of Application Filing by Pacific Gas and Electric Company (PG&E): Photovoltaic (PV) Program (A.09-02-019).
What is the PV Program?
The PV Program is a five-year program which demonstrates PG&E's commitment to environmental leadership. PG&E proposes to develop, construct, own and operate up to 250 Megawatts (MW) of clean solar photovoltaic facilities and acquire an additional 250 MW to be built and owned by independent developers. When all projects are up and running by 2015, they are expected to deliver power equal to the annual consumption of about 150,000 average homes each year. Prior to developing these facilities, PG&E intends to move forward with a pilot program developing up to 2 MW in order to establish sound processes and procedures for the larger program. PG&E will seek to pursue land options in order to secure land for the development of its program; however, whenever possible, projects developed and owned by PG&E will be built on land already owned by the utility or near its substations to minimize the cost and delays of interconnecting them to the power grid.
On February 24, 2009, PG&E filed the above referenced application with the California Public Utilities Commission ("CPUC"), in which PG&E requests authority to collect in electric generation rates the cost of owning and operating facilities associated with the PV Program. The annual revenue requirement increases each year from an increase relative to current rates of $16.5 million in 2010 to the highest increase relative to current rates of $170.4 million in 2014.
Does this mean rates will increase?
Yes, utility charges will increase as a result of this program. If the application is approved by the CPUC, electric generation rates will increase as early as January 1, 2011.
The table below shows the possible impact of rate changes on each customer class. The change shown below is for illustrative purposes and uses an increase of $170 million, which is the highest single year recovery for the program and is expected to occur in 2014. The total change to the system average bundled rate in each year (relative to current rates) is 0.1%, 0.4%, 0.8%, 1.1% and 1.4% for 2010, 2011, 2012, 2013 and 2014, respectively. Rates that are actually adopted by the CPUC may be higher or lower than PG&E's initial proposal shown here. PG&E does not expect rates for departing load customers to change, unless some of these costs are determined to be part of a nonbypassable charge.Electric Department Projected Rate Changes by Class
(Dollars in Thousands)Customer Class & Service Dollar Increase for PV Development in 2014 Total Percentage Increase for PV Development in 2014 Bundled Service Residential $65,174 1.3% Small Commercial $19,854 1.3% Medium Commercial $32,924 1.6% Large Commercial $18,781 1.7% Streetlights $813 1.2% Standby $430 1.4% Agriculture $7,848 1.3% Large Industrial $24,616 1.9% Total Bundled Change $170,440 1.4% Direct Access Service Residential $2 0.1% Small Commercial $0 0.0% Medium Commercial $0 0.0% Large Commercial $0 0.0% Agriculture $0 0.0% Large Industrial $0 0.0% Total Direct Access Change $2 0.0%
If the CPUC approves PG&E's application, the bill for a typical bundled customer (customers who receive electric generation, transmission and distribution service from PG&E) using 550 kWh per month in 2014 (the year of the highest revenue increase) would increase $0.32 from $73.32 to $73.64. The bill for a typical bundled customer using approximately twice the average baseline allowance, or 850 kWh per month, would increase $2.44 from $157.99 to $160.43. Individual customers' bills may differ.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
For TDD/TTY(speech-hearing impaired) call 1-800-652-4712
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 (A.09-02-019) to which you are referring. All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff. - Dynamic Pricing Rate StructureNotification of Application Filing
Pacific Gas and Electric Company would like to inform its customers about proposed new time-based electric rates starting in May 2010. This proposed rate structure, called "dynamic pricing," is being offered in response to the California Public Utilities Commission's (CPUC) mandate requiring the state's investor-owned utilities to explore offering electric rates that would shift energy use, and better align prices with the actual cost of energy. For example, customers will pay lower prices to run their equipment and appliances at night when demand is lower versus during the day when demand is higher.
If approved, this new dynamic pricing rate structure will go into effect for PG&E's customers beginning May 1, 2010. Large business customers with a maximum electric load that is greater or equal to 200 kilowatts (kW) will default to dynamic pricing rates on that date. Beginning on February 1, 2011, agricultural customers with a maximum electric load that is greater or equal to 200 kilowatts (kW) and all other business customers with SmartMeter™ devices for at least 12 months will default to dynamic pricing rates.
Customers will have the option to "opt out" of the new dynamic pricing rates. Additionally, all customers already participating in a demand response program will remain in that program and will not default to the dynamic pricing rate. Please note that dynamic pricing is also voluntary for residential customers.
These programs are designed to reduce demand at critical times by aligning prices charged during these periods with the wholesale market. PG&E does not benefit from the purchase of electricity in the wholesale market. This cost of electricity, as well as the cost of natural gas fuel, is a pass-through cost for our customers.
While the actual rates for dynamic pricing are still unknown, PG&E wanted to provide customers with as much information as possible on these proposed changes. PG&E will continue to keep customers updated as information becomes available. Please see below for further details on dynamic pricing:
Notification of Application Filing by Pacific Gas and Electric Company (PG&E): 2009 Rate Design Window (A.09-02-022)
On February 27, 2009, PG&E filed its 2009 Rate Design Window Application with the California Public Utilities Commission (CPUC). The Application complies with Decision 08-07-045, which ordered PG&E to propose certain time-differentiated electric rates called dynamic pricing and to request recovery of the costs of implementation.
