SAN FRANCISCO, Dec. 27 /PRNewswire/ -- Pacific Gas and Electric Company
today notified the California Public Utilities Commission (CPUC) that average
bundled electric rates will drop by 1.1 percent on January 1, 2008 as a result
of an expected revenue decrease of approximately $105 million. Earlier in the
year, PG&E was forecasting 2008 revenue increases of more than $350 million,
as noted in a filing submitted with the CPUC on August 31. However, since that
time, the forward market prices for natural gas and electricity have dropped
considerably. Natural gas, which is the fuel for about a third of the state's
power generation, is a significant factor in establishing market prices for
electricity.
"Pacific Gas and Electric Company has a razor sharp focus on managing its
energy procurement costs to help keep rates down for customers," said Tom
Bottorff, PG&E's senior vice president of regulatory relations. "Smart energy
purchasing strategies and an improving electric market have allowed us to pass
on savings to the 15 million Californians that rely on Pacific Gas and
Electric Company for their energy needs."
PG&E's residential customers can expect a rate decrease of about 0.8
percent. While all income-qualified CARE (California Alternate Rates for
Energy) customers remain protected from any rate changes, the inclusion of
costs associated with implementing the California Solar Initiative causes a
slight increase to Tiers 1 and 2 for all non-CARE residential customers. As a
result, the average electric residential customer that uses 560 kWh per month
and currently pays $74.18 per month will see an increase of $0.32, bringing
the average bill to $74.50 per month.
A residential customer that uses an average of 850 kWh per month currently
pays $149.03 per month. In January, that customer's average monthly electric
bill will decrease by $1.54 to $147.49.
Expected Average Rates for January 1, 2008
Customer Average Current Average Percent change
Class Electric Rates projected rates (Current to 1/08)
1/08
Residential 15.02 14.90 - 0.8 %
Agriculture 12.48 13.19 5.7 %
Small Business 15.67 16.12 2.9 %
Medium Business 14.36 13.84 - 3.6 %
E-19 12.89 12.05 - 6.5 %
E-20 10.02 9.95 - 0.7 %
Average Bundled
Rate 13.88 13.72 - 1.1 %
Chart of the Expected Average Monthly Electric Bill for Residential
Customers in Territory X
Monthly Average Average Average bill Percent change
residential Current Monthly change (Current to 1/08)
customer Monthly Bill - 1/08 (Current to 1/08)
usage Bill
560 kWh $74.18 $74.50 $0.32 0.4 %
850 kWh $149.03 $147.49 - $1.54 - 1.0 %
1000 kWh $196.29 $193.25 - $3.04 - 1.5 %
1500 kWh $371.58 $362.47 - $9.11 - 2.5 %
For more information about Pacific Gas and Electric Company, please visit our
web site at http://www.pge.com
SOURCE Pacific Gas and Electric Company
News Department of Pacific Gas and Electric Company, +1-415-973-5930
