PG&E Requests Cost of New Power Be Shared Among All

In its April 11 application to the California Public Utilities Commission for approval of 2,250 MW of new power plants in its territory, Pacific Gas & Electric requested that the cost of the power be spread among all ratepayers - not just PG&E ratepayers. The filing underscores what has been discussed in regulatory workshops originally proposed by Southern California Edison. An "interim" power-procurement proposal pitched by PG&E, NRG Energy, and The Utility Reform Network would dub new power plant capacity a "public good" to allow the spreading of the capacity costs to nonutility ratepayers (Circuit, Circuit March 17, 2006). The public-good concept would capture not only those in other investor-owned utilities' territory but also large energy users served by nonutilities and new municipal utilities. The rationale is that more than investor-owned utility customers benefit from new supplies because they enhance reliability. "This is an equitable proposal," PG&E maintains in its new filing. The plan is a variation on a failed cost-allocation proposal that Edison introduced last year. The utility sought regulatory approval to spread the cost of new supplies beyond its ratepayers to customers connected to the major power line serving Southern California. CPUC president Mike Peevey deemed that plan "dead on arrival" last summer.

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PG&E Requests Cost of New Power Be Shared Among All

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