PG&E Encourages Customers to Take Advantage of Programs to Reduce Energy Usage
October 01 2008 - 12:30PM
PR Newswire (US)
Utility Advises Customers of Higher Energy Bills SAN FRANCISCO,
Oct. 1 /PRNewswire-FirstCall/ -- Pacific Gas and Electric Company
advised customers that electricity prices will be increasing
effective today, October 1, due to higher power purchase costs
incurred in 2008. Below normal seasonal rainfall has resulted in
drought conditions that reduced the amount of hydroelectric power
available for PG&E to provide customers. This and higher
natural gas prices are the two main factors leading to higher
electricity prices. To reduce the rate impact to customers,
PG&E is proposing to collect these increased costs during the
next 15 months. Today, PG&E also provided the California Public
Utilities Commission with a preliminary estimate of the costs it
expects to incur to meet customer electricity needs in 2009. This
preliminary estimate includes a forecast of 2009 electric power
purchase costs that was originally submitted to the CPUC in the
summer of 2008, when natural gas prices were higher than current
projections. PG&E will update its forecast of 2009 electric
power purchase costs in November to reflect current natural gas
prices. The company said it is optimistic that when this update is
incorporated into the 2009 rate projection, it will potentially be
able to avoid an electric rate increase on January 1, 2009. "While
the price increase projections in January look better than we
originally thought, we want to make sure our customers know about
any possible energy price increases as soon as possible, so they
can begin to prepare," said Tom Bottorff, PG&E's senior vice
president of regulatory relations. "PG&E has taken several
measures to help protect customers from bill increases, and we urge
our customers to take advantage of the many programs and options
available to them." What Customers Can Do to Lower Their Bills --
Focus on Energy efficiency: PG&E offers more than 82 distinct
energy efficiency programs to help residential and commercial
customers reduce their natural gas and electric use. For more
information, please visit
http://www.pge.com/myhome/saveenergymoney/energysavingprograms/ --
Become a Demand Response Customer: Residential and commercial
customers can participate in tailored programs that help save money
and ease demand on the electrical grid during peak hours. More
information can be found by visiting
http://www.pge.com/demandresponse/. -- Sign-up for CARE: Eligible
low or fixed income customers can save up to 20 percent on their
energy bill using PG&E's low or fixed income discount program.
For more information, please visit http://www.pge.com/care/. The
October 1, 2008, rate increase deals with electric procurement
costs incurred in 2008, and is discussed in a filing submitted on
September 30, 2008. Increased costs of natural gas and a decrease
in hydroelectric production have driven electricity costs up by
approximately $645 million, resulting in an average bundled rate
increase of roughly 6 percent, to be collected through December
2009. The second filing, made today, is a preliminary estimate of
all proposed electric rate changes to be effective on January 1,
2009. While this preliminary estimate projects a revenue
requirement increase of $281 million, resulting in an average rate
increase starting January 1, 2009 of 2.6%, the estimate includes a
forecast of 2009 electric power procurement costs that was prepared
last summer when natural gas prices were much higher than current
forecasts. PG&E will update its forecast of 2009 electric power
procurement costs later this year and is optimistic that when this
update is incorporated into the 2009 rate projection it will be
able to avoid an electric rate increase on January 1, 2009. Under
PG&E's rate structure, the company does not earn a profit on
energy it purchases for customers; the energy is sold to customers
at the same price at which PG&E buys it from wholesale sellers.
Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation, is one of the largest combined natural gas and
electric utilities in the United States. Based in San Francisco,
with 20,000 employees, the company delivers some of the nation's
cleanest energy to 15 million people in northern and central
California. For more information, visit http://www.pge.com/about/.
DATASOURCE: Pacific Gas and Electric Company CONTACT: PG&E News
Department, +1-415-973-5930 Web site: http://www.pge.com/
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