Tuesday, April 23, 2013

PG&E Electric Rate Increase To Modernize Transmission System - Effective May 1, 2013

BOMA San Francisco Members

Recently, PG&E filed Advice Letter 4212-E to implement its new electric rates effective on May 1, 2013. This rate change revises the electric transmission rates PG&E filed with the Federal Energy Regulatory Commission (FERC). Overall revenue in this advice letter will increase by approximately $233 million. Bundled and DA/CCA average electric rates will increase about 1.8% and 4.5%, respectively.

The primary drivers for the rate increase are the need to replace and modernize aging transmission infrastructure and the interconnection of new electric generation, including renewable resources. PG&E is in the midst of a multi-year effort to expand and improve its transmission system, in keeping with the FERC’s direction to improve the nation’s electric transmission infrastructure.   PG&E, along with SDG&E and SCE own most of the transmission facilities in California. As a 'transmission owner', the annual filing represents a majority of the transmission revenue requirement and is used to pay for the transmission service, which ultimately benefits electric consumers. 

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