Rates for electricity and gas are changing for many PG&E customers, leaving some smiling and others upset due to the first wave of residential rate reform.

The rate changes, making a debut on August bills, stem from an order handed down from the California Public Utilities Commission, said PG&E spokesman Jonathan Marshall.

Previously, a 2011 law required customers in the top two usage tiers, Tiers 3 and 4, to pay "exceptionally" high rates, according to the company, which paid for "nearly all of the growing cost of maintaining, modernizing and expanding the electric system."

Now, that law has been repealed, and those customers paying top tier rates will drop by several cents per kilowatt hour--but a portion of the difference will be made up by charging the Tier 1 and 2 customers about a penny more, causing increases for low-income customers.

"It has a bigger effect on CARE customers," Marshall said, referring to a program for residents with lower incomes. "We're doing a lot of outreach to inform them. We're sending letters and postcards."

Susan Espinoza of Willow Glen received a letter from the utility company stating that her energy bill would increase 10 percent to 15 percent beginning in August. Her family, which has a fixed income, participates in the CARE program.


"We can conserve as much as we can, but there are some things we can't help," she said, adding that her adult son's health conditions require that their home remain a regular, cool temperature.

The power company estimates that a non-CARE customer who uses 400 kWh will see an increase of $5.17, while a customer using 800 kWh will have an approximate decrease of $6.52.

PG&E officials say they hope that the "modest" changes will help consumers adjust to the rate reform. Additional reforms will be considered for 2015 through 2018.

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