HomeMy WebLinkAboutAgenda Report - February 17, 1999 G-04CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Notice Of Application From Pacific Gas & Electric Company For Increases In Electric
Revenues And Gas Rates
MEETING DATE: February 17, 1999
PREPARED BY: City Clerk
RECOMMENDED ACTION: Information only, no action required.
BACKGROUND INFORMATION: The City Clerk's Office has received a notice of application from Pacific Gas
& Electric Company for increases in electric revenues and gas rates (Exhibit
A). This is information only, no Council action is required.
FUNDING: None
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Alice M. Rei the
City Clerk
APPROVED:
H. Don Flynn -- City Manager
Pacific Gas and
Electric Company
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January 25, 1999
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JEXH A
Robert B. McLennan 77 Beale Sheet
Attorney at Law San Francisco. CA
Marling Address
PO Bow 7442
San Francisco. CA 94120
TO STATE, COUNTY AND CITY OFFICIALS
NOTICE OF APPLICATION FOR INCREASES
IN ELECTRIC REVENUES AND GAS RATES
415.973.2069
Telecoprer 415.543.7813
Telecopier 415.973 9271
Pacific Gas and Electric Company (PG&E) filed Application No. 99-01-011 on January
7, 1999, with the California Public Utilities Commission (CPUC) to increase PG&E's
electric revenues and gas rates to allow PG&E to recover the costs of repairs of facilities
following declared disasters. If this application is approved by the CPUC, PG&E's
proposal would result in an electric revenue requirement increase of $60.1 million (0.8
percent) and a gas rate increase of $15.8 million (0.88 percent). After hearings, changes
will become effective January 1, 2000.
WHAT WE ARE REQUESTING
We are asking that, beginning January 1, 2000, we be allowed to increase our electric
revenues by $60.1 million and gas rates by $15.8 million. State law and CPUC decisions
allow utilities to request to recover the reasonable costs of restoring utility services to
customers; repairing, replacing, or restoring damaged utility facilities; and complying
with governmental agency orders following events declared disasters by state or federal
authorities.
Since mid-1991, there have been nine declared disasters affecting PG&E. In this
application, PG&E is seeking recovery of costs related to seven of the nine declared
disasters: the (1) February 1998 storms, (2) 1997 New Year's flood, (3) March 1995
storms, (4) January 1995 storms, (5) 1994 Northridge earthquake, (6) 1992 Calaveras and
Shasta County fires, and (7) 1991 Oakland/Berkeley Hills fire.
However, by law PG&E's electric rates are frozen at their current levels until March 31,
2002, or when PG&E's approved transition costs are fully recovered, whichever comes
first. Therefore, the change in electric revenues requested in this proceeding will not
change the total electric rate charged to customers until the electric rate freeze ends, but
may result in a rate increase after the freeze ends. If the CPUC approves our application
TO STATE, COUNTY
January 25, 1999
Page 2
AND CITY OFFICIALS
and the resulting change is an increase, then there will be less revenue left over to cover
transition costs.
THE EFFECT ON CUSTOMERS
The effect of the application, including interest, results in a net electric revenue
requirement increase of $60.1 million (0.8 percent) and a $15.8 million (0.88 percent)
increase compared to present gas revenues. However, as described above, state law
requires that the electric revenue requirement increase will not result in an increase in
your rates at this time, but may increase rates in the future.
Here is how the application would affect each gas customer class:
Gas Customer Class Revenue Increase (thousands) % Increase
Residential 59.792 0.84%
Large Commercial $ 338 1.54%
Industrial $1.116 1.11%
Utility Electric Generation $ 537. 0.840/9
Wholesale $ 22 1.60%
Total Revenue Change $15,751 0.88%
For average bundled monthly residential gas use of 50 therms, the monthly bill would
increase by $0.24, from $28.77 to $29.02. This example does not include any change in
current rates due to pending CPUC cases such as PG&E's 1999 General Rate Case.
Individual bills would vary from this example, depending on how much energy is used.
PUBLIC HEARINGS
Before acting on this application, the CPUC will hold evidentiary hearings. At these
hearings, which are open to the public, the CPUC will receive the testimony of PG&E,
the CPUC's Office of Ratepayer Advocates, and other interested parties. Participants at
these hearings may offer proposals that differ from those of PG&E. In addition, during
the proceedings, updated information may be introduced that could change the amount of
the rate changes requested. After considering all proposals presented during the hearing
process, the CPUC will issue a decision. Rates adopted by the CPUC may differ from
those requested by PG&E, and may result in an increase or decrease in individual rates.
If you want to participate in this proceeding and need advice or more information,
including information on the hearings, or wish to obtain copies of the Office of Ratepayer
Advocates' rate proposals when they are available, you may write to:
TO STATE, COUNTY AND CITY OFFICIALS
January 25, 1999
Page 3
The Public Advisor
California Public Utilities Commission
505 Van Ness Avenue, Room 5303
San Francisco, CA 94102
or via electronic mail to: public.advisor@cpuc.ca.gov
Mention you are writing about PG&E's Application No. 99-01-011 and indicate if you
would like a written response, otherwise no reply will be sent. Your letter will be sent to
the Commissioners and become part of the formal correspondence file for this
application.
FOR FURTHER INFORMATION
You can get more information from PG&E by writing to: PG&E, P.O. Box 7442, San
Francisco, CA 94120, Attention: CSMA Application. You may review a copy of our
application and related exhibits at our corporate headquarters (77 Beale Street, Room
3120, San Francisco, CA 94105), at any of our division offices, or at 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.
PACIFIC GAS AND ELECTRIC COMPANY
By: 4KI N, ;�,
ROBERT B. McLENNAN