July 2012 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.
- Notice of Application of Pacific Gas and Electric Company’s 2013 Energy Resource Recovery Account and Generation Non-bypassable Charges Forecast (A.12-06-002)On June 1, 2012, Pacific Gas and Electric Company (PG&E) filed application 12-06-002 with the California Public Utilities Commission (CPUC) seeking approval of a $4.412 billion electric procurement forecast, which is a $539.5 million increase compared to revenues at present rates. It is important to note that these costs represent less than half of the total costs that are reflected in customers' rates. Other costs include the day-to-day operations of the utility’s business, among other things. It is also important to note that this application is simply a forecast and is likely to change before the end of 2012. PG&E will file an updated application in November 2012.
Each year, PG&E is required to file an application that forecasts how much it will cost in the following year to obtain enough electricity to serve its customers. The CPUC reviews this forecast and then PG&E includes any approved costs in the next year's electric rates. Throughout the year, PG&E tracks actual costs and revenues, which it reports to the CPUC on a monthly basis, and any difference is allocated to customers. PG&E does not profit from the costs of procuring energy on behalf of its customers.
Will rates increase as a result of this application?
Based on the current forecast, rates would increase for most customers, although impacts for individual customers may vary.As shown in the table below, bundled customers, who receive electric generation as well as transmission and distribution service from PG&E, will see rate increases. The magnitude of the increase depends upon the outcome of Rulemaking 11-03-012; approval of PG&E's proposal to return 100 percent of the forecast auction revenue for greenhouse gas allowances in the distribution rate would reduce proposed rate changes.
If the CPUC approves this application, a typical bundled residential customer using 550 kilowatt-hours (kWh) per month will see his or her average monthly bill change from $89.73 to $92.80, an increase of $3.07 per month. A residential customer using 850 kWh per month, which is about twice the baseline allowance, will see his or her average monthly bill change from $185.92 to $198.12, an increase of $12.20 per month. Individual customer bills may differ.
PG&E's electric procurement forecast includes the ERRA revenue requirement, which applies to bundled customers only, and revenue requirements for three non-bypassable charges (NBC), which apply to direct access (DA) and community choice aggregation (CCA) customers, who purchase their energy from a non-utility supplier, as well as departing load (DL) customers, who self-generate or receive service from a publicly owned utility. For CCA and DA customers, the NBC rate component will decrease an average of 9%, with the actual change varying by customer class. For departing load customers, the NBC rate component will increase for some customers and decrease for others, depending on customer class. The total NBC revenue change for DL customers is $1,347,000, or an average 2.8% increase in the NBC rate component.
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. Please specify that you are inquiring about A.12-06-002.
You may request a copy of the application and exhibits by writing to Pacific Gas and Electric Company, 2013 ERRA Forecast, P.O. Box 7442, San Francisco, CA 94120.
THE CPUC PROCESS
The CPUC’s Division of Ratepayer Advocates (DRA) will 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.
EVIDENTIARY HEARINGS
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 CPU'’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 (12-06-002) 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 2013 ERRA Forecast application and exhibits is also available for review at the California Public Utilities Commission, 505 Van Ness Avenue, San Francisco, CA 94102, Monday–Friday, 8 a.m.–noon, and on the CPUC’s website at www.cpuc.ca.gov/puc.
