PG&E… investing
in POWER
PG&E’s
new CEO
Geisha Williams
In March 2017, PG&E appointed
Geisha Williams as its new CEO.
Previously, she led the company’s
Electric Division. She confirmed
PG&E’s position that climate
change is real, and preventing its
worst effects is crucial. She also
confirmed the company’s commit-
ment to making energy cleaner
by integrating more renewable
resources, building infrastructure
for electric vehicles, and
modernizing the electric grid.
Williams noted that, as
California’s experience has shown,
market-based approaches are the
most powerful tools for reducing
greenhouse gas emissions.
“If climate change is truly the
defining challenge of our time,
then we have a duty to respond
both individually and collectively,
and bring every tool to bear,
while leaving no one behind.”
Geisha Williams, CEO, PG&E
16
Our regional economy depends on the health of the power infrastructure, and
it takes a highly reliable power source to meet the combined demands of our
agriculture, commerce, industry, education, and public sectors.
PG&E is evolving its process to maintain the electric and gas infrastructure
that underpins that reliability.
To pay for maintenance and upgrades to the power infrastructure, PG&E
submits a request for funding to the CPUC every three years. The request, known
as the General Rate Case, was last submitted in 2015 for 2017-19. After public
and judicial review, the CPUC determines what revenues are needed to meet the
request. This forms the basis for the rates we pay as PG&E customers.
The way to a clean energy future for our region is through increased energy
storage as well as increased use of renewable energy sources. This requires ongoing
public support for investments in electric and gas distribution and informa-
tion technology to modernize the power grid. With this in mind, PG&E asked
the CPUC to increase gas distribution, electric distribution, and generation base
revenue requirements to $489 million and $390 million for the years 2018 and
2019 respectively.
PG&E’s total gas and electric operations capital investment for 2017 was fore-
cast at about $3 billion. For gas operations, much of the expected costs were for
upgrade or replacement of gas pipeline systems; and for electric, costs were for
upgrades of overhead equipment, substation facilities, and increased capacity.
It may surprise some people that additional costs for both gas and electric
operations were allocated to emergency preparedness and response systems—a
growing priority for many of our regional agencies and service providers.
How PG&E develops
ELECTRIC projects
PG&E identifies the needs of our local power grid, develops projects to address the
need, and submits them to the California Independent System Operator (CAISO).
• CAISO validates project needs, holds public meetings, approves projects as part
of its Annual Plan, and determines eligibility for competitive solicitation.
• Potential project sponsors submit proposals to build a new substation.
• CAISO reviews proposals and selects sponsor to build the new substation.
• PG&E assumes responsibility for connecting the substation to the grid.
• Sponsor and PG&E perform community outreach; conduct environmental,
routing and siting studies; develop project plans and alternatives; and file
application with California Public Utilities Commission (CPUC).
• CPUC begins environmental review process, conducts environmental and
technical analysis, and holds public meetings
• CPUC releases draft Environmental Document, followed by 45-day public
comment period.
• CPUC releases final Environmental Document, then reviews and announces
proposed decision, followed by public comment period.
• CPUC issues final decision and certifies Environmental Document, enabling
sponsor to begin engineering, procurement, and construction.
GILROY • MORGAN HILL • SAN MARTIN
SEPTEMBER/OCTOBER 2017
gmhtoday.com