PG&E heat storm credit for customers, $10 million more for low-income residential customers

From the PG&E News Department

September 7, 2006

Pacific Gas and Electric Company today received approval from the California Public Utilities Commission to provide financial relief to every single electric customer with a one-time credit based on their electricity bills for the period that includes the July heat storm.

The Heat Storm Bill Credit will be 15 percent for all residential customers and 10 percent for all other customers, including agricultural, business, commercial and governmental entities. An additional $10 million will be provided to the Salvation Army, which administers Pacific Gas and Electric Company's REACH (Relief for Energy Assistance through Community Help) program, to assist low income customers with their energy bills.

"This initiative is about finding creative solutions to help those who are coping with the financial impacts of the heat storm," said Helen Burt, senior vice president and chief customer officer. "We recognized right away that some customers would be hit hard, and we quickly came up with a proposal to assist. This puts $125-150 million back in the hands of our customers in the fastest way possible. It's a perfect example of the strong customer focus we're establishing for PG&E."

Electric customers will receive the credit on their October bill based on the bill received for the summer heat storm which blanketed California from July 16-27. For some customers, the heat storm period may span two billing cycles, in which case the company will look at both bills and provide a credit based on the larger bill.

The Heat Storm Bill Credit follows the unprecedented July heat wave experienced by the entire west coast which caused a spike in electricity consumption as customers were struggling to stay comfortable in the blazing temperatures. Comparing July to June, PG&E residential customers' electricity usage increased by an average of 28 percent per customer from 537 kilowatt hours to 690 kilowatt hours as a result of the higher temperatures. The average residential bills increased an average of 44 percent, from about $79 to $114. Regions such as the Central Valley, where typical summer residential use is higher than average, saw even higher increases.

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