PG&E Customers See Lower Rates on March Bills

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

Capitol Update, March 12, 2004 Share this on FacebookTweet thisEmail this to a friend

Customers of Pacific Gas & Electric are seeing lower electric rates on their March bills.

The average bundled electric rate has gone from 13.9 cents per kilowatt-hour (kWh) to 12.7 cents per kWH, an 8 percent decrease. Business customers will see rate reductions of 9 to 14 percent. Transmission-level industrial customers (E-20 T) will see a 14.8 percent reduction.

On February 26th, the California Public Utilities Commission approved a rate design settlement agreement supported by CMTA and other business groups that enables PG&E to resolve its Chapter 11 case and significantly reduces the utility's bundled electric rates.

Customers will receive a modest additional rate decrease (less than a tenth of a one cent per kWh) later this year if legislation is enacted allowing PG&E to refinance its post-bankruptcy plan through the use of a Dedicated Rate Component (DRC), which reduces the overall cost of the plan.

SB 772 (Debra Bowen, D-Marina del Rey) statutorily authorizes the issuance of financing orders to support the issuance of energy recovery bonds by the California Infrastructure and Economic Development Bank, secured by a DRC, to pay off creditor claims and other expenses relating to PG&Es bankruptcy proceeding.

The measure will be heard next in the Assembly Appropriations Committee. If approved there, it will go to the Assembly and Senate floors, respectively, for final legislative approval before going to the governor's desk.
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