Friday, November 6, 2009

No Good Deed Goes Unpunished As PG&E Seeks Higher Rates for Frugal Customers

Energy-sipping customers of PG&E may face higher rates, if the California utility has its way. One might think it would be good if people cut down on their energy usage, but PG&E apparently doesn't agree.

PG&E, has filed documents with the state asking for a 5% rate increase for its most energy-efficient customers. The increase would allow PG&E to give price cuts of 2.5 to 5.7% to their largest customers. These are those who use between 131 and 300% of the monthly baseline average.

The document says:
PG&E proposes to increase Tier 1 and Tier 2 rates on all non-CARE residential rate schedules by 5.0 percent and to decrease non-CARE Tier 3, 4, and 5 rates commensurately.
CARE refers to a financial assistance program for low-income homes and housing facilities. So this would refer to those customers not in that program. The tiers are based on usage. Tiers 1 and 2 use the least. They are as follows:

Tier # Description
Tier 1 Up to the Baseline amount
Tier 2 Electricity usage from 101% to 130% of Baseline
Tier 3 Electricity usage from 131% to 200% of Baseline
Tier 4 Electricity usage from 201% to 300% of Baseline
Tier 5 Electricity usage in excess of 300% of Baseline

PG&E saw profits rise 4.6% in the third quarter of this year. This is reminiscent of what happened to East Bay Municipal Utility Customers earlier this year. After a year of drought-induced water rationing, EBMUD said customers were saving too much, and they were losing too much money. So not only did EBMUD remove rationing, they hiked rates.
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5 comments:

"Nutball Gazette" said...

THis is another example of why Many Americans are anti- corporation
We should become a socialistic society with Very Strong Regulation only allowing Small Mom and Pop Buisness's with the rest being Gov't run.

Local Position said...

This is reminiscent of what happened to East Bay Municipal Utility Customers earlier this year..

Home Protect Home Warranty said...

This is reminiscent of what happened to East Bay Municipal Utility Customers earlier this year.

Amy Laurent said...

Whatever I said to you bigdaddy you well deserved it!! Yes cedar you are right..how are you by the way?

Watch Enthusiast said...

I felt so bad how you were suffering without your patches...