Safety Concerns To Play Large Role In Future Utility Rates
SAN FRANCISCO (KCBS)— The California Public Utilities Commission hosted a daylong workshop Wednesday at its San Francisco headquarters on factoring safety into the rate-making process.
PG&E plans to present state regulators this summer with its general rate case, which is its forecast of costs needed to operate in the coming years.
The workshop comes in the wake of the San Bruno disaster in which a deadly natural gas pipeline exploded.
KCBS' Anna Duckworth Reports:
Commission President Michael Peevey said often times we don't want to spend the kind of money on safety that has to be spent on it.
Steve Frank with PG&E's law department said the utility plans to submit its general rate case for 2014 to 2017 in July.
"We feel a need to address these concepts and engage in this qualitative discussion now to make sure that our funding accurately and appropriately addresses these safety and reliability components," Frank said delivering a statement.
"We have to talk about the regulatory process," said Mark Joseph, one of the Coalition of California Utility Employees. "As long as you try to do this as tweaking the rate case, you will fail."
Joseph said a safety plan should be required first, otherwise there's no assurance money given will be spent the right way.
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