Posted on 11/10/2002 12:14:12 PM PST by Ernest_at_the_Beach
| Press Release | Source: Pacific Gas & Electric Company |
Pacific Gas and Electric Company Files Rate Case for Distribution Of Gas and Electricity
Friday November 8, 7:14 pm ET
|
The company is not seeking a change in total electric rates at this time. The request would include a modest increase to the average natural gas bill for residential customers of $1.56 per month (4.1 percent), from $37.95 to $39.51.
The filing represents increases of $105 million for natural gas and $447 million for electric, or a total of $552 million above the current level of authorized distribution revenues.
Since 1998, generation-related costs have been addressed a separate proceeding. For this case, the CPUC has directed the company to include these costs with the distribution request. In meeting that new requirement, the company has included an additional $61 million for the operations and maintenance of the company's 6,400 MW of retained generation and for purchasing power from small, independent power producers including cogeneration and renewable resources. PG&E's retained generation includes the company's hydroelectric system, Diablo Canyon and the remaining fossil-fueled power plants.
Revenue increases are required for gas and electric distribution to meet the needs of hundreds of thousands of new customers, maintain current service levels to existing customers, and to adjust for wages and inflation. From 2000 through 2002, Pacific Gas and Electric Company invested a total of $3 billion dollars into its gas and electric distributions systems to keep the lights on and the gas flowing. In that same timeframe, the company added approximately 300,000 new customers. To meet those customers' needs, the company installed 2,500 miles of overhead electric lines, 1,800 miles of underground electric lines and 1,350 miles of gas pipeline. In 2003, the company expects to invest another $1 billion on distribution infrastructure improvements to serve customers.
The CPUC requires that a General Rate Case -- an exhaustive regulatory review of utility operations and costs -- be performed every three years. The last such GRC process for Pacific Gas and Electric Company was for 1999, and resulted in the CPUC approving a $469 million increase over 1996 levels, for an average yearly increase in base revenues of $156 million. Today's filing includes an average annual increase of approximately $175 million, similar to the rate of growth the CPUC approved in the 1999 GRC.
The filing today is also similar in size and consistent in scope with other investor owned utilities in California, including Southern California Edison, which recently submitted its request for a 2003 electric-only cost increase of $500 million above levels set four years ago.
The next steps in the GRC regulatory review process include the CPUC assigning a Commissioner and an administrative law judge to oversee the case. In addition, public hearings will allow public participation prior to the CPUC making its decision. The Commission has indicated they will issue a decision on this GRC no sooner than mid-2003. The utility will request that once approved, the distribution revenue increase would become effective as of January 2003.
For more information about Pacific Gas and Electric Company, please visit our web site, http://www.pge.com
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And PG&E will not become creditworthy until the commission sets their rates. Checkmate.
I wonder if the Cal State Democratic party hacks that are looking at how to balance next year's state budget can (as Ross Perot would say) hear the sucking sound of over a half billion dollars being drained out of the state economy and supressing economic recovery? Nah, I'll bet they can't.
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