CPUC President Says Reducing PG&E Rates Is a Priority

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, Feb. 13, 2004 Share this on FacebookTweet thisEmail this to a friend

In testimony before a Senate committee on February 10, California Public Utilities Commission President Michael R. Peevey said one of the CPUCs most important tasks in 2004 will be to reduce rates for PG&E ratepayers.

We are committed to restoring the PG&E utility to financial health, to lowering rates over time, and to reinvigorating the utility's obligation to serve its customers with reliable and reasonable cost electricity, Peevey told members of the Senate Energy, Utilities and Communications Committee.

Two months ago, the CPUC approved a plan to enable PG&E to emerge from bankruptcy. The plan also paves the way for significant rate reductions for PG&Es bundled customers, effective in March or April.

On February 26, the commissioners are scheduled to vote on a rate design settlement agreement supported by CMTA and others that would reduce PG&Es averaged bundled electric rates by 8.2 percent. Business customers would receive rate reductions of 9 to 15 percent. Rates for transmission-level industrial customers (E-20 T) would be reduced by 15.2 percent.

Meanwhile, legislation implementing the finance mechanism of the plan, SB 772 (Debra Bowen, D-Marina del Rey), is currently moving through the legislative process. The measure is expected to move relatively quickly and be signed by Governor Arnold Schwarzenegger by mid-year.
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