Pacific Gas and Electric Co. announced Monday it has filed a proposed settlement agreement with state regulators regarding about $213 million of base revenues in its pending 2007 general rate case. The California Public Utilities Commission’s (CPUC’s) independent Division of Ratepayer Advocates (DRA) and the Coalition of California Utility Employees, among others, signed on to the agreement with PG&E.
The settlement agreement would extend the typical every-three-years general rate case cycle for an additional year, running through 2010. In addition, it would provide incremental revenues of $125 million annually for 2008 through 2010. The settlement, along with all other currently expected electric and natural gas revenue changes during the first quarter next year, would result in net monthly increases of 0.2% for electric and 1.6% for gas utility monthly bills.
The utility said if the CPUC approves the deal it will allow for “sufficient funding” for the upkeep, improvement and growth of the PG&E electric and natural gas utility distribution systems, along with its utility power generation facilities. “The additional revenues are not expected to result in a significant net change in customer electric and gas rates for 2007, as declines in other revenue requirements are expected to partially offset the general rate case-related adjustments,” PG&E said.
Other parties agreed to support specific elements of the settlement. They include the California Farm Bureau Federation, Modesto, Merced, and South San Joaquin Irrigation Districts, Western Manufactured Housing Communities Association, and the Disability Rights Advocates.
PG&E said the proposed settlement addresses all revenue requirement issues in its pending general rate case. The utility said it expected the CPUC to reach a decision on its general rate case in February 2007.
PG&E’s original general rate proposal called for $343 million in added annual electric distribution revenues, $36 million for gas distribution, and $16 million for electric generation. In addition, the utility requested incremental revenues of $143 million in 2008 and $180 million in 2009.
Increased revenues agreed to in the settlement will support PG&E’s previously established $2.5 billion of annual capital investments in its infrastructure — specifically some $222 million for electric distribution, $21 million for gas distribution, and $30 million for electric generation.
“The company is still in discussions with the CPUC, DRA, Farm Bureau, Greenlining, The Utility Reform Network (TURN), and a number of other parties regarding PG&E’s future delivery of local office services and is hopeful that a cooperative solution can be reached,” the utility said in its announcement, noting that until the issue is resolved for paring down the numbers, it will continue to operate 84 front counters at local offices.
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