HomeMy WebLinkAboutAgenda Report - June 4, 1997 (50)COUNCILCITY OF LODI • •
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AGENDA TITLE: Notice from Pacific Gas and Electric of filing of Electric Rate Reduction Bonds
and 10% Rate Decrease
MEETING DATE: June 4, 1997
PREPARED BY: City Clerk
RECOMMENDED ACTION: Information Only.
BACKGROUND INFORMATION: The City Clerk's Office has received an official notice from Pacific Gas and
Electric regarding filing of Electric Rate Reduction Bonds and 10% Rate
Decrease. This notice is being provided to all state, county and local officials
for the purposes of providing information only. No Council action is required.
FUNDING: None required.
Alice M. Reimche
Acting City Clerk
APPROVED:
H. piton Flynn -- City Manager '
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Pacific Gas and Electric Company
May 16, 1997
77 Beale Street
San Fraic:sc!.. CA
415:973-7497
ie eccpier 415(543-78 i 3
If ;- Ua,C
P.O Box 7442
Sar. Fran:,ro. CA 94120
TO STATE, COUNTY AND CITY OFFICIALS:
Mark P..
AGCrney ?
Ht U�` ; ; U
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Notice of Filing for Electric Rate Reduction Bonds
and 10 -Percent Rate Decrease
As required by state law as part of electric industry restructuring, on May 6, 1997, PG&E
filed an application (A.97-05-006) requesting California Public Utilities Commission
(CPUC) approval for the issuance of up to $3.5 billion of bonds, called Rate Reduction
Bonds. These Rate Reduction Bonds are expected to result in a 10 percent reduction in
residential and eligible small commercial customers' electric rates beginning January 1,
1998, and extending as long as March 31, 2002. Other customers' rates will not be affected
by this application. Residential and small commercial customers with electric demands of
less than 20 kilowatts will be eligible for the rate reduction and responsible to repay the
bonds through separate, nonbypassable charges over the term of the bonds, which is
expected to be 10 years. As part of this financing transaction, the right to these charges will
be sold by PG&E. PG&E will collect and administer the charges, which will be a part of
your bill, on behalf of a third party.
Based on PG&E's proposal, the revenue changes for residential and eligible small
commercial customers* would be:
PROPOSED ELECTRIC REVENUE CHANGES
Annual Revenue Percent
Customer Class Change Revenue
(thousands) Change
Residential -317,301 -10%
Eligible Small Commercial -91,010 -10%
Eligible Medium Commercial -2,680 -10%
Eligible E-19 Customers -524 -10%
Other customer groups will not be affected by this proposal.
(* Eligible customers are those customers who are served on a residential schedule (E-1,
EL -1, EM, EML, ET, ETL, ES, ESL. ESR, ESRL, E-7, EL -7, E -A7, EL -A7, E-8, E-9, or
Notice to State, County and City Officials
May 16, 1997
Page 2
E -SEG), small commercial schedules A-1, AL -1, A-6, and AL -6, and medium commercial
customers served on Schedules A-10, AL -10, E -19V or EL -19V whose maximum demand
is less than 20 kW for nine billing periods during the most recent 12 months. The
applicability for the medium commercial customers shall be assessed on a one-time basis.)
How Residential Electric Costs Will Change
If the CPUC approves PG&E's request, a residential customer who uses 500 kilowatthours
of electricity will see a monthly electric bill decrease of approximately $6.08, from $60.85
to $54.77 during the summer season (May through October). Individual bills may differ
depending on energy use.
Evidentiary Hearings
The CPUC may hold hearings to receive comments from PG&E, the CPUC's Office of
Ratepayer Advocates and other interested parties. Parties at these hearings may offer
proposals that differ from ours. After considering the various proposals, the CPUC will
issue a decision and could adopt a mechanism which is different from that proposed by
PG&E.
For Further Information
You can get more information by writing to Barrett W. Young, PG&E, P.O. Box 7442, San
Francisco, CA 94120. Mention that you are writing about Application No. 97-05-006.
A copy of the Application and related exhibits may be reviewed at PG&E's corporate
headquarters (77 Beale Street, Room 3120, San Francisco, CA 94105), any of our division
offices, or the San Francisco office of the CPUC.
This notice is given in accordance with the requirements of Rule 24 of the CPUC's Rules of
Practice and Procedure.
PAC