Report Prepared by: Stephanie R. Dietz, City Manager
Title
SUBJECT: Adoption of a Resolution Opposing the Pacific Gas and Electric (PG&E) Company’s June 2021 General Rate Case Filing to the California Public Utilities Commission (CPUC) Requesting Substantial Rate Increases
REPORT IN BRIEF
Adopting a Resolution calling upon the CPUC and PG&E to cease from authorizing further electricity rate increases until equitable rate reforms and spending control measures offset measures are implemented to offset rate increases.
RECOMMENDATION
City Council - Adopt a motion - Adopting Resolution 2021-94, a Resolution of the City Council of the City of Merced, California, in opposition to Pacific Gas & Electric (PG&E) company’s June 2021 general rate care (GRC) filing to the California Public Utilities Commission (CPUC) requesting substantial rate increases.
Body
AUTHORITY
Charter of the City of Merced, Section 200.
DISCUSSION
As part of their required process, PG&E filed a request to the CPUC for substantial rate increase for the years 2023-2026 which includes an overall average rate increase of 19% over three years, and 22% specifically for residential customers. The Mayor and Council have received notification of the proposed rate plan which is excessive and has resulted in grave concerns for those they serve.
On June 30, 2021, as part of its required process, PG&E filed a request to the CPUC for substantial rate increases for the years 2023-2026, which includes an overall average rate increase of 19% over three years, and 22% specifically for residential customers. This includes an 18% year one increase.
Further research resulted in additional disconcerting trends. A recent study by the Haas Energy Institute at UC Berkeley, in conjunction with CalMatters, found that customers enrolled in the California Alternate Rates for Energy (CARE) program pay more than the average American for undiscounted energy, and PG&E customers pay close to 80% more per kilowatt-hour (kWh) than the national average. PG&E’s kWh price includes costs like a Wildfire Fund charge and electric Public Purpose Program and Nuclear Decommissioning subsidies that are disproportionately paid by San Joaquin Valley customers - which includes Merced.
Because of the climate, San Joaquin Valley customers annually buy more electricity than coastal, northern, or mountain regions, which means these customers unfairly carry an excessive and disproportionate share of the cost burden. Furthermore, the PG&E rate models that demonstrate usage of “typical” customers do not accurately reflect the Central Valley Region and are very misleading when used to exhibit the monthly fiscal impact of what the average household will pay following the increase.
At the October 4, 2021 City Council meeting, Council directed staff to bring a Resolution opposing the PG&E rate hike for consideration.
IMPACT ON CITY RESOURCES
None.
ATTACHMENTS
1. Resolution 2021-94