September 2010 Bill Inserts

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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.

• Take a step in the right direction: Lower your carbon footprint today
  The ClimateSmart™ Program makes it easy to take personal action against climate change.
  
  Offset your energy carbon footprint. The energy we use every day in our homes and businesses generates greenhouse gas emissions. PG&E's ClimateSmart program enables you to balance out those emissions by investing in environmental preservation and restoration projects that reduce or absorb greenhouse gases. All reductions are independently verified, registered and retired on your behalf. So it's easy. Take your first step toward a lower carbon footprint today.
  
  It's less than $5 a month for a typical household. The less energy you use, the less your ClimateSmart contribution will be. At $0.00254 per kilowatt-hour and $0.06528 per thermal unit, it costs less than $5 a month for the typical home. The program is completely voluntary, and you may opt out at any time. And if that is not reason enough, your contributions are also 100% tax deductible.
  
  Invest in California's low-carbon economy. The ClimateSmart program invests in new, California- based projects that help create jobs and build a low-carbon future for our state. From a dairy methane- capture project in Bakersfield to a sustainably managed forest in Mendocino County, your contributions are going to work in these and other projects in a town near you.
  
  Enroll online at www.pge.com/climatesmart
• Natural gas customers: Please read this important gas safety information
  As a natural gas pipeline operator, Pacific Gas and Electric Company (PG&E) owns and is responsible for maintaining natural gas lines up to the gas service delivery point—the point where PG&E piping connects to a customer's pipes. Typically, this is near the gas meter outlet where the PG&E meter "tee" connects to the pipes leading into a building (or if there is no building, to the fence or wall enclosing gas-fired equipment).
  
  PG&E does not maintain any natural gas lines beyond the gas service delivery point. Lines beyond this point are normally owned by the customer*, so inspecting and keeping up this piping is your responsibility. Examples of this piping include any buried piping from the gas service delivery point to your house or appliances, or from your house to a swimming pool heater, spa or other buildings. Please refer to the diagram below for more detail.
  
  Natural gas piping should be inspected periodically for leaks and, if it’s metallic, for corrosion. If you suspect a gas leak or find evidence of corrosion to metallic piping, you should take immediate steps to correct the problem:
  

  • Leave the area immediately and move to a safe location.
  • Dial 911 and then call PG&E at 1-800-743-5000.
  • Warn others to stay away.
  • Do not attempt to extinguish a natural gas fire or to stop the flowing of gas.
  • Do not try to operate pipeline valves.
  • Unless you are a safe distance away from the suspected leak, do not light a match, start an engine, use a home or cell phone, or operate electric devices such as switches, door bells, radios, televisions, lights, appliances and garage openers.

  
  When digging near buried gas piping, locate the piping in advance and carefully dig by hand. Contact a certified plumbing contractor to help you locate and inspect your buried gas piping. Call 811 to have underground utility-owned facilities located.
  
  If you have questions about this notice, please call PG&E at 1-800-743-5000.
  
  *"Customer" refers to the owner of the gas piping system served by PG&E. This may be either the property owner or another party who owns the gas piping.
  
  
• Notification of Pacific Gas and Electric Company's Application to Recover Pumped Storage Study Costs
  On August 20, 2010, Pacific Gas and Electric Company (PG&E) filed an application with the California Public Utilities Commission (CPUC), requesting authorization to recover costs associated with studies performed to evaluate the feasibility of developing new hydroelectric pumped storage projects. If a project (or projects) is found feasible as a result of these studies, PG&E would seek approval from the CPUC to build the project and recover construction costs in a later filing pursuant to the CPUC's standard cost of service ratemaking process. PG&E is also requesting authorization from the CPUC to establish a balancing account to record and recover costs associated with the pumped storage studies.
  
  This application requests recovery of $33.475 million for costs associated with performing the pumped storage feasibility studies discussed above. Revenues required from customers would be collected in rates over a six-year period, beginning with the next available rate change after CPUC approval of this application.
  
  What is the Pumped Storage Project? A hydroelectric pumped storage project is a technology used to store electrical energy. Water is pumped from one reservoir to another reservoir at a higher elevation to store energy. When the stored energy is required to meet customer demand, the water is allowed to flow from the upper reservoir through hydroelectric generating equipment to the lower reservoir where it is captured and is once again available for pumping.
  
  Why is PG&E Studying Pumped Storage? PG&E is looking for ways to support the addition of renewable electricity generation resources. Additional renewable resources will benefit the environment, our customers and meet California's goal of having load-serving entities, such as PG&E, procure 33 percent of retail sales from eligible renewable energy resources by 2020. Some renewable generation technologies like wind and solar are dependent on weather conditions that may not coincide with customer demand. Pumped storage projects can support the use of intermittent renewable resources by using output generated during off-peak demand hours to pump water for energy storage and then releasing the water for additional electricity generation during peak demand periods. Pumped storage projects can integrate renewable generation resources into the grid, providing for more stable grid operation with higher degrees of renewable electricity production.
  
