Starting in October 2008, these factors are expected to increase electricity costs to Pacific Gas and Electric Company’s (PG&E) customers by approximately $482 million, resulting in a roughly 4.5% rate increase, to be collected over a 15-month period through December 2009.
In 2009, high demand for natural gas is expected to continue upward pressures on the price of natural gas and in turn lead to further increases in customer electricity rates. As a result, electricity costs in 2009 are anticipated to increase by approximately $340 million. This will result in a less than 2% increase over the rates projected to be in effect in October 2008.
For the typical PG&E residential customer that uses 550kWh per month, the October bill increases will be roughly $0.95 from $72.13 to $73.08. In January 2009, the bill for a typical residential customer will increase by an extra $0.35. Customers with higher monthly usage will see even greater increases to their monthly bill as a result of California’s tiered rate structure.
Helen Burt, PG&E’s senior vice president and chief customer officer, said: The combination of skyrocketing natural gas prices, increased electricity demand and lower supplies of hydroelectric power are having a significant impact on the cost of electricity. To help protect customers from these price increases, PG&E has taken concrete actions, such as diversifying our energy portfolio and partnering with our customers on energy efficiency programs.
