On December 20, 2019, PG&E submitted to the California Public Utilities Commission (CPUC) a settlement agreement with a number of parties, including those representing customers, labor and safety, regarding its 2020 General Rate Case (GRC), which seeks approval of revenues for the period 2020-2022. The parties agree that the CPUC should approve funding for PG&E's ongoing wildfire prevention efforts, risk monitoring, emergency response, vegetation management, hardening of the electric system and other new and enhanced measures to further reduce wildfire risk. The settlement agreement also includes funding for electric and gas distribution safety and reliability and power generation.
While the GRC settlement agreement will help fund a series of important safety investments, this agreement does not request funding for claims resulting from the 2017 and 2018 Northern California wildfires. The agreement also does not seek recovery of PG&E Corporation or Utility officer compensation.
PG&E submitted its 2020 General Rate Case (GRC) to the California Public Utilities Commission (CPUC) on December 13, 2018. This GRC proposal will help bolster wildfire prevention, risk monitoring and emergency response. It will also add new and enhanced safety measures, increase vegetation management, and harden our electric system to increase resilience and help further reduce wildfire risk. In addition, it includes plans to upgrade technology and electric and gas infrastructure to enhance our overall ability to provide safe, reliable gas and electric service.
Every three years, PG&E submits the GRC, a proposal for funding its core gas and electric operations. The CPUC conducts an open and transparent review of PG&E's proposal. This process includes public hearings across the service area, in which the Commission gathers input from the public, as well as evidentiary hearings where PG&E and all interested parties testify in a public proceeding before an Administrative Law Judge. The CPUC then issues a final decision adopting PG&E's base revenue. The CPUC's decision forms the basis for PG&E customer rate changes.
PG&E submitted a settlement agreement with a number of parties on December 20, 2019. PG&E filed its initial 2020 GRC proposal on December 13, 2018. The 2020 GRC requests the CPUC to authorize revenues for the period 2020-2022.
Faced with an extended wildfire season, our General Rate Case proposal outlines PG&E's plans to make important additional safety investments to help further reduce wildfire risk. It also includes investments to enhance gas and electric safety and reliability. PG&E's proposed grid hardening investments are driven by our priority to help continue to keep our customers and communities safe. Some of these proposed investments are additional precautionary measures implemented following the 2017 and 2018 wildfires intended to further reduce wildfire threats.
More than half of PG&E's proposed increase would be directly related to wildfire prevention, risk reduction, and additional safety enhancements. Among the important wildfire safety investments in the GRC proposal are the following components of PG&E's expanded Community Wildfire Safety Program:
While the GRC proposal will help fund a series of important additional safety investments, this proposal does not request funding for potential claims resulting from the 2017 and 2018 Northern California wildfires.
The proposal also does not seek recovery of PG&E Corporation or Utility officer compensation.
This GRC does not include gas transmission or electric transmission, public purpose programs like energy efficiency, or the actual commodity cost of gas and electricity.
If the CPUC approves the settlement agreement, the average monthly bill for a typical residential electric and gas customer would increase by $5.69 a month, or 3.4 percent. This includes $4.90 for electric and $0.79 for gas service. The resulting rate change would occur in 2020 following the CPUC’s decision and revise rates through 2022.
PG&E's commitment is to keep customer costs as low as possible while meeting our responsibilities to safely serve customers, even as our changing climate presents significant new challenges and risks.
Other parties will have an opportunity to provide feedback. The settlement agreement will be reviewed by the assigned administrative law judges, who will issue a proposed decision for Commissioners to vote on in 2020. PG&E hopes for a decision to be approved in the first half of the year to help provide revenue certainty as PG&E works to exit the Chapter 11 process by the state's statutory deadline under Assembly Bill 1054 June 2020.
Customers and other interested parties can learn more from the GRC Fact Sheet or by reading the 2020-2022 GRC application.