A.1003014 KernTAX Exparte Letter to CPUC Commissioners 110520

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A.1003014 KernTAX Exparte Letter to CPUC Commissioners 110520

  1. 1. May 20, 2011President Michael PeeveyCalifornia Public Utilities Commission505 Van Ness AvenueSan Francisco, CA 94102President PeeveyEXPARTE COMMUNICATION A.1003014 The Kern County Taxpayers Association implores the Commission to adopt yourAlternative Proposed Decision for PG&E GRC A.1003014, Phase II. We have activelyresearched PG&E’s residential rate structure since the summer of 2009. While othersblamed the new Smart Meters for the outlandish bills many PG&E customers received,KernTax quickly determined that PG&E’s rate structure was draconian, punitive, andunjustified, and the culprit. We presented the findings of our research to PG&E on February 24, 2010. Twodays later, Emergency Rate Case A.1002029 was filed. And the top tier, non-CARE ratewas reduced 20 percent, in a revenue-neutral reshuffling of the upper tier rates. On March 2, 2010, PG&E representative, Ken Cooper told the Kern County Boardof Supervisors: “In short, we agree with Mr. Turnipseed’s analysis of the adverse impact toelectric ratepayers in Kern County. His analysis, his numbers are correct. So, there’s nodisagreement with that analysis.”“ In three weeks from now, PG&E is making a filing with the CPUC to propose measuresto respond to the adverse situation that Kern County customers are being impacted byhigh costs and, as Mr. Turnipseed said, subsidizing other PG&E customers throughout thestate.” (This refers to GRC A.1003014)“The combination of legislative and regulatory constraints has led to an unsustainableand arguably punitive situation for Tier 5 customers. The Tier 5 rate is far in excess of thecost to produce and deliver these kilowatts, and far in excess of what is necessary toencourage conservation; again, as pointed out in his [Turnipseed’s] presentation. Suchextreme upper tier rates are difficult to justify on grounds of equity. So, we understandit, we’re trying to do something about it with regards to approaching the CPUC forchanges in what we charge each tier, and we’re asking for rate reductions before thesummer.” (This refers to A.1002029). Kern County Taxpayers Association 1 331 Truxtun Avenue Bakersfield, CA 93301-5313 661.322.2973 PHONE * 661-321-9550 FAX
  2. 2. In short, AB1890, AB1x, and SB695 are legislative failures. Under SB695, PG&E’snon-CARE, Tier 5 rates jumped from 13 percent from December 31, 2009 to March 1,2010, 3 months. PG&E is trying to rectify 11 years of draconian, capricious, punitive, andeconomically unjustifiable rates on its non-Care upper tier ratepayers and still be withinthe indefensible system set up by the California Legislature. Please remember two facts: First, when it is over 100 degrees in the Central Valley this summer and its is 65degrees in cooler climates, many, many hard working families, who can not qualify forCARE are paying four times more to try to remain cool than their CARE neighbor nextdoor. Secondly, this same hardworking family has seen its cooling costs (upper tier)increase 220 percent over the last 11 years; while the next door CARE neighbor haspaid the same rates for 20 years. Any way you look at it, since 2000, no has cared about those non-CARE, uppertier customers, who purchase 18 percent of PG&E’s residential sales. The hot days of summer are quickly approaching. Please support PG&E’sattempt to bring some sanity to their rate structure, by adopting the President’sAlternative Proposed Decision, on May 26, so some rate relief can be given to long-suffering non-CARE, upper tier ratepayers.Respectfully,/S/ Michael TurnipseedMichael TurnipseedExecutive DirectorCc: Commissioner Ferron Commissioner Sandoval Commissioner Simon A.1003014 Service List Kern County Taxpayers Association 2 331 Truxtun Avenue Bakersfield, CA 93301-5313 661.322.2973 PHONE * 661-321-9550 FAX

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