Bankruptcy-consumed Pacific Gas and Electric Co. last week responded to state regulatory requirements by notifying the consumer branch of the California Public Utilities Commission of its intent to file a 2003 general rate case for $478 million, taking up the slack from reductions in the 4-cent/kWh surcharge that has been effective since mid-2001.

The PG&E utility specified that the general rate request, when eventually filed, will apply only to “delivering natural gas and electricity to customers’ homes and businesses.” It does not seek to recover costs incurred in the utility’s ongoing Chapter 11 bankruptcy proceedings in a San Francisco federal court or the utility reorganization plan before the court.

PG&E said its filing is “similar in size and consistent in scope” with a notice by Southern California Edison Co. for a 2003 general rate increase of about $500 million. The CPUC requires the private-sector utilities to file general rate cases every three years so their books can be reviewed in detail. PG&E’s last utility general rate case was 1999.

The state regulatory process calls for the CPUC’s Office of Ratepayer Advocates (ORA) to take 25 days to review the utility’s “notice of intent” (NOI) to make a general filing. If the ORA notes any deficiencies, the utility gets 60 days to address them. Ultimately an administrative law judge will be assigned, hearings will be held and the company hopes to have the new rates effective in January 2003.

“The request will not increase customers’ overall electric rates, which include several components, as it will be offset by anticipated reductions in electric commodity and other costs that will occur before the general rate (decision) takes effect in January 2003,” PG&E stated in a news release on its filing.

On the natural gas side, the average monthly bill would go up about $1 — to $38.94 from $37.95, the currently monthly average. In total, the filing represents proposed annual increases of $71 million for natural gas, and $407 million for electric, or a total of $478 million above current levels of authorized distribution revenues (not including the special surcharges assessed last year).

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