scratchpad
01-04-2010, 01:18 PM
sources had been indicating that 2010 was the year but according to this source it appears as if they may hold off another year. any PG&E lineman in the know????
http://www.bakersfield.com/news/business/economy/x113237898/Maintenance-costs-force-PG-E-bills-up
Local residential customers of Pacific Gas and Electric Co. will see higher electric bills in 2010, and may soon be paying as much as $8.03 more per month, on average -- ironically, because of declining power consumption statewide.
Separately, the company asked for permission Monday to charge California ratepayers an additional $1 billion a year starting in 2011 to cover systemwide maintenance and upgrades. If approved, the request would raise the average Bakersfield customer's bill by as much as $17.44 a month on top of the other rate adjustment.
The smaller increase, related to overall decreasing power usage, was approved last week by the state Public Utilities Commission, and it reflects PG&E's need to spread fixed costs over a smaller billing base. It is set to take effect Jan. 1, though the actual impact on ratepayers could be greater or smaller depending on fresh market data expected to arrive next week.
The proposed larger increase is part of a routine review that takes place every three years. Commission hearings on the matter are expected to take place statewide before a final vote by the commission late next year.
Bakersfield would be hit particularly hard by either rate increase because of the city's high average rate of electricity consumption -- an average of 850 kilowatt hours versus 550 systemwide, Eisenhauer said. Also, California's tiered rate structure means that customers who use more electricity pay more per unit, as a way of encouraging conservation.
PG&E said it needs the $1 billion -- which would represent an annual budget increase of 17.5 percent -- to ensure safe and reliable service by fixing or improving things like its gas pipelines and electrical wiring.
"Much of our gas and electric systems have reached the end of their useful life," PG&E spokesman David Eisenhauer said Tuesday. He added that company profits are built into the $1 billion figure, though he said he was unaware how much of it would go to shareholders.
Eisenhauer noted that any actual rate increase approved by the commission could be lower than the $17.44 a month Bakersfield estimate because fuel procurement costs are declining. Those lower costs could lessen the total impact of the rate change on customers.
A leading consumer advocate group plans to oppose the larger rate increase.
"The problem here is that we're in a recession. Customers are tightening their belts and PG&E wants to live high off the hog regardless," said Mindy Spatt, spokeswoman for The Utility Reform Network, or TURN. She added that utilities tend to "pad" such requests, and that her group will examine the company's proposal carefully.
"There's plenty of fat that they could trim if they needed to," she said.
Eisenhauer pointed out that PG&E's proposed system improvements would create jobs.
"There's a benefit when we invest in the infrastructure," he said. "There's job creation."
PG&E rates have generally followed inflation trends, increasing an average of 2.1 percent a year since 1991, Eisenhauer said.
http://www.bakersfield.com/news/business/economy/x113237898/Maintenance-costs-force-PG-E-bills-up
Local residential customers of Pacific Gas and Electric Co. will see higher electric bills in 2010, and may soon be paying as much as $8.03 more per month, on average -- ironically, because of declining power consumption statewide.
Separately, the company asked for permission Monday to charge California ratepayers an additional $1 billion a year starting in 2011 to cover systemwide maintenance and upgrades. If approved, the request would raise the average Bakersfield customer's bill by as much as $17.44 a month on top of the other rate adjustment.
The smaller increase, related to overall decreasing power usage, was approved last week by the state Public Utilities Commission, and it reflects PG&E's need to spread fixed costs over a smaller billing base. It is set to take effect Jan. 1, though the actual impact on ratepayers could be greater or smaller depending on fresh market data expected to arrive next week.
The proposed larger increase is part of a routine review that takes place every three years. Commission hearings on the matter are expected to take place statewide before a final vote by the commission late next year.
Bakersfield would be hit particularly hard by either rate increase because of the city's high average rate of electricity consumption -- an average of 850 kilowatt hours versus 550 systemwide, Eisenhauer said. Also, California's tiered rate structure means that customers who use more electricity pay more per unit, as a way of encouraging conservation.
PG&E said it needs the $1 billion -- which would represent an annual budget increase of 17.5 percent -- to ensure safe and reliable service by fixing or improving things like its gas pipelines and electrical wiring.
"Much of our gas and electric systems have reached the end of their useful life," PG&E spokesman David Eisenhauer said Tuesday. He added that company profits are built into the $1 billion figure, though he said he was unaware how much of it would go to shareholders.
Eisenhauer noted that any actual rate increase approved by the commission could be lower than the $17.44 a month Bakersfield estimate because fuel procurement costs are declining. Those lower costs could lessen the total impact of the rate change on customers.
A leading consumer advocate group plans to oppose the larger rate increase.
"The problem here is that we're in a recession. Customers are tightening their belts and PG&E wants to live high off the hog regardless," said Mindy Spatt, spokeswoman for The Utility Reform Network, or TURN. She added that utilities tend to "pad" such requests, and that her group will examine the company's proposal carefully.
"There's plenty of fat that they could trim if they needed to," she said.
Eisenhauer pointed out that PG&E's proposed system improvements would create jobs.
"There's a benefit when we invest in the infrastructure," he said. "There's job creation."
PG&E rates have generally followed inflation trends, increasing an average of 2.1 percent a year since 1991, Eisenhauer said.