ALJ/JJJ/hl2 DRAFT Agenda ID #3253
Ratesetting
2/26/2004 Item #27
Decision DRAFT DECISION OF ALJ ECONOME (Mailed February 11, 2004)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
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Order Instituting Investigation into the ratemaking implications for Pacific Gas and Electric Company (PG&E) pursuant to the Commission's Alternative Plan of Reorganization under Chapter 11 of the Bankruptcy Code for PG&E, in the United States Bankruptcy Court, Northern District of California, San Francisco Division, In re Pacific Gas and Electric Company, Case No. 01-30923 DM. (U 39 M) |
Investigation 02-04-026 (Filed April 22, 2002) |
OPINION APPROVING A RATE DESIGN SETTLEMENT LOWERING PACIFIC GAS AND ELECTRIC COMPANY'S RATES BY $799 MILLION
I. Summary
This decision adopts a Rate Design Settlement which will implement an overall rate reduction of about $799 million.1 This settlement is supported by parties representing a wide spectrum of utility, residential, governmental, commercial, agricultural, industrial, and small customer interests, including bundled, direct access (DA), and customer generation departing load. The settlement implements the rate reductions contemplated in Decision
(D.) 03-12-035, which approved a modified settlement in Pacific Gas and Electric Company's (PG&E) bankruptcy proceeding (PG&E Bankruptcy Decision).2
This decision also addresses PG&E's advice letter which it filed to implement the Rate Design Settlement.
1 The settlement agreement states a bundled service rate reduction of about $815 million for illustrative purposes. PG&E has updated this amount more accurately in its January 26, 2004 Advice Letter filing. The advice letter proposal results in an overall electric revenue reduction of $860 million ($878 million reduction for bundled service customers plus $18 million increase for direct access customers.) However, as explained in the decision, while we approve the rate decreases, we reject the increases. We also reject the $79 million revenue decrease related to the California Department of Water Resources (DWR) revenue requirement proposed in PG&E's advice letter at this time. Therefore, the overall rate decrease is $799 million. 2 We note that there are pending applications for rehearing of D.03-12-035, and today's decision neither addresses nor prejudges any of the issues raised in those rehearing applications.
