Pg e s response to the summer 2006 heat storm
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PG&E’s Response to the Summer 2006 Heat Storm. LIOB Meeting September 14, 2006 Sacramento, CA. Summer 2006 Heat Storm in PG&E’s Service Territory. Weather unusually warm July 16 to July 27 131 cooling degree days over PG&E’s service territory for July 2006—old record was 111 in 1984

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Pg e s response to the summer 2006 heat storm

PG&E’s Response to the Summer 2006 Heat Storm

LIOB Meeting

September 14, 2006

Sacramento, CA


Summer 2006 heat storm in pg e s service territory
Summer 2006 Heat Storm in PG&E’s Service Territory

  • Weather unusually warm July 16 to July 27

  • 131 cooling degree days over PG&E’s service territory for July 2006—old record was 111 in 1984

  • PG&E experienced higher demand, sales and revenue

  • PG&E customers now facing the bills


Impact of heat storm on pg e care customer bills
Impact of Heat Storm on PG&E CARE Customer Bills

  • CARE customers pay for baseline use at the Tier 1 rate and all remaining use at Tier 2 rates; CARE customer bills increased as a result of greater use, as well as more use at the higher Tier 2 rate.  

  • Compared to billings for June, July bills for individually metered CARE customers increased about 33% while usage increased about 31%. 

  • These results only reflect billings for July, but bills for the July heat wave will be sent in both July and August.


Customer calls to pg e during the heat storm
Customer Calls to PG&E During the Heat Storm

Normal weekday call

volume range


Customer interest in pg e programs during the heat storm
Customer Interest in PG&E Programs During the Heat Storm

Pay Plan calls as % of total calls

Jan     Feb    Mar     Apr    May    June    July    Aug    Sept    Oct

2005        12.3    11.6    12.9    15.2    12.3    9.6      10.8    9.2     13.1     9.2

2006         N/A      9.9    11.4    11.9     9.9    10.1    10.3    12.5

Pay Plan calls increased 35% in August as compared to August of last year.

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Energy Cost Inquiry (ECI) calls as a % of total calls 

Jan     Feb    Mar     Apr    May    June    July    Aug    Sept    Oct

2005        4.6        7.5      2.6     1.4       2.0    2.4       2.0     3.6

2006        N/A       5.4      1.6     1.5       1.4    1.8       2.1     3.5

ECI calls basically stayed constant with last year.


Pg e s immediate response
PG&E’s Immediate Response

  • Payment Arrangements: relaxed pay plan policies, offering more flexible arrangements to spread payments over a longer period

  • REACH: PG&E pledged $100,000 to help customers pay their bills

  • Balanced Payment Plan: averages monthly energy costs to eliminate big swings in payments

  • Safety Net: implemented for customers with outages


Pg e s response heat storm credit
PG&E’s Response: Heat Storm Credit

  • Advice Letter 2885-E filed August 16, 2006

    • One-time electric bill credit in October, calculated as:

      • 15% of “heat storm bill” for residential customers

      • 10% of “heat storm bill” for non-residential customers

    • Additional $5 million for outreach and assistance to severely impacted customers, administered similar to REACH

    • Estimated cost: $125-150 million

  • CPUC approved September 7 (Res. E-4019) with $10 million for outreach and assistance