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PG&E Proposes Rate Hike for Ag Customers
Pacific Gas & Electric has proposed a 1.5% increase to agricultural customers as part of its General Rate Case at the CPUC. System wide, PG&E has proposed a 0.2% increase.
In the proposal from PG&E, larger customers (over 35 hp) would see significant rate increases, as high as 25%, while smaller customers (below 35 hp) would see rate decreases.
AECA will be participating in this rate case at the CPUC, and will be offering testimony in early 2005 at the Commission. The case will be litigated throughout next year, with a decision expected from the CPUC by December 2005.
PG&E also proposed to radically alter the definition of “agricultural customers”. Any account over 500 kW would no longer qualify as agricultural, and would be forced to take service on industrial or commercial rates. While current customers would be “grandfathered” into the ag class, any change in ownership would allow PG&E to move the customer to the other classifications.
Also, PG&E has proposed to move all water district and irrigation district installations to industrial rates, potentially increasing deliveries costs for any farmer who has water delivered from such a district.
One positive aspect of PG&E’s proposal is that they have agreed to remove the “ratcheted” demand provision from their rates.
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