February 3, 2004 > Electric Bills to Fall Under PG&E Plan
Electric Bills to Fall Under PG&E Plan
As part of its continuing effort to emerge from bankruptcy, Pacific Gas and Electric Company recently announced an agreement with major customer groups to lower rates by more than $850 million. If approved by the California Public Utilities Commission (CPUC), the proposed rate cut would provide customers who purchase electricity from PG&E with rate reductions ranging from 4.4 percent to over 16 percent.
With PG&E set to exit bankruptcy during the first quarter of 2004, one of the utility's top priorities is to provide significant rate relief to its electric customers - from residential customers all the way up to the largest commercial users. Under the agreement, Residential customers would see rate reductions averaging about 4.4 percent. Small business customers would see their rates reduced by about 12 percent to 14.8 cents per kilowatt-hour (kWh).
If the CPUC approves the rate agreement at its February 26th meeting, businesses would begin seeing the lower rates in their March bills. The rate reduction will be made retroactive to January 1, 2004, as provided by the bankruptcy settlement agreement.
PG&E customers could see additional electric rate reductions if federal regulators approve refunds from power generators and suppliers, and if PG&E can refinance a portion of its costs after emerging from bankruptcy under the settlement plan.