  Will rates increase as a result of this application? Yes. However, the increase in rates resulting from this application will be spread over a six-year period and will not appear in customer bills until the next available rate change after CPUC approval of this application. Using the highest year costs of $8.512 million, the bundled system average rate increase will be less than 0.07 percent, relative to current rates.
  
  FOR FURTHER INFORMATION
  To request a copy of the application and exhibits or for more details, call PG&E at
  1-800-743-5000. For TDD/TTY (speech-hearing impaired), call 1-800-652-4712.
  
  You may request a copy of the application and exhibits by writing to:
  
  Pacific Gas and Electric Company
  Pumped Storage Project
  P.O. Box 7442, San Francisco, CA 94120
  
  THE CPUC PROCESS
  The CPUC's Division of Ratepayer Advocates (DRA) may review this application. The 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. The DRA has a multi-disciplinary staff with expertise in economics, finance, accounting and engineering. The 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 may present evidence or cross-examine witnesses during evidentiary hearings. Members of the public may attend, but not participate in, these hearings.
  
  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 application.
  
  If you would like to learn how you can participate in this proceeding or if you have comments or questions, you may contact the CPUC's Public Advisor 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 or 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 (PG&E Pumped Storage Project Application) to which you are referring. All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff.
  
  A copy of PG&E's Pumped Storage Project application and exhibits are also available for review at the California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.–noon.
• Notification of Pacific Gas and Electric Company’s Application for Air Resource Board Assembly Bill 32 Cost of Implementation Fee Recovery Program (A.10-08-002)
  On August 2, 2010, Pacific Gas & Electric Company (PG&E) filed an application with the California Public Utilities Commission (CPUC) in which PG&E asks for authority to recover costs associated with the Assembly Bill (AB) 32 Cost of Implementation Fee. PG&E estimates that its natural gas revenue required to cover these costs will increase by $15.6 million and its electric revenue required will increase by $0.5 million, both over a three-year period, beginning January 1, 2011.
  
  What is the Air Resource Board Administration Cost Recovery Program? On September 27, 2006, AB 32, “the California Global Warming Solutions Act of 2006,” was signed into law. Among other provisions, AB 32 authorized the Air Resource Board (ARB) to adopt a schedule of fees (as specified in section 95201) to be paid by all sources of greenhouse gas emissions to fund the administrative costs of implementing AB 32.
  
  On August 2, 2010, PG&E, Southern California Edison, Southern California Gas Company and San Diego Gas & Electric Company jointly filed an application (A.10-08-002) with the CPUC requesting authority to allow PG&E to recover costs associated with the AB 32 Cost of Implementation Fee. The application asks for CPUC approval to record for future recovery of all costs associated with the AB 32 Cost of Implementation Fee. Electric costs will be recorded to the Energy Resource Recovery Account. Natural gas costs for core customers will be recorded to the Core Fixed Cost Account and natural gas costs for noncore customers will be recorded to the Noncore Cost Account.
  
  Will rates increase as a result of this application? Yes, approval of this application will result in a slight increase to electric rates by less than one percent for bundled service customers (those who receive electric generation and transmission and distribution service from PG&E) as well as for natural gas customers. Using the forecast revenue requirement of $0.2 million for electric, the bundled system average rate will increase 0.0013% in 2011, relative to current rates. Similarly, using the forecast annual revenue requirement of $4.6 million for natural gas, average rate impacts for bundled core customers will increase 0.1% and unbundled customers affected by the change are shown in the following table:
  
  
  
  FOR FURTHER INFORMATION
  
  To request a copy of the application and exhibits or for more details, call PG&E at
  1-800-743-5000. For TDD/TTY (speech-hearing impaired), call 1-800-652-4712.
  
  You may request a copy of the application and exhibits by writing to:
  
  Pacific Gas and Electric Company
  Air Resource Board Assembly Bill 32 Cost of Implementation Fee Recovery Program
  P.O. Box 7442, San Francisco, CA 94120
  
  THE CPUC PROCESS
  
  The CPUC’s Division of Ratepayer Advocates (DRA) may review this application. The 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. The DRA has a multi-disciplinary staff with expertise in economics, finance, accounting and engineering. The 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 may present evidence or cross-examine witnesses during evidentiary hearings. Members of the public may attend, but not participate in, these hearings.
  
  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 application.
  
