PG&E Gas and Electric Rates to Change Modestly at Start of 2012; Utility Holds Costs Under Rate of Inflation

Pacific Gas and Electric Company

said today that with the start of the new year, residential customers will see flat to moderate increases in gas and electric rates, which cover the utility's costs of buying energy, investing in new plants and equipment, and paying for state mandates such as special programs to help income-qualified customers. PG&E's average rates for residential gas customers will dip 0.3 percent compared to January 2011 and increase 1.8 percent over December 2011. Average residential electric rates will increase 2.9 percent over January 1, 2011, or 2.4 percent over December 2011 (see table below for average estimated bill impacts). "We know our customers care more than ever about their energy bills during these difficult economic times, so we continue to focus on keeping rate increases as modest as possible while raising enough revenue to continue to provide safe and reliable service," said Tom Bottorff, Senior Vice President of Regulatory Relations for PG&E. "These revenues help us serve customers by reducing the frequency of electrical outages, improving the responsiveness of our call centers, providing more convenient services and, above all, continuing to upgrade the safety of our system."