(San Francisco) - The California Public Utilities
Commission (CPUC) today approved a decision in Pacific
Gas and Electric Company's 2003 General Rate Case proceeding,
which adopts the distribution and generation settlements
as proposed in the comprehensive settlement agreement
PG&E reached with numerous consumer groups in September
and July 2003. The rate case proceeding sets the utility's
revenue requirements for its electric generation, and
electric and natural gas distribution operations.
According to the decision, PG&E will receive an
increase in revenues of approximately $236 million for
its electric distribution operations, $52 million for
its gas distribution operations, and $38 million for
its electric generation operations. Though the company's
revenues will increase, there will be no overall increase
in retail customer electric rates this year as a result
of the decision, because those estimated changes stemming
from this decision were offset by decreases in other
areas and incorporated into the overall rate decrease
that went into effect March 1, 2004. Residential gas
customers will see an increase in the average natural
gas bill of less than $0.70 per month.
The decision provides for enhancements to PG&E's
customer service Quality Assurance Program by redefining
some existing customer service standards and adding
new standards to improve customer service. It also formalizes
PG&E's previously voluntary "Safety Net" program,
which helps customers prepare for, endure, and recover
from power outages caused by severe winter storms. Additionally,
PG&E will provide the CPUC quarterly reports regarding
these important customer service programs.
The decision becomes effective as of January 1, 2003,
and provides for yearly adjustments in revenues in 2004,
2005 and 2006 based upon growth in the Consumer Price
Index. The decision also directs PG&E to file its
next GRC beginning with test year 2007.
The settlements that serve as the basis for today's
decision included most of the actively involved participants
in the proceeding - The Utility Reform Network (TURN),
the CPUC's Office of Ratepayer Advocates (ORA), Aglet
Consumer Alliance, the Modesto Irrigation District,
the Natural Resources Defense Council, and the Agricultural
Energy Consumers Association.