PG&E 2014 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2014 PG&E annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

12
Costs Associated with Public Purpose and Customer Programs
The CPUC authorizes the Utility to recover the costs of various public purpose and other customer programs through
the collection of rates from most Utility customers. These programs relate to energy efficiency, demand response, distributed
generation, energy research and development, and other matters. Additionally, the CPUC has authorized the Utility to provide a
discount rate for low-income customers, known as California Alternate Rates for Energy (“CARE”), which is subsidized by the
Utility’s other customers.
Nuclear Decommissioning Costs
The Utility’s nuclear power facilities consist of two units at Diablo Canyon and the retired facility at Humboldt Bay.
Nuclear decommissioning requires the safe removal of nuclear facilities from service and the reduction of residual radioactivity to
a level that permits termination of the NRC license and release of the property for unrestricted use. The Utility files an application
with the CPUC every three years requesting approval of the Utility’s estimated decommissioning costs and authorization to recover
the estimated costs through rates. Nuclear decommissioning charges collected through rates are held in nuclear decommissioning
trusts to be used for the eventual decommissioning of each nuclear unit.
Electric Utility Operations
The Utility generates electricity and provides electricity transmission and distribution services throughout its service
territory in northern and central California to residential, commercial, industrial, and agricultural customers. The Utility provides
“bundled” services (i.e., electricity, transmission and distribution services) to most customers in its service territory. Customers
also can obtain electricity from alternative providers such as municipalities or CCAs, as well as from self-generation resources,
such as rooftop solar installations.
During 2014, the Utility continued to make improvements to its electric transmission and distribution systems to
accommodate the integration of new renewable energy resources, distributed generation resources, and energy storage facilities,
and to help create a platform for the development of new Smart Grid technologies. The Utility plans to continue making similar
improvements in 2015. In December 2014, the CPUC issued a decision that permits the California investor-owned electric utilities
to own EV retail charging equipment in their respective service territories to help meet the state’s goal of reducing GHG emissions
by promoting cleaner transportation. On February 9, 2015, the Utility filed an application to request that the CPUC approve the
Utility’s proposal to develop, maintain, and operate an EV-charging infrastructure in its service territory. (For more information
about the Utility’s application, see “Ratemaking And Other Regulatory Proceedings” in Item 7. MD&A.)
Electricity Resources
The Utility is required to maintain physical generating capacity adequate to meet its customers’ demand for electricity
(“load”), including peak demand and planning and operating reserves, deliverable to the locations and at times as may be necessary
to provide reliable electric service. The Utility is required to dispatch, or schedule all of the electricity resources within its portfolio
in the most cost-effective way.