Association Speaks Out on PG&E Gas Rate Increase

PG&E has proposed to increase its revenue requirement for natural gas over the next three years by over $2 billion! Association President/CEO Roger Isom (shown in picture) testified in opposition at a recent public hearing on the case before the Public Utilities Commission. These rate increases are proposed in the 2015 PG&E Gas Transmission and Storage Case (GT&S). PG&E contends this huge increase is necessary for PG&E to carry out all of the necessary pipeline enhancements and replacements in wake of the San Bruno explosions. Ratepayers are being asked to cover more than 75% of the cost with the remaining burden to be picked up by shareholders. The plan would increase rates as follows:

  • 2015: $572 million (80% increase over 2014)
  • 2016: $61 million additional (4.7% increase)
  • 2017: $168 million additional (12.5% increase)
  • Cumulative total = $2.006 billion increase!

CCGGA/WAPA joined the California League of Food Processors as the only ag organizations testifying in opposition to the proposed rate increase which would be devastating to cotton gins, walnut huller/dehydrators, pistachio plants, almond roasters and other processing plants that utilize significant amounts of natural gas. CCGGA/WAPA will be working with the Ag Energy Consumers Association (AECA) to submit formal comments in the proceeding.