Pacific Gas and Electric (NYSE: PCG) has announced it will begin offering a new competitive electric rate aimed at promoting economic development in California. The goal of the lower rate is to make it possible for eligible employers to keep, expand or launch new operations in the state rather than locate elsewhere.
The new rate was approved Thursday by the California Public Utilities Commission (CPUC) and is designed to benefit all PG&E customers by making more revenues available to cover fixed costs, the utility stated in a release.
The new rate targets companies with power loads of at least 200 kWs that would otherwise locate operations out of state. It will provide a 12 percent rate reduction for five years for companies that require it to stay, site new operations or expand existing facilities in California. In 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 reduction of 30 percent for five years.
PG&E will file details of its new rate with the CPUC within 30 days and will post information on its website. Eligibility for the program will be determined by the Governor’s Office of Business and Economic Development.
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