  If you would like to learn how you can participate in this proceeding or if you have comments or questions, you may contact the CPUC’s Public Advisor 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 or 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 (10-08-002) to which you are referring. All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff.
  
  A copy of PG&E’s Air Resource Board Assembly Bill 32 Cost of Implementation Fee Recovery Program application and exhibits are also available for review at the California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.–noon.
• Notification of Pacific Gas and Electric Company's Default Residential Rate Program Application (A.10-08-005)
  On August 9, 2010, Pacific Gas and Electric Company (PG&E) filed its default residential rate design application with the California Public Utilities Commission (CPUC). The application complies with CPUC Decision 08-07-045. It includes a proposal for residential electric pricing called dynamic pricing and a request for recovery of implementation costs.
  
  What is Dynamic Pricing?
  Dynamic pricing is designed to reflect variations in the cost of electricity at different times of day and on days when temperatures are expected to be high. Dynamic pricing creates economic incentives for customers to actively manage their energy costs by reducing their electricity usage and/or by shifting load from high cost periods to lower cost periods. For example, when notified a day in advance that electricity prices will be high for a short period the next day, customers can arrange to use less electricity during that period.
  
  This is also known as Critical Peak Pricing (CPP). Eligible customers will be automatically placed onto this CPP rate, however, they will be able to opt-out to a standard rate. The approach of automatically switching residential customers to a CPP rate, subject to opt-out, is known as "defaulting" customers to CPP. Effective implementation of dynamic pricing will provide opportunities for customers to lower their electricity costs while increasing electricity system reliability through demand stabilization over time and demand reduction when supply is low.
  
  Will rates increase as a result of this application?
  In its primary proposal, PG&E requests that the CPUC defer further consideration of this initiative to default residential customers to CPP until PG&E's next general rate design case in 2014. Deferring consideration of this initiative would have no current impact on rates.
  
  If the CPUC does not defer the issue to the next general rate design case, PG&E requests approval of its residential default rate proposal to be implemented beginning in 2014 and authority to recover approximately $141 million for implementation costs through 2014. If the CPUC approves implementation of this default proposal for residential customers in this case, the cost will be recovered from all customers who receive transmission and distribution service from PG&E, including bundled¹, Community Choice Aggregation and Direct Access² customers. The table below shows the possible increase to each customer class needed to recover these costs. The increase shown below is for illustrative purposes and uses an increase of $101.4 million, which is the highest single year recovery for the program costs incurred through 2014 and is expected to occur in 2015. Rates actually adopted by the CPUC may be higher or lower than PG&E's initial proposal shown here.
  
  
  
  If the CPUC approves PG&E's application, a typical residential customer using 550 kilowatt-hours (kWh) per month will see the average monthly bill change from $77.71 to $78.01, an increase of $0.30 per month. A residential customer using approximately 850 kWh per month, which is twice the baseline allowance, will see the average monthly bill change from $175.67 to $178.04, an increase of $2.37 per month. Individual bills may differ.
  
  ¹ Bundled customers take electric supply service from PG&E, as well as transmission and distribution service.
  
  ² Direct Access customers, and customers in Community Choice Aggregation programs, take electric supply from non-PG&E suppliers. Other types of departing load customers (that is, customers that receive electric generation, transmission and distribution services from non-PG&E suppliers) will not be affected by this application.
  
  FOR FURTHER INFORMATION
  To request a copy of the application and exhibits or for more details, call PG&E at
  1-800-743-5000. For TDD/TTY (speech-hearing impaired), call 1-800-652-4712.
  
  You may request a copy of the application and exhibits by writing to:
  Pacific Gas and Electric Company
  Default Residential Rate Program
  P.O. Box 7442
  San Francisco, CA 94120
  
  THE CPUC PROCESS
  
  The CPUC's Division of Ratepayer Advocates (DRA) may review this application. The 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. The DRA has a multi-disciplinary staff with expertise in economics, finance, accounting and engineering. The 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 may present evidence or cross-examine witnesses during evidentiary hearings. Members of the public may attend, but not participate in, these hearings.
  
  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 application.
  
  If you would like to learn how you can participate in this proceeding or if you have comments or questions, you may contact the CPUC's Public Advisor 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 or 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 (10-08-005) to which you are referring. All comments will be circulated to the Commissioners, the assigned Administrative Law Judge and the Energy Division staff.
  
  A copy of PG&E's Default Residential Rate Program application and exhibits are also available for review at the California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.–noon.
  
  ¹ Bundled customers take electric supply service from PG&E, as well as transmission and distribution service.
  ² Direct Access customers, and customers in Community Choice Aggregation programs, take electric supply from non-PG&E suppliers. Other types of departing load customers (that is, customers that receive electric generation, transmission and distribution services from non-PG&E suppliers) will not be affected by this application.