PG&E hearing to request increase rates for wildfire expenses
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NOTICE OF EVIDENTIARY HEARING FOR PACIFIC GAS AND ELECTRIC COMPANY’S
REQUEST TO INCREASE RATES FOR THE WILDFIRE EXPENSE MEMORANDUM
The California Public Utilities Commission (CPUC) is scheduled to hold an evidentiary hearing at the time and place below regarding Pacific Gas and Electric Company’s (PG&E) application A.20-02-004.
At this hearing, PG&E, consumer advocacy groups, and other parties to this proceeding testify before a CPUC Administrative Law Judge regarding PG&E’s request. The public can attend and listen to the proceeding but are not allowed to testify.
Where and when will the Evidentiary Hearing be held?
In compliance with the Governor’s directive and CPUC’s ongoing efforts to protect customers and community members, there will be no in-person physical location for the evidentiary hearing. The hearing will instead be held virtually. Please monitor the CPUC’s daily calendar (located at www.cpuc.ca.gov) for any changes relating to the evidentiary hearing.
|April 27-28, 2021|
This information will be made available on the CPUC’s website at www.cpuc.ca.gov.
Why is PG&E requesting this rate increase?
On February 7, 2020, Pacific Gas and Electric Company (PG&E) filed its Wildfire Expense Memorandum Account (WEMA) application with the CPUC. PG&E seeks recovery of certain costs recorded in the WEMA, including $498.7 million for insurance costs incurred between July 26, 2017, and December 31, 2019. These costs exceed previously authorized rates for the same period.
PG&E purchases excess liability insurance to protect against claims that may arise in connection with business operations. The program is designed to protect against significant losses, which could ultimately lead to increased rates for customers. The cost of this insurance has increased dramatically due to high wildfire liabilities in California.
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. Based on rates currently in effect, the bill for a typical residential non-CARE customer using 500 kWh per month would increase from $138.86 to $141.65, or 2.0%.
Direct Access and Community Choice Aggregation are unbundled electric service customers who only receive electric transmission and distribution services from PG&E. On average, these customers would see an increase of 2.6%.
Other Departing Load customers do not receive electric generation, transmission or distribution services from PG&E. However, these customers are required to pay certain charges by law or CPUC decisions in the form of exit fees. On average, these customers would see an increase of 0.9%.
Actual impacts will vary depending on usage.
How will the application affect gas rates?
If PG&E’s rate request is approved by the CPUC, the average monthly gas bill for a typical residential customer averaging 32 therms per month would increase from $58.10 to $60.08, or 3.4%.
Actual impacts will vary depending on usage and are subject to CPUC regulatory approval.
How does the rest of this process work?
This application has been 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 are currently reviewing PG&E’s application, including the Public Advocates Office, which 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 [email protected], or visit PublicAdvocates.cpuc.ca.gov.
Where can I get more information?
Pacific Gas and Electric Company
Wildfire Expense Memorandum Account (A.20-02-004)
P.O. Box 7442
San Francisco, CA 94120
Please visit cpuc.ca.gov/A2002004Comment to submit a comment about this proceeding on the CPUC Docket Card. Here you can 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.
Public Advisor’s Office
505 Van Ness Avenue
San Francisco, CA 94102
Email: [email protected]
Please reference Wildfire Expense Memorandum Account A.20-02-004 in any communications you have with the CPUC regarding this matter.