PG&E will soon begin offering a competitive new electric rate aimed at promoting economic development by making it possible for eligible employers to keep, expand or launch new operations in California rather than leave the state. The new rate, approved Tuesday by the California Public Utilities Commission, is designed to benefit all PG&E customers by making more revenues available to cover fixed costs.
“As a major supplier to California businesses, PG&E is committed to helping create and retain jobs in our communities by offering appropriate incentives that will enhance our state's competitiveness and energize its economy,” said Chris Johns, President of PG&E. “Our new economic development rate goes hand in hand with other initiatives we have launched to boost economic vitality in the communities we serve.”
The newly approved economic development rate targets companies—with power loads of at least 200 kilowatts—that would otherwise locate operations and hire employees out of state. The rate would provide a 12 percent rate reduction for five years for those who avow that they need it to stay, site new operations, or expand existing facilities in California.
To address the more acute challenges faced by cities and counties in PG&E's service area with unemployment rates at least 25 percent higher than the state average, the utility will offer a more significant rate reduction of 30 percent for five years.
PG&E will file details of its new rate with the California Public Utilities Commission within 30 days and will post information on its website at www.pge.com/mybusiness/energysavingsrebates/economicdevelopment/services/index.shtml. Eligibility will be determined by the Governor’s Office of Business and Economic Development.