HomeMy WebLinkAboutAgenda Report - June 2, 1999 G-04bAGENDA TITLE: Notice Of Application From Pacific Gas & Electric (PG&E) Company For A Gas Rate
Decrease And Electric Revenue Increase: Annual Earnings Assessment Proceeding
MEETING DATE: June 2, 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 (PG&E) Company for a gas rate decrease and electric revenue
increase: annual earnings assessment proceeding (Exhibit A). This is
information only, no Council action is required.
FUNDING: None
Alice M. Reimche
City Clerk
APPROVED:
H. D' on Flynn -- City Manager,
.19 Pacific Gas and
secbic Company
i1 Yr,,,
May 13, 1999
To State, County and City Officials:
Robert B. McLennan
Attorney at taw
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EXHIBIT A
Notice of Application for a Gas Rate Decrease and
Electric Revenue Increase: Annual Earnings
Assessment Proceeding
On May 3, 1999, Pacific Gas and Electric Company (PG&E) filed
Application 99-05-007 with the California Public Utilities Commission
(CPUC) which asks for changes in PG&E's electric and natural gas
revenues. The application requests the CPUC to authorize a net electric
revenue requirement increase of $2.4 million and a net natural gas
revenue decrease of $736 thousand, effective January 1, 2000. If this
application is approved by the CPUC, the changes would normally result
in an increase in electric rates of about 0.03 percent. However, under
state law, electric rates can not increase until 2002 or until stranded costs
are collected, whichever occurs first. Therefore, the net electric revenue
increase requested in the application will not affect electric rates during
the current electric rate freeze, but may extend the period of the rate
freeze. The gas revenue decrease asked for in the application will
decrease gas rates as soon as approved by the CPUC.
The overall net increase results from the shareholder incentives that
PG&E is eligible to receive for its energy efficiency programs over the
past five years. PG&E has several programs to encourage customers to
install energy-efficient measures and to transform energy efficiency into a
self-sustaining marketplace. The CPUC has adopted shareholder
incentive mechanisms to encourage PG&E to vigorously pursue the
CPUC's energy efficiency goals. Under the rules established by the
CPUC, PG&E is requesting shareholder incentives for energy efficiency
accomplishments in 1998, 1997 and 1994. The amount to be recovered
for these programs is offset by the expiration of the recovery of
shareholder incentives for PG&E's 1996 energy efficiency programs. If
PG&E had not earned a shareholder incentive for its 1996 programs, we
77 Beale Street
San Francisco, CA
Mailing Address
P.O. Box 7442
San Francisco, CA 94120
415-973.2069
Telecopier: 415.543.7813
Telecopiet: 415.973.9271
estimate that the electric revenue requirement would have increased by
$15.5 million and gas rates by $1.4 million. The combined effect of the
application, including interest, is a net electric revenue increase of $2.4
million (0.03 percent) and a $736 thousand (0.03 percent) decrease
compared to present gas revenues. However, as described above, state
law requires that the electric revenue increase will not change your rates
at this time.
Here is how we propose to allocate the, de-crease.to. each-gas.customer
class:
Gas Customer Class
Revenue Decrease
Decrease
Residential
-$546
-0.05%
Small Commercial
-$177
-0.05%
Large Commercial
-$ 1.3
-0.006%
Industrial
-$ 10
-0.02%
Cogeneration
-$ 0.4
-0.001%
Electric Generation
-$ 0.8
-0.001%
Wholesale
-$ 0
-0.00%
Total Revenue Change
-$736
-0.03%
EVIDENTIARY HEARINGS
Before acting on these applications, the CPUC will hold evidentiary
hearings, expected to begin within the next several months. 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. After considering these proposals, the CPUC will issue its
decision. The actual plan adopted by the CPUC may differ from what is
requested by PG&E in this application, and may result in an increase or
decrease in your individual gas rates.
If you want to participate in the hearings or send comments, if you need
advice or more information, or if you want to get copies of the Office of
Ratepayer Advocates' rate proposal when it is available, please write to:
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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 which application you are writing about (No., 99-05-007)_,and
indicate if you would like a written response, otherwise no reply will be
sent. Your letter will be sent to the Commissioners and will become part
of the formal correspondence file for the relevant application.
FOR FURTHER INFORMATION
You can get more information from PG&E by writing to: AEAP
Application, PG&E, P.O. Box 7442, San Francisco, CA 94120. You
may review a copy of the PG&E application at our corporate
headquarters (77 Beale Street, Room 3120, San Francisco, CA 94105),
any of our division offices, or at the San Francisco office of the CPUC.
Mention the name of the application about which you are inquiring.
The state, counties and municipal corporations, and other interested
parties in the above-mentioned filing can obtain a copy of Application No.
99-05-007 and related exhibits upon request to me.
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: // may /-5-1. <
ROBERT B. McLENNAN
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