Dear Pacific Gas and Electric, your recent published request to adjust the third, fourth and fifth tier for the summer electric rates prompts me to ask questions.
First. let me lay the groundwork.
The airlines with popular routes and all seats filled, can offer lower fares.
Now let's assume the airlines adopt a rate structure similar to PG&E's. I go to the San Francisco airport to book a flight to New York. The ticket agent tells me there is a daily limit for air miles at the lowest fare and, if I want to arrive the same day, my fare will double as I fly over Denver and double again as I pass over Chicago.
The agent goes on to explain if I'm willing to lay over in Denver, I will qualify for the low fare the next day and another lay over in Chicago arriving in New York the third day with the lowest fares.
As absurd as this scenario is, this is exactly how I view your rate structure.
I remember when PG&E operated profitably by lowering rates as consumption increased and customer satisfaction was near 100 percent. I recall in the early 1970s when the rate structure changed, an enraged neighbor approaching me with his PG&E bill in his hand demanding an explanation. I could not explain it then, and I still can't.
Customer enragement continues to grow.
Now my questions. Why did PG&E veer from the accepted norms of delivering a product and services that the previously described industries are practicing successfully?
Can you deny that the delivery of electricity to the customer is less costly when your generating plants, transmission and distribution lines and transformers are approaching capacity?
What percent of customers in the Valley exceed the baseline allowance at summer's peak? Is your rate structure the result of environmentalists and political influence on the Public Utilities Commission?
Please answer these questions publicly. If the PUC prohibits you from disclosing the basis and reasoning for the rate structure, please acknowledge.
Jerry Rippee is a retired Pacific Gas and Electric employee. He lives in Merced.