HomeMy WebLinkAboutAgenda Report - June 7, 1995 (77)OF
CITY OF LODI
COUNCIL COMMUNICATION
C4iIFOR�`P
AGENDA TITLE: Communications (May 10 through May 31, 1995)
MEETING DATE: June 7, 1995
PREPARED BY: City Clerk
RECOMMENDED ACTION: Information only.
BACKGROUND INFORMATION: The City of Lodi received Application No. 95-005-016 filed by
Pacific Gas & Electric (PG&E) with the California Public Utilities
Commission (CPUC), outlining annual cost of capital, PG&E's
cost of acquiring funds to finance company operations and capital investigations. A portion of this
application was for the cost of funding the Pipeline Expansion operations.
FUNDING: None required.
ac eline L. C�ylor
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Attachment
APPROVED:
THOMAS A. PETERSON
City Manager
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Pacific Gas and Electric Company 77 Beale Street Mark R. Huffman
San Francisco, CA Attorney at Law
415/973-7497_ ;
Telecopier 415/543-7813 _ CE V --
P.O. Box 7442 - _ Pr's
May 17, 1995 San Francisco, CA 94120 r
To State, County and City Officials:
11 "IC&S On May 8, 1995, Pacific Gas and Electric Company (PG&E) filed its
annual cost of capital application (Application No. 95-05-016)
with the California Public Utilities Commission.(CPUC). The cost
of capital proceeding evaluates PG&E's cost of acquiring funds to
finance company operations and capital investments. A portion of
this application was for the cost of funding the Pipeline
Expansion operations.
SUM14ARY OF APPLICATION
In order to meet its customer rate objectives to keep rates as
low as possible, PG&E is requesting no revenue requirement change
as a result of this application. PG&E is requesting that its
rate of return remain at the currently authorized level of 9.79
percent. This, coupled with PG&E's request to maintain its
currently authorized capital structure of 48.00 percent equity,
and the forecasted increase in its embedded cost of debt and
preferred stock for 1996, means that PG&E is requesting a slight
decrease in return on equity (ROE), to 12.07 percent from 12.10
percent.
Based on rates in effect on January 1, 1995, PG&E proposes no
change in its electric and gas rates for 1996 as a result of this
proceeding.
Pipeline Operations
PG&E is requesting a return of equity of 13.0 percent for the
Pipeline Expansion (Expansion), and an increase in rate of return
from 8.87 percent to 9.41 percent. The company also proposes to
increase the Expansion common equity by 3.0 percent, to 33.0
percent.
Pipeline customers will see no immediate increase in rates.
PG&E requests that the Commission authorize that the Expansion
cost of capital filing be made once every three years, during the
same years as the Expansion General Rate Cases are filed, and
further that the Expansion rates remain unchanged throughout the
three year cycle (from 1996 through 1998).
PG&E proposes that changes in Expansion costs as a result of this
proceeding be accumulated in the previously authorized Pipeline
Expansion Balancing Account until new Expansion rates are adopted
at the end of the interim rate period, expected in late 1996.
The recovery of this account will be decided in the Pipeline
Expansion Project Reasonableness proceeding (A.94-09-056).
Hearings
The CPUC will hold evidentiary hearings, expected to begin in
late summer. Participants.at these hearings may offer proposals
that differ from PG&E's. After considering these proposals, the
CPUC will issue a decision. The actual plan adopted by the CPUC
may differ from what is requested by PG&E, and may result in an
increase or decrease in individual rates.
If you want to participate in the hearings or need details on the
time and location, if you want to get copies of the Division of
Ratepayer Advocates' rate proposals when they are available, or
if you would like to submit written comments, please write to:
The Public Advisor, California Public Utilities Commission, 505
Van Ness Avenue, Room 5303, San Francisco, CA 94102. Mention
that you are writing about Application No. 95-05-016. Your
letter will be sent to the Commissioners and will become part of
the formal file for this application. You may also send comments
to the Public Advisor via electronic mail to:
public.advisor@cpuc.ca.gov
You can get more information from PG&E by writing to Mark
Huffman, PG&E, P.O. Box 7442, San Francisco, CA 94120. Mention
that you are writing about Application No. 95-05-016. You may
review a copy of PG&E's 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.
This notice is given in accordance with Rule 24 of the Rules of
Practice and Procedure of the California Public Utilities
Commission. k r,
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