What is Dynamic Pricing?
Dynamic pricing is designed to reflect variations in the actual cost of energy at different times of day and on different types of days. Dynamic pricing creates economic incentives for customers to actively manage their energy costs by shifting electricity use from when it costs more to when it costs less. For example, when given a notice a day in advance that electricity prices will be extremely high for a short period the following day, customers can arrange to use less electricity at that time and/or shift use to other times. This type of rate is also known as Critical Peak Pricing, a type of dynamic pricing that has been available to customers in the past. While dynamic pricing will remain voluntary for residential customers, Decision 08-07-045 specifies that most non-residential customers must be assigned by default to new dynamic pricing rate schedules. The effective implementation of dynamic pricing can lower customer costs and increase electricity system reliability by stabilizing demand over time, reducing demand when supply is low, and setting rates that better reflect the marginal cost of providing electricity.
What Impact will this Application Filing have on Rates? This Application requests authority to recover in rates approximately $33.1 million for the costs associated with implementing dynamic pricing through 2010. If the CPUC approves PG&E's full request, the cost will be recovered from all customers who receive transmission and distribution service from PG&E, including bundled1 and direct access2 customers. The average increase in bundled electric rates would be 0.22%.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, modify or deny it. The CPUC's final decision may be different from what PG&E proposes in its Application.For Further Information
For more details call PG&E at 1-800-PGE-5000
For TDD/TTY(speech-hearing impaired) call 1-800-652-4712
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 (09-02-022) to which you are referring. All comments will be circulated to the Commissioners, the assigned ALJ and the Energy Division staff.
1 Bundled customers take electric supply service from PG&E, as well as transmission and distribution service.
2 Direct access customers, as well as customers under Community Choice Aggregation, take electric supply from non-PG&E suppliers - Notification of Application Filing by Pacific Gas and Electric Company (PG&E): Application for Pension Contribution and for Approval of Mechanism to Adjust Pension Contribution Annually (A.09-03-003)On March 2, 2009, Pacific Gas and Electric Company (PG&E) filed Application No. 09-03-003 asking the California Public Utilities Commission to approve a total revenue increase in 2011 of $277.8 million, or 1.7 percent, over the 2009 authorized level of $16.818 billion to increase the contribution to PG&E's Retirement Plan trust, commonly referred to as a pension contribution, and to approve a mechanism to adjust pension-related revenue annually. Under the proposed mechanism, PG&E would be required to file an Advice Letter each year to adjust its pension-related revenue based on the contribution necessary to attain a fully-funded Retirement Plan at the end of a 7-year period.
The total consists of (1) an increase for electric service of $203.7 million, or 1.6 percent, over the 2009 authorized level of $12.643 billion, and (2) an increase for gas service of $74.1 million, or 1.8 percent, over the 2009 authorized level of $4.175 billion.
The requested $203.7 million increase in electric revenue would be distributed as follows:Electric Table
(Dollars in Thousands)Electric Customer Class Dollar Increase Total Percentage Increase Bundled Service Residential $99,234 1.9% Small Commercial $27,116 1.7% Medium Commercial $31,466 1.4% Large Commercial $15,428 1.3% Streetlights $753 1.1% Standby $380 1.2% Agriculture $10,094 1.6% Large Industrial $15,086 1.1% Total Bundled Change $199,557 1.6% Residential $103 3.2% Small Commercial $140 2.7% Medium Commercial $1,557 2.5% Large Commercial $1,020 1.9% Agriculture $27 2.6% Large Industrial $1,331 1.4% Total Direct Access Change $4,178 1.9%
By law, rates for bundled electric customers who use less than 130% of their baseline allowance would not increase. The bill for a typical bundled customer using 550 kWh per month would increase $0.49, or 0.7 percent, from $74.07 to $74.56. The bill for a typical bundled customer using approximately twice the average baseline allowance, or 850 kWh per month, would increase $3.72, or 2.3 percent, from $163.68 to $167.40 per month. Individual customers' bills may differ.
The requested $74.1 million increase in gas revenue would be distributed as follows:Gas Table
(Dollars in Thousands)Electric Customer Class Revenue Increase Percentage Increase Core Retail–Illustrative Bundled Residential Non-CARE $48,598 2.05% Residential CARE $7,838 1.61% Commercial, Small $12,929 1.46% Commercial, Large $443 0.55% NGV 1 (uncompressed service) $31 0.29% NGV 2 (compressed service) $5 0.29% Core Retail–Transport Only Residential Non-CARE $154 5.50% Residential CARE $17 4.33% Commercial, Small $937 4.84% Commercial, Large $11 3.31% Noncore–Transportation Only Industrial Distribution $1,818 4.44% Industrial Transmission/Backbone $1,013 1.50% Electric Generation $301 0.84% Wholesale–Transportation Only West Coast Gas - Castle $2 3.56% West Coast Gas - Mather-D $3 5.25% Transmission Level Wholesale $0 0.00% Unbundled Service $0 0.00% Total Change $74,100 1.77%
The bill for a typical residential customer using 40 therms per month would increase $1.07, or 1.9 percent, from $55.38 to $56.45. 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
For TDD/TTY(speech-hearing impaired) call 1-800-652-4712
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 (A.09-03-003) to which you are referring. All comments will be circulated to the Commissioners, the assigned ALJ and the Energy Division staff.
