PG&E Competes with Irrigation Districts on Noncommodity Costs

Pacific Gas & Electric can now offer cut-rate prices to customers who might otherwise choose irrigation districts as their providers, but the latter are not too worried. PG&E is not allowed to discount the commodity of electricity, nor surcharges. Other bundled costs, however, are up for negotiation?as long as a sale does not raise rates for other utility consumers. Customers must use in excess of 20 kW to get the sale prices. ?We don?t think it will have a material impact on competition with PG&E because we compete on more than just price,? said Garith Krause, Merced Irrigation District assistant general manager. Since AB 2638 was signed into law three years ago, PG&E has been allowed to compete, and irrigation districts have opposed the utility only on implementation terms in overlapping territories, Krause added. The California Public Utilities Commission redefined the applicable rate in PG&E?s tariff August 21, 2003. Irrigation districts such as Merced, Turlock, and Modesto are eager to snag PG&E customers, whether they are existing or new. In Merced?s case, the irrigation district is focusing on new residential developers for its competitive hook-ups. ?Less than one-third of our new customers are prior PG&E customers,? said Krause. CPUC Resolution E-3801

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PG&E Competes with Irrigation Districts on Noncommodity Costs

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