1. May 20, 2011
President Michael Peevey
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
President Peevey
EXPARTE COMMUNICATION A.1003014
The Kern County Taxpayers Association implores the Commission to adopt your
Alternative Proposed Decision for PG&E GRC A.1003014, Phase II. We have actively
researched PG&E’s residential rate structure since the summer of 2009. While others
blamed the new Smart Meters for the outlandish bills many PG&E customers received,
KernTax quickly determined that PG&E’s rate structure was draconian, punitive, and
unjustified, and the culprit.
We presented the findings of our research to PG&E on February 24, 2010. Two
days later, Emergency Rate Case A.1002029 was filed. And the top tier, non-CARE rate
was reduced 20 percent, in a revenue-neutral reshuffling of the upper tier rates.
On March 2, 2010, PG&E representative, Ken Cooper told the Kern County Board
of Supervisors:
“In short, we agree with Mr. Turnipseed’s analysis of the adverse impact to
electric ratepayers in Kern County. His analysis, his numbers are correct. So, there’s no
disagreement with that analysis.”
“ In three weeks from now, PG&E is making a filing with the CPUC to propose measures
to respond to the adverse situation that Kern County customers are being impacted by
high costs and, as Mr. Turnipseed said, subsidizing other PG&E customers throughout the
state.” (This refers to GRC A.1003014)
“The combination of legislative and regulatory constraints has led to an unsustainable
and arguably punitive situation for Tier 5 customers. The Tier 5 rate is far in excess of the
cost to produce and deliver these kilowatts, and far in excess of what is necessary to
encourage conservation; again, as pointed out in his [Turnipseed’s] presentation. Such
extreme upper tier rates are difficult to justify on grounds of equity. So, we understand
it, we’re trying to do something about it with regards to approaching the CPUC for
changes in what we charge each tier, and we’re asking for rate reductions before the
summer.” (This refers to A.1002029).
Kern County Taxpayers Association 1
331 Truxtun Avenue
Bakersfield, CA 93301-5313
661.322.2973 PHONE * 661-321-9550 FAX

2. In short, AB1890, AB1x, and SB695 are legislative failures. Under SB695, PG&E’s
non-CARE, Tier 5 rates jumped from 13 percent from December 31, 2009 to March 1,
2010, 3 months.
PG&E is trying to rectify 11 years of draconian, capricious, punitive, and
economically unjustifiable rates on its non-Care upper tier ratepayers and still be within
the indefensible system set up by the California Legislature.
Please remember two facts:
First, when it is over 100 degrees in the Central Valley this summer and its is 65
degrees in cooler climates, many, many hard working families, who can not qualify for
CARE are paying four times more to try to remain cool than their CARE neighbor next
door.
Secondly, this same hardworking family has seen its cooling costs (upper tier)
increase 220 percent over the last 11 years; while the next door CARE neighbor has
paid the same rates for 20 years.
Any way you look at it, since 2000, no has cared about those non-CARE, upper
tier customers, who purchase 18 percent of PG&E’s residential sales.
The hot days of summer are quickly approaching. Please support PG&E’s
attempt to bring some sanity to their rate structure, by adopting the President’s
Alternative Proposed Decision, on May 26, so some rate relief can be given to long-
suffering non-CARE, upper tier ratepayers.
Respectfully,
/S/ Michael Turnipseed
Michael Turnipseed
Executive Director
Cc: Commissioner Ferron
Commissioner Sandoval
Commissioner Simon
A.1003014 Service List
Kern County Taxpayers Association 2
331 Truxtun Avenue
Bakersfield, CA 93301-5313
661.322.2973 PHONE * 661-321-9550 FAX