Although a recent rate case settlement allowed PG&E to raiseits distribution rates, the hike will not translate into higherbills for customers. The utility said its revised gas tarifffiling, which the California Public Utilities Commission yesterday,will actually reduce overall residential gas rates by 3.1%.

The new tariff will result in yearly savings of $11 for theaverage residential gas customer who pays an average of $30 permonth, the company said.

PG&E said that the increase in gas distribution rates wonthrough the rate case has been more than offset by the eliminationof elements of the fixed cost rates that were previously approvedfor recovery by the commission. As a result, PG&E said therewill be an overall decrease for customers.

“It’s a balancing act,” said Ron Low, a PG&E spokesman.”Although we raised our distribution rates, there were aspects ofour fixed cost rates that we cut. The end result was lower billsfor our customers.”

The CPUC’s decision in the rate case gave PG&E less than it hadrequested (see Daily GPI, Feb. 22), butrecognized the need for additional support to maintain service,reliability and necessary investments in the state’s energyinfrastructure, the company said. The decision gave the utility $229million annually for three years, including a 6% hike in gasdistribution rates.

In a related filing, the company submitted for CPUC approval aproposal for a one-time refund of approximately $300 million toresidential and commercial customers. This will translate to a $60rebate for the average customer.

Under CPUC rate-making regulations, gas usage each year isforecast. If usage exceeds the forecast, the result is anovercollection, the company said. While overcollected amounts arenormally returned to customers through a rate reduction, PG&Eis proposing a one-time bill credit rebate to return the moniesbecause of the size of the overcollection.

Each customer’s refund will vary depending on their actual usein the 12 months preceding the May refund, the utility said.Customers with more use than the average customer will receive morethan the average refund of $60, while those customers who used lessgas in the same period will receive less than $60. Smallercommercial gas customers will also be receiving a portion of theovercollected amount.

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