Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Market Daily News
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

PG&E Corporation (NYSE:PCG) Under Investigation By The California Public Utilities Commission

% of readers think this story is Fact. Add your two cents.


The California Public Utilities Commission (“CPUC”) began a formal investigation into whether the organizational culture and governance of PG&E Corporation (NYSE:PCG) and its subsidiary, Pacific Gas and Electric Company, prioritize safety and adequately direct resources to promote accountability and achieve safety goals and standards.

The CPUC directed its Safety and Enforcement Division to evaluate the Utility’s and PG&E Corporation’s organizational culture, governance, policies, practices, and accountability metrics in relation to the Utility’s record of operations, including its record of safety incidents. The CPUC authorized the SED to engage a consultant to assist in the SED’s investigation and the preparation of a report containing the SED’s assessment.

The CPUC stated that the initial phase of the proceeding was categorized as ratesetting because it will consider issues both of fact and policy and because the Utility and PG&E Corporation do not face the prospect of fines, penalties, or remedies in this phase. Upon completion of the consultant’s report, the assigned Commissioner will determine the scope of and next actions in the proceeding.

2017 General Rate Case

On September 1, 2015, the Utility filed its 2017 General Rate Case (“GRC”) application with the CPUC. In the 2017 GRC, the CPUC will determine the annual amount of base revenues (or “revenue requirements”) that the Utility will be authorized to collect from customers from 2017 through 2019 to recover its anticipated costs for electric distribution, natural gas distribution, and electric generation operations and to provide the Utility an opportunity to earn its authorized rate of return. (The Utility’s revenue requirements for other portions of its operations, such as electric transmission, natural gas transportation and storage services, and electricity and natural gas purchases, are authorized in other regulatory proceedings overseen by the CPUC or the Federal Energy Regulatory Commission.)

The Utility has requested an increase of $457 million in base revenues for 2017 as compared to authorized base revenues for 2016. The application states that over the 2017-2019 GRC period, the Utility plans to make average annual capital investments of approximately $4 billion in electric distribution, natural gas distribution and electric generation infrastructure, and to improve safety, reliability, and customer service. (These annual investments would be incremental to the Utility’s capital expenditures for electric and natural gas transmission infrastructure. PG&E Corporation and the Utility plan to provide forecasts of the Utility’s capital expenditures and rate base from 2016 through 2019 at an investor conference to be held during the week of September 7, 2015. The forecasts and other materials to be used at the conference will be furnished to the Securities and Exchange Commission in a Current Report on Form 8-K.)

The following tables compare the requested 2017 revenue requirement amounts with the comparable revenue requirements currently authorized for 2016, by both line of business and cost category:

Line of Business:
(in millions)
Amounts requested in the GRC application Amounts currently authorized for 2016 Increase compared to currently authorized amounts
Electric distribution $ 4,376 $ 4,213 $ 164
Gas distribution 1,827 1,742 85
Electric generation 2,170 1,962 208
Total revenue requirements $ 8,373 $ 7,916 $ 457
Cost Category:
(in millions)
Operations and maintenance $ 1,833 $ 1,664 $ 169
Customer services 367 319 48
Administrative and general 978 1,011 (33 )
 Less: Revenue credits (140 ) (131 ) (9 )
Franchise fees, taxes other than income, and other adjustments 185 37 148
Depreciation (including costs of asset removal), return, and income taxes 5,150 5,016 134
Total revenue requirements $ 8,373 $ 7,916 $ 457

The Utility also requested that the CPUC establish a ratemaking mechanism that would increase the Utility’s authorized revenues in 2018 and 2019, primarily to reflect increases in rate base due to capital investments in infrastructure and, to a lesser extent, anticipated increases in wages and other expenses. The Utility estimates that this mechanism would result in increases in revenue of $489 million in 2018 and an additional $390 million in 2019.

In the upcoming months, one or more CPUC administrative law judges (“ALJs”) will be assigned to oversee the GRC. The ALJs will establish a schedule for the proceeding, including public hearings, the submission of testimony by the CPUC’s Office of Ratepayer Advocates and other interested parties, and evidentiary hearings. Following the conclusion of hearings and the submission of briefs, the ALJs will issue a proposed decision for consideration by the CPUC. In its application, the Utility requested that the CPUC issue a final decision by December 31, 2016.

PG&E Corporation is a holding company. The Company’s primary operating subsidiary is Pacific Gas and Electric Company. The Utility’s operations include electric utility operations and natural gas utility operations. It operates in northern and central California. The Utility generates electricity and provides electricity transmission and distribution services throughout its service territory in northern and central California to residential, commercial, industrial and agricultural customers. The Utility provides natural gas transportation services to customers, which include small commercial and residential customers, and to non-core customers, which include industrial, commercial, and natural gas-fired electric generation facilities that are connected to the Utility’s gas system in its service territory.

You are viewing a republication of Market Daily News content. You can find full Market Daily News articles on (www.marketdailynews.com)


Source: http://marketdailynews.com/2015/09/02/pge-corporation-nysepcg-under-investigation-by-the-california-public-utilities-commission/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.