2014 Pacific Gas and Electric
General Rate Case

 

Background

On November 15, 2012, PG&E filed its General Rate Case (GRC) Application with the CPUC requesting to raise its customers' rates for the period from 2014 to 2016.  PG&E requests to increase its revenue requirement over present levels:

  • 2014:  $1.18 billion (or 17.8%) increase
  • 2015:  $441 million (5.6%) increase
  • 2016:  $487 million (5.9%) increase
  • Total:  Cumulative $4.9 billion increase over 3 years

PG&E's request would increase its current GRC revenue of $6.6 billion to $8.7 billion by 2016.

On January 22, 2013, the CPUC issued a Ruling setting a schedule for the proceeding.

Public Participation Hearings took place across PG&E's service territory, on its request to raise rates, from May 22 - June 25.

Evidentiary hearings took place at the CPUC July 15 - August 9, 2013.

 

ORA Policy Position

ORA recommends a revenue requirement that will allow for necessary system improvements without negative impact on operations and service and that the CPUC should reject nearly all of PG&E’s 3-year cumulative increase request. Instead, ORA recommends that it is more reasonable for the CPUC to:

  • 2014: Reduce PG&E’s current Revenue Requirement authorization by $125 million
  • 2015: Increase revenues by $169 million (or 2.6%)
  • 2016: Increase revenues by $159 million (or 2.4%)
  • ORA's Total cumulative revenue increase for 2014 - 2016 would be approximately $132 million.

ORA supports ratepayer funding for projects necessary to ensure safety and reliability. However, PG&E has demonstrated a pattern of not spending authorized funds as intended.  ORA proposes that the CPUC establish mechanisms to ensure that PG&E has a process by which to recover funds for projects which they actually complete which will prevent approval of excessive funds up front, in order to prevent customers from over-paying.

ORA additionally recommends the CPUC should direct PG&E to submit a detailed breakdown of expenditures for its public relations efforts to repair its image post-San Bruno (“Lost its Way” Campaign), in order to demonstrate that no ratepayer funds were used.

See ORA's Presentation on its Overview of PG&E's Requests vs. ORA's Recommendations.

See ORA's September 6, 2013 Opening Brief.

See ORA's September 27, 2013 Reply Brief.

See DRA’s full analysis and potential bill impacts in its May 3, 2013 Testimony.

For an overview of DRA’s analyses, see the Executive Summary.

See DRA's December 17, 2012 Protest.

 

Current Proceeding Status

A CPUC Proposed Decision is anticipated by June 2014.

See the Proceeding docket.

 

Other Resources

See Historical PG&E GRC Information: 

  • ORA Testimony for 2011 PG&E GRC.