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PG&E Starts Year with Higher Rates, Offset by One-Time Refund
By Dan Geis
December 2009
Beginning January 1, 2010, PG&E increased the average rate for electricity customers by 2.9%, a revenue increase of approximately $342 million for the next twelve months to the utility. Agricultural and water pumping customers will see an average increase of 3.4%.
At the beginning of each year, various policies adopted by the California Public Utilities Commission through the year are implemented, accounting for some of the increase. However, most of the aforementioned rate hike was associated with a scheduled revenue increase approved by the CPUC in 2007 as part of the previous General Rate Case.
It should be noted that PG&E provided bill credits in November and December of 2009 to customers for over-collecting revenues associated with providing generation (the commodity of electricity) throughout 2009.
Due to falling natural gas prices, the predicted cost of electricity was overestimated by $424.4 million. PG&E chose to offer this one-time refund instead of rolling the over-collected funds into rates beginning January 1, which is the usual process. This returned these overcollections to customers faster than if they were rolled into the 2010 rates. The refunds were based on 12 months of customer usage.

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Agricultural Energy Consumers Assocation
925 L Street, Suite 800 / Sacramento, CA 95814
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