Small businesses in Northern California will face increased costs for electricity and gas starting in 2014. PG&E is now seeking authorization from the California Public Utilities Commission (PUC) to charge ratepayers an additional $5.3 billion over the next three-year cycle for gas and electric services as compared to the existing rate structure. (When filing a rate case, PG&E projects future costs for a rate cycle, which includes a “test year” and two or three “post test years.”) If approved, PG&E’s initial estimates are that small businesses would pay increased rates of anywhere from 6.0% to 13.8% for electricity and/or gas. This is significant. Small businesses should provide input to the PUC on whether these rate changes should be authorized.
