HomeMy WebLinkAboutAgenda Report - September 18, 1985PUC APPLICATIONS
City Clerk Reimche presented a letter which had been received
from P.G.& E. Can -p ny regarding the filing of Application No.
85-08-025 in which it requests authorization to establish a rate
adjustment procedure for Unit 2 and ultimately increase electric
rates by a net amount of $380 million.
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PACIFIC 'CAS aAND ELEC'T'RIC COMP.E�.NY
JBEALE REET�?AN FRANCISCO, CALIFORNIA 94106, TELEPHONE (415) 972-2118
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0 .7 AN FRANCISCO, CALIFORNIA 94120 TELECOPIER (415) 543-7813
PETER W..HANSCHEN -CITY CLERK - -
ATTQRNEY AT LAW i'i' V ;1;' 1 1.)
August 14, 1985
TO: THE STATE, COUNTY AND CITY OFFICIALS, AND INTERESTED
PARTIES
Pacific Gas and Electric Company (PGandE) has
.filed Application No. 85-08-025 in which it requests
authority from the California Public Utilities Commission
(CPUC) to reflect Unit 2 of its Diablo Canyon Nuclear Power
Plant in rates. More specifically, the application requests
Authorization to establish a rate adjustment procedure for
Unit 2 and ultimately to increase electric rates by a net
amount of $380 million. The $380 million increase is the
difference between $694 million, which represents the full
first year cost of owning, operating, maintaining and
eventually decommissioning Unit 2 of Diablo Canyon and a
$314 million reduction in energy costs resulting from the
operation of Unit 2.
The $380 million represents the entire net rate
increase for Unit 2. However, because the Commission's
review of the costs of Diablo, Canyon may take some time,
PGandE has requested that.an interim net rate increase of
$236 million be granted at such time as Unit:2 goes into
commercial operation. The proposed` interim rate increase
adjusts electric rates by an amount equal to the estimated
energy savings resulting from the operation of -Unit 2, plus
62 percent of.the remaining revenue requirement and
concurrently reduces rates under PGandE's Energy Cost
Adjustment Clause and Annual Energy Rate by $286 million and
$28.million, respectively. Any undercollections and
overcollections will be accounted for in an adjustment
clause.
The resulting net change in jurisdictional energy
j- charges for 'the full"net revenue requirement is 6.8 percent
and 4.2 percent for the interim rate proposal. PGandE
proposes to spread this rate increase equally to all
customer classes.
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Previously, in.June 1984, PGandE filed Application
No. -84-06-.014 to reflect the costs of owning and operating
Unit I of Diablo.Canyon in rates. That application is
presently being heard by the CPUC. PGandE willmoveto
consolidate Application No. 84-06-014 and 85-08-025 at the
appropriate time.
A copy of Application No. 85-08-025 and the
related exhibits may be examined at the office of the
California Public Utilities Commission, State Building, 350
McAllister Street, San Francisco, CA 94102; at Pacific Gas
and Electric Company, 77 Beale Street, Room 3109, or c/o
Regional Managers in PGandE`s Region Headquarters in
Sacramento, San Rafael, San Francisco, Oakland, San Jose,
and Fresno. Further information, and copies of this
application and exhibits, may be obtained upon request by
writing to PGandE at 77 Beale Street, Room 3109, San
Francisco, CA 94106, Attention Mr. Peter W. Hanschen.
Any comments or inquiries, including requests to
receive notices of dates, times and places of any hearings
on this application, may be directed to.the California
Public Utilities Commission office at 350 McAllister Street,
San Francisco, CA 94102.