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PG&E’s Response to the Summer 2006 Heat Storm

PG&E’s Response to the Summer 2006 Heat Storm. LIOB Meeting September 14, 2006 Sacramento, CA. Summer 2006 Heat Storm in PG&E’s Service Territory. Weather unusually warm July 16 to July 27 131 cooling degree days over PG&E’s service territory for July 2006—old record was 111 in 1984

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PG&E’s Response to the Summer 2006 Heat Storm

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  1. PG&E’s Response to the Summer 2006 Heat Storm LIOB Meeting September 14, 2006 Sacramento, CA

  2. Summer 2006 Heat Storm in PG&E’s Service Territory • Weather unusually warm July 16 to July 27 • 131 cooling degree days over PG&E’s service territory for July 2006—old record was 111 in 1984 • PG&E experienced higher demand, sales and revenue • PG&E customers now facing the bills

  3. Impact of Heat Storm on PG&E CARE Customer Bills • CARE customers pay for baseline use at the Tier 1 rate and all remaining use at Tier 2 rates; CARE customer bills increased as a result of greater use, as well as more use at the higher Tier 2 rate.   • Compared to billings for June, July bills for individually metered CARE customers increased about 33% while usage increased about 31%.  • These results only reflect billings for July, but bills for the July heat wave will be sent in both July and August.

  4. Customer Calls to PG&E During the Heat Storm Normal weekday call volume range

  5. Customer Interest in PG&E Programs During the Heat Storm Pay Plan calls as % of total calls Jan     Feb    Mar     Apr    May    June    July    Aug    Sept    Oct 2005        12.3    11.6    12.9    15.2    12.3    9.6      10.8    9.2     13.1     9.2 2006         N/A      9.9    11.4    11.9     9.9    10.1    10.3    12.5 Pay Plan calls increased 35% in August as compared to August of last year. --------------------------------------------------------------------------------------- Energy Cost Inquiry (ECI) calls as a % of total calls  Jan     Feb    Mar     Apr    May    June    July    Aug    Sept    Oct 2005        4.6        7.5      2.6     1.4       2.0    2.4       2.0     3.6 2006        N/A       5.4      1.6     1.5       1.4    1.8       2.1     3.5 ECI calls basically stayed constant with last year.

  6. PG&E’s Immediate Response • Payment Arrangements: relaxed pay plan policies, offering more flexible arrangements to spread payments over a longer period • REACH: PG&E pledged $100,000 to help customers pay their bills • Balanced Payment Plan: averages monthly energy costs to eliminate big swings in payments • Safety Net: implemented for customers with outages

  7. PG&E’s Response: Heat Storm Credit • Advice Letter 2885-E filed August 16, 2006 • One-time electric bill credit in October, calculated as: • 15% of “heat storm bill” for residential customers • 10% of “heat storm bill” for non-residential customers • Additional $5 million for outreach and assistance to severely impacted customers, administered similar to REACH • Estimated cost: $125-150 million • CPUC approved September 7 (Res. E-4019) with $10 million for outreach and assistance

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