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 its 2020 GRC 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.
PG&E is asking for a $1.1 billion increase over currently adopted revenues for 2019 ($8.506B Adopted for 2019 to $9.6B in 2020)
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:
As noted, this rate case calls for $1.1 billion in 2020, $454 million in 2021 and $486 million in 2022, respectively, to capture inflation and other cost escalation.
If approved by the CPUC, this proposal would increase a typical residential customer bill by 6.4 percent or $10.57 per month ($8.73 for electric service and $1.84 for gas service).
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 devastating 2017 and 2018 Northern California wildfires the largest of which are still under investigation.
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.
PG&E encourages its customers to share their feedback on the proposed investments. The CPUC will determine which investments are approved, and this forms the basis for customer rate changes.
The CPUC's review of our request is an open and transparent process, with ample opportunity for public comment, expert analysis and input from independent organizations.
This summer, the CPUC is expected to conduct public hearings to solicit input from interested parties.
The CPUC may conduct evidentiary hearings in the fall. A final decision in the case is anticipated in 2020. PG&E requests the new rates be effective January 1, 2020.
Customers and other interested parties can learn more from the GRC Fact Sheet or by reading the 2020-2022 GRC application.