PG&E news roundup: Discounts for energy hogs, new power plants in poor communities, and the CEO’s incredible expanding pension

Pub date November 6, 2009
WriterRebecca Bowe
SectionPolitics Blog

By Rebecca Bowe

A couple of news items related to California’s most powerful utility company caught our attention this week.

Pacific Gas & Electric Co. is planning to raise electricity rates for the customers who use less — in order to slash costs for big-time energy hogs, Mission Local reported this morning.

In an application filed with the California Public Utilities Commission (CPUC) on Oct. 14, PG&E explained that typical residential customers paying $74.14 a month would see their average monthly bill rise to $76.63, a 3.4 percent hike. Meanwhile, consumers using 1,500 kilowatt-hours per month could see their average monthly bill drop from $434.98 to $419.66, a discount of 3.5 percent. If approved, the change could take place Jan. 1, 2010 along with a bundle of other rate hikes.

It isn’t the only PG&E request to raise eyebrows recently.

A trio of environmental organizations filed formal letters of protest with the CPUC this week against PG&E’s application for two new gas-fired power plants.

The facilities, which would generate up to 1,300 megawatts of power, would be constructed in Oakley and Antioch, and PG&E expects them to be in operation by 2013 and 2014, respectively. According to the application, the utility would purchase the power generated by one facility, which would be owned and operated by Mirant. It would enter into a deal to purchase and operate the second facility once it was up and running.