Review of Pacific Gas and Electric's Application to Establish a