PG&E rates drop for January
The cost of heating a home is going down — but only for January.
Pacific Gas and Electric Co. announced that rates for natural gas and electricity dropped as of Tuesday, with what the company described as a "significant decline" for gas.
"PG&E's average rates for residential gas customers will dip in January almost 6 percent compared to January 2012, thanks in part to lower wholesale costs for gas," PG&E spokesman Paul Moreno said in a statment.
"However, customers should expect an increase in gas rates of about 2 percent as early as February, reflecting spending approved this month by the California Public Utilities Commission for PG&E's Pipeline Safety Enhancement Plan.
"This plan, one of the most aggressive and comprehensive gas pipeline modernization programs in the United States, will help PG&E achieve its goal of operating the safest and most reliable natural gas system in the country."
The utility company also has a request for a 15 percent hike in rates with the state agency.
With the increase, average residential electric rates will increase about 2.6 percent on average. The company said the jump reflects the higher cost of aquiring "clean, renewable energy" as required by state law.
Other factors include hikes previously approved for operating, maintaining and upgrading PG&E's electric generation and distribution systems.
"Customers will likely face another electric rate increase this May of about 2 percent to pay for additional electric transmission infrastructure to modernize California's power grid and deliver more renewable energy to customers," Moreno stated.
