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NOTICE OF PACIFIC GAS AND ELECTRIC COMPANY’S REQUEST TO DECREASE RATES FOR ITS 2023 ERRA FORECAST APPLICATION (A.22-05-029)
Acronyms you need to know
PG&E: Pacific Gas and Electric Company
CPUC: California Public Utilities Commission
Why am I receiving this notice?
On May 31, 2022, PG&E filed its Energy Resource Recovery Account (ERRA) Forecast application with the CPUC requesting approval to change rates for the following:
- Recovery of $1.95 billion in costs related to fuel needed to produce electricity as well as buying energy from third parties to serve bundled customer loads that are included in ERRA
- Setting certain charges for bundled and departing load customers for the recovery of costs of PG&E’s portfolio that are included in the Power Charge Indifference Adjustment (PCIA), Ongoing Competition Transition Charge (CTC), Cost Allocation Mechanism (CAM), and Public Purpose Program (PPP) rate
Certain costs included in this application are associated with renewable resources to further the state’s energy policy goals.
In addition, as part of this application, PG&E customers will also receive the California Climate Credit. The credit will be applied twice a year in April 2023 and October 2023 for residential and small business electric customers and once a year in April 2023 for residential gas customers.
Why is PG&E requesting this rate change?
The ERRA Forecast proceeding is the regulatory process to forecast fuel and purchased power costs which can be recovered in customer rates. While this may result in a change in rates, PG&E recovers these costs with no mark up for return or profit.
If the CPUC approves this application, PG&E will recover its costs in electric rates effective January 1, 2023.
PG&E will update its 2023 rate proposal later in the year to reflect updated market conditions. Market prices may be higher or lower than at the time the application was filed, which may result in higher or lower rates and bill impacts than those initially presented.
In addition, at the end of the year, PG&E will compare actual costs to the revenues forecasted in this application and will apply any differences towards next year’s application.
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.
The bill for a typical residential customer using 500 kWh per month would decrease from $165.35 to $154.63 or 6.5%.
Direct Access (DA) and Community Choice Aggregation (CCA) customers receive electric transmission and distribution services and select commission-ordered services from PG&E. On average, rates for services provided by PG&E to these customers would decrease 3.6% if this application is approved. 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. However, these customers are required to pay certain charges by law or CPUC decision. On average, existing Departing Load customers would see a rate decrease of 4.7%.
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?
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
2023 ERRA Forecast Application (A.22-05-029)
P.O. Box 7442
San Francisco, CA 94120
Please visit apps.cpuc.ca.gov/c/A2205029 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:
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 2023 ERRA Forecast Application A.22-05-029 in any communications you have with the CPUC regarding this matter.