The URL can be used to link to this page

Home My WebLink AboutAgenda Report - December 15, 1994CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Communications (December 15, 1994 through December 28, 1994) MEETING DATE: :Scxnu rsi Lit 1c1y5 PREPARED BY: City Clerk RECOMMENDED ACTION: Information only. BACKGROUND INFORMATION: FUNDING: None required. JMP Attachment APPROVED: The City of Lodi received Application No. 94-12-005 filed by Pacific Gas & Electric (PG&E) with the California Public Utilities Commission (CPUC) to change its base electric and gas rates, and rate for its Pipeline Expansion Project which would become effective January 1, 1996. THOMAS A. PETERSON City Manager recycled paper CC -1 Pacific Gas and Electric Company .December 16, 1994 Law Department 77 Beale Street San Francisco, CA Telecopier 415/973-5520 adds •u P.O. Box 7442 San Francisco, CA 94120 TO: THE STATE, COUNTY, AND CITY OFFICIALS NOTICE OF FILING FOR CHANGE IN ELECTRIC, GAB, AND PIPELINE EXPANSION PROJECT RATES Pacific Gas and Electric Company (PG&E) filed Application No. 94-12-005 on December 9, 1994, with the California Public Utilities Commission (CPUC) to change its base electric and gas rates, and rates for its Pipeline Expansion Project. If approved by the CPUC after hearings, changes would become effective January 1, 1996. What we are requesting We are requesting that beginning January 1, 1996, we be allowed to change our current electric and gas rates. This includes a decrease in electric revenues of $201 million, or -2.5%, a decrease in gas revenues of $119 million, or -5.6%, and a rate increase of $13 million or 12.2% over interim rates for the Pipeline Expansion Project. The rate increase requested for the Pipeline Expansion Project is for a separate gas transportation facility and would not increase the rates of residential customers. This proceeding also includes information, required by the CPUC, that could result in adoption of a $3 per month electric residential customer charge, with a commensurate reduction in energy charges. PG&E is not currently requesting such a charge itself. Why we are asking for a rate change We are asking for this change in rates to reflect our successful efforts to reduce costs while maintaining safe and reliable service to our gas and electric customers. These costs include all non -fuel operation and maintenance expenses, state and federal taxes, and depreciation. The increase over interim rates requested for the Pipeline Expansion Project is needed to offset forecasted capital, expense, and related costs for service on the Pipeline Expansion during 1996. This amount includes the most recent estimate of the project's capital costs contained in PG&E's State, County, and City Officials December 16, 1994 Page No. 2 Pipeline Expansion Project Reasonableness case (Application No. 94-09-056). The outcome of that case will be used to determine the final revenue requirement for the project. The effect on residential customers If the CPUC approves our request, residential electric bills would not change. Average residential gas bills for customers who use 30 therms of natural gas per month during summer and 100 therms per month during winter would decrease by $.89 a month in summer, from $19.32 to $18.43, and by $2.93 in winter, from $63.79 to $60.86. Individual bills would vary from this example, depending on how much energy is used. How the rate change will be apportioned According to established Commission policies, the overall rate change would be divided among customer classes as shown below. The different rates for various classes reflect the fact that the costs of serving some classes are higher than others. Electric Department Customer Class Total Revenue Change (000s) Residential $ -401 0% Agricultural 112 0% Streetlighting 10 0% Small Light and -39,405 -4.5% Power Medium Light and -48,945 -5.0% Power E-19 Class -62,112 -5.0% E-20 Class E -20T 19 0% E -20P -25,277 -5.3% E -20S -24,844 -5.1% Contracts 000 0% Standby 5 0% Total Decrease from $-200,839 -2.5% Present Rates Percent Change State, County, and City Officials December 16, 1994 Page No. 3 Customer Class Residential Small Commercial Large Commercial Industrial Cogeneration UEG Wholesale Non -Core Storage Total Decrease from Present Rates Customer Class Gas Department Total Revenue Percent Change Change (000s) $ -55,627 -4.5% - 27,528 -5.4% - 447 -0.6% - 16,864 -9.7% -5,271 -11.7% - 12,461 -16.9% -156 -4.0% - 785 -8.9% $ -119,139 -5.6% Pipeline Expansion Project G-XF, Firm G-XA, As -Available Total Increase over Authorized 1994 Revenues Total Revenue Percent Change Change (000s) $ 4,438 12.5% 8,056 12.0% $ 12,794 12.2% PG&E's application as it relates to the Pipeline Expansion Project also includes proposals on rate design, throughput, and operational issues (i.e., backbone credits, Line 400 access, direct connections, and new services). Based on the As -Available market study ordered by the CPUC in Decision 92-02-042, PG&E is proposing that it be permitted to establish a market-based monthly maximum rate for As - Available service. This application also "trues up" the Pipeline Expansion Balancing Account for the years 1993-1995 based on PG&E's current Pipeline Expansion plant estimate. To accomplish this true -up, PG&E proposes providing a direct State, County, and City Officials December 16, 1994 Page No. 4 bill or credit to each Pipeline Expansion customer's bill based on its throughput during the interim period. Public hearings Before acting on our Application, the CPUC will hold public participation hearings in the Spring of 1995 to provide customers an opportunity to express their views. The CPUC welcomes the public's participation. When dates, times, and locations of these hearings have been scheduled, we will send notices in future customer bills. Those people who cannot attend a hearing may submit written comments to the CPUC at the address listed below. All such correspondence to the CPUC should include PG&E's Application No. 94-12-005. Formal evidentiary hearings on PG&E's Application will be held in the Spring of 1995. At these hearings the CPUC will receive the testimony of PG&E, the CPUC's Division of Ratepayer Advocates, and other interested parties. Parties at these hearings may offer proposals to the CPUC which differ from those requested by PG&E. In addition, during the proceedings, updated information may be introduced that could change the amount of the revenues requested. After considering all proposals presented during the formal 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. Anyone interested in participating in this proceeding and needing advice or more information, including information on the hearings, or wishing to obtain copies of the Division of Ratepayer Advocates' rate proposals, when they are available, may write to: The Public Advisor California Public Utilities Commission 505 Van Ness Avenue, Room 5303 San Francisco, CA 94102 All such correspondence should include PG&E's Application No. 94-12-005. These letters will be sent to the Commissioners and become part of the formal correspondence file for this Application. A written response to these inquiries must be requested; otherwise no reply will be sent. State, County, and City Officials December 16, 1994 Page No. 5 For further information More information may be obtained by writing to: Pacific Gas and Electric Company P.O. Box 7442 San Francisco, CA 94120 Attention: General Rate Case, Application No. 94-12-005 A copy of our Application and related exhibits may be reviewed at PG&E's 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. The state, counties, and municipal corporations, and any other parties interested in the above-mentioned filing, can obtain a copy of Application No. 94-12-005 and related exhibits upon written request to Michelle L. Wilson, Pacific Gas and Electric Company, 77 Beale Street, Mail Code B30A, San Francisco, CA 94105. This notice is given in accordance with the requirements of the California Public Utilities Commission. PACIFIC GAS AND ELECTRIC COMPANY By L-444.C-144AtS1-?/ Mich&ale L. Wilson