Pacific Gas And Electric Company’s Request To Increase Rates

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NOTICE OF PACIFIC GAS AND ELECTRIC COMPANY’S REQUEST TO INCREASE RATES IN ITS WILDFIRE AND GAS SAFETY COST APPLICATION (A.23-06-008)

Acronyms you need to know

PG&E: Pacific Gas and Electric Company

CPUC: California Public Utilities Commission

Why am I receiving this notice?

On June 15, 2023, PG&E filed its Wildfire and Gas Safety Cost application with the CPUC. The application includes a reasonableness review and recovery of $2.49 billion in costs related to wildfire mitigation as well as gas safety and electric modernization.

The application seeks interim rate relief of 85% ($583 million, excluding interest) to be recovered over
12 months beginning November 1, 2023. The remaining 15% ($104 million, excluding interest) would be recovered over the subsequent 12 months, with the exception of the capital expenses, which would extend through the life of the assets and be folded into the next General Rate Case.

The proposed impact to electric rates for customers receiving electric generation, transmission and distribution services from PG&E ranges from 0.3% to 2.4% in the first two years. The proposed impact to most gas rates ranges from 0.1% to 4.8% in the first two years.

Why is PG&E requesting this rate increase?

PG&E performed wildfire mitigation activities in accordance with the approved Wildfire Mitigation Plan and state policy to reduce wildfire risk in California and to improve the safety and resiliency of the electric systems. The costs presented in this application are consistent with that plan.

The gas safety costs were incurred for the safety of PG&E’s gas transmission pipes, gas storage facilities and gas system operations. The electric modernization costs are varied and include engineering planning tools and supporting infrastructure for electric vehicle charging.

How could this affect my monthly electric rates?

Many customers receive bundled electric service from PG&E, meaning they receive electric generation, transmission and distribution services. PG&E is proposing to recover electric costs over a three-year period beginning November 1, 2023.

In the first year, the bill for a typical residential customer using 500 kWh per month would increase from $177.43 to $181.39, or 2.2% compared to current bills. In the second year, the bill for a typical residential customer would increase $0.47, or 0.3% compared to current bills. In the third year, the bill for a typical residential customer would increase $0.01 compared to current bills.

Direct Access (DA) and Community Choice Aggregation (CCA) customers receive electric transmission and distribution services and select Commission-ordered services from PG&E.

If this application is approved, on average, rates for services provided by PG&E to these customers would increase by 4.3% compared to current rates in the first year, 0.8% compared to current rates in the second year and a negligible amount compared to current rates in the third year.

DA providers and CCAs set their own generation rates. Check with your DA provider or CCA to learn how this would impact your overall bill.

Another category of nonbundled customers is other Departing Load. These customers do not receive electric generation, transmission or distribution services from PG&E. On average, these customers would see an increase of 1.1% compared to present rates in the first year, 0.2% compared to present rates in the second year and a negligible amount compared to present rates in the third year.

Detailed rate information is being sent directly to customers in a bill insert. Actual impacts will vary depending on usage and are subject to CPUC regulatory approval.

How could this affect my monthly gas rates?

Bundled gas customers receive transmission, distribution and procurement services from PG&E. PG&E is proposing to recover gas costs over a three-year period beginning November 1, 2023.

Based on rates currently in effect, the bill for a typical residential customer averaging 33 therms per month would increase from $67.89 to $69.04, or 1.7%, in the first year. In the second year, the bill for a typical residential customer would increase $0.21, or 0.3% compared to current bills. In the third year, the bill for a typical residential customer would increase a negligible amount compared to current bills.

Detailed rate information is being sent directly to customers in a bill insert. Actual impacts will vary depending on usage and are subject to CPUC regulatory approval.

How does the rest of this process work?

This application will be assigned to a CPUC Administrative Law Judge who will consider proposals and evidence presented during the formal hearing process. The Administrative Law Judge will issue a proposed decision that may adopt PG&E’s application, modify it, or deny it. Any CPUC Commissioner may sponsor an alternate decision with a different outcome. The proposed decision, and any alternate decisions, will be discussed and voted upon by the CPUC Commissioners at a public CPUC Voting Meeting.

Parties to the proceeding may review PG&E’s application, including the Public Advocates Office. The Public Advocates Office is an independent consumer advocate within the CPUC that represents customers to obtain the lowest possible rate for service consistent with reliable and safe service levels. For more information about the Public Advocates Office, please call 1-415-703-1584, email: PublicAdvocatesOffice@cpuc.ca.gov or visit PublicAdvocates.cpuc.ca.gov.

Where can I get more information?

CONTACT PG&E

If you have questions about PG&E’s filing, please contact PG&E at 1-800-743-5000.
For TTY, call 1-800-652-4712.

If you would like an electronic copy of the filing and exhibits, please write to the address below:

Pacific Gas and Electric Company

Wildfire and Gas Safety Cost Application (A.23-06-008)

P.O. Box 1018

Oakland, CA 94612-9991

CONTACT CPUC

Please visit apps.cpuc.ca.gov/c/A2306008 to submit a comment about this proceeding on the CPUC Docket Card. Here you can also view documents and other public comments related to this proceeding. Your participation by providing your thoughts on PG&E’s request can help the CPUC make an informed decision.

If you have questions about CPUC processes, you may contact the CPUC’s Public Advisor’s Office at:

Email:            Public.Advisor@cpuc.ca.gov

Mail:             CPUC

Public Advisor’s Office

505 Van Ness Avenue

San Francisco, CA 94102

Call:             1-866-849-8390 (toll-free) or 1-415-703-2074

Please reference Wildfire and Gas Safety Cost Application A.23-06-008 in any communications you have with the CPUC regarding this matter.