Pacific Gas Residential Rates Get a New Tier Pricing

Pacific Gas & Electric (PG&E) has done a re-org to their residential rate structure.   In an effort to show a more accurate cost of generation and encourage conservation, PG&E’s new rate structure converts generation and distribution into flat rates and adds a new set of tiered rates called the Conservation Incentive Adjustment (CIA).

The goal is to make the tiered portion of the rate structure easier to evaluate for the consumer, instead of including the tiered structure within the Generation and Distribution components.

How does that translate into dollars?  A typical customer would see a slight increase of about $1-$2, which is a far cry from the rate hike PG&E proposed to the California Pubic Utilities Commission which would raise a typical homeowner’s bill 15.6% by 2016.

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