April 12, 2011Assembly Member Steven Bradford,Chair of the Utilities and Commerce Committeec/o Sue.kateley@asm.ca.govChair...
of $.87 per month. Analysis has shown that for every dollar per month of customer charge,upper tier residential rates coul...
These charts are very compelling. During its recent General Rate Case, PG&E was denied itsmodest request to include a $3.0...
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Support of ab 1755 (perea)

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Letter of Assembly Utilities Committee

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Support of ab 1755 (perea)

  1. 1. April 12, 2011Assembly Member Steven Bradford,Chair of the Utilities and Commerce Committeec/o Sue.kateley@asm.ca.govChairman Bradford:RE: Support for AB 1755 (Perea)KernTaxis a member-supported, non-partisan, 501(c) 4 non-profit corporation, whose purpose isto bring about, through cooperative effort and communication, greater economy, efficiency,and effectiveness in government, basing its recommendations upon the analysis of factsobtained through research. Being non-partisan,KernTaxis politically independent, viewingmatters and policies in an objective, impartial manner, and taking positions based on theAssociation’s adopted principles. Founded in 1939, KernTax has had only one bias, the bestinterests of Kern County taxpayers.KernTax views any government collection of funds through any financial conduit to be taxation,be it a clearly identified as a tax, a fee for government service or a regulated rate structure. If itis excessive or not appropriate, KernTax must, by charter, act to educate and facilitateresolution and ensure fair representation and treatment. Kern County citizens should expect noless from KernTax and its members. We do not seek subsidies; we simply seek fair return to ourlocal citizens from all regulatory bodies and their agent for levied taxes, fees, etc. We believethat this perspective aligns closely with the underlying constitutional compact [California PublicUtilities Code Section 202] from which the CPUC derives authority as well as the goals of theIOU’s shareholders, and we hope to assist the Legislature and the CPUC in achieving a lastingresolution of the current structurally flawed residential rate system.It is the absence of just and reasonable pricing designs, and the unduly discriminatory orpreferential treatment extended to selected beneficiaries both external to the residential rateclass and within that causes KernTax to participate in this hearing before your Committee toadvocate for rational improvements to the current structurally flawed residential electricity ratesof the IOU’s.Currently, through legislative fiat and CPUC action, the state-regulate IOU’s do not have theability to have standard, uniform customer charges in their multi-tiered residential ratestructure.A standard, uniform customer charge is generally used by utility providers, as part of themonthly basic distribution charge, to partially cover costs for billing, meter reading, equipment,service line maintenance and equipment. This charge is the same no matter how muchelectricity the customer may use. When analyzing the nation’s 20 largest utilities, all of them, except PG&E and SDG&E,have customer charges that average $6.66 per month. SCE has a residential customer charge Kern County Taxpayers Association 331 Truxtun Avenue Bakersfield, CA 93301-5313(661)322-2973 1 2012/ Communications / State / Support Letter AB 1755 (Perea)
  2. 2. of $.87 per month. Analysis has shown that for every dollar per month of customer charge,upper tier residential rates could be lowered by $.01/kWh. Various customer charges areillustrated below. Top 20 Utilities by Retail Sales ($/ month) Top 20 Utilities by Retail Sales ($/month) March 1, 2010. The Average is $6.66 CLP $16.00 Alabama $14.50 Portland $10.00 Duke $9.22 Progress Florida $8.76 Arizona $8.55 PPL $8.44 PacifiCorp $8.00 Commonwealth $7.64 Virginia $7.58 Baltimore $7.50 Georgia $7.50 Ameren $7.25 Puget Sound $7.00 Progress Carolinas $6.75 Northern States $6.00 Consumers $6.00 Detroit $6.00 FPL $5.90 Reliant $5.59 So. Indiana $5.50 TXU $5.34 PECO $5.31 Entergy Gulf $4.57 PG&E $3.00 (Proposed) Public Service $2.27 Potomac $2.00 SCE $0.87 SDG&E $0.00 Constellation N/A California Utilities/Munis/IDs ($/ month) Modesto ID $12.50 Shasta Lake $12.33 Turlock ID $11.00 LADWP $10.00 Lassen $10.00 Roseville $10.00 Glendale $8.21 Riverside $8.06 Redding $7.40 SMUD $7.00 Pasadena $5.60 City of Lodi $5.00 Island Energy $4.56 Anaheim $3.06 Merced ID $3.00 PG&E $3.00 (Proposed) SCE $0.87 SDG&E $0.00 Palo Alto $0.00 Kern County Taxpayers Association 331 Truxtun Avenue Bakersfield, CA 93301-5313(661)322-2973 2 2012/ Communications / State / Support Letter AB 1755 (Perea)
  3. 3. These charts are very compelling. During its recent General Rate Case, PG&E was denied itsmodest request to include a $3.00 per month customer charge in its multi-tiered residential ratesystem. The upper-tier customers of the stated-regulated utilities have the highest electric ratesin the state and the major reason is astonishingly clear. The IOU’s do not have the ability tocharge all of their residential customers a mid-ranged customer charge, that would bringdramatic economic relief residents in warm weather climates.Please support Assemblyman Perea’s effort to address this inequity that IOU ratepayers face.Respectfully,Michael TurnipseedMichael TurnipseedExecutive DirectorCC: Assm Fletcher – nick.pappas@asm.ca.govAssm Buchanan – Christina.lokke@asm.ca.govAssm Fong – andrea.graham@asm.ca.govAssm Fuentes – isreal.salas@asm.ca.govAssm Furutani – eric.guerra@asm.ca.govAssm Gorell – mark.timmerman@asm.ca.govAssm Hernandez – crystal.quezada@asm.ca.govAssm Huffman – lawrence.cooper@asm.ca.govAssm Knight – david.orosco@asm.ca.govAssm Ma – lizette.mata@asm.ca.govAssm Nestande – rob.flanigan@asm.ca.govAssm Skinner – liz.mooney@asm.ca.govAssm Swanson – larry.broussard@asm.ca.govAssm Valadao – Christina.chiappe@asm.ca.govRepublican Consultant – daryl.thomas@asm.ca.govAssm Perea staff – celia.mata@asm.ca.gov Kern County Taxpayers Association 331 Truxtun Avenue Bakersfield, CA 93301-5313(661)322-2973 3 2012/ Communications / State / Support Letter AB 1755 (Perea)

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