Pacific Gas & Electric Files Revenue Requirement for Power Charge Indifference Amount

Pacific Gas & Electric has filed with the California PUC its 2013 Energy Resource Recovery Account (ERRA) and generation non-bypassable charges Forecast Application, which includes, among other things, sought revenue requirements for the Power Charge Indifference Amount (PCIA).

Specifically, PG&E sought:

• A 2013 ERRA forecast revenue requirement of $4.1 billion

• A 2013 Ongoing Competition Transition Charge (CTC) forecast revenue requirement of $221.6 million;

• A proposed PCIA forecast revenue requirement of $(10.7) million;

• A proposed Cost Allocation Mechanism (CAM) forecast revenue requirement of $106.2 million

The PCIA is applicable to departing load customers (including direct access) that are responsible for a share of the California Department of Water Resources (DWR) power contracts or new generation resource commitments, based on the specific customer's vintage.

PG&E said that the increase in bundled customer rates reflected in the application is driven, in part, by, "revisions to the calculation of the market price benchmark, used to generate the Ongoing CTC and the PCIA revenue requirements."

"The revisions to the benchmark have impacted the allocation of costs between bundled customers and departing load customers, resulting in less stranded cost allocation, which in turn results in an increase in bundled customers' rates," PG&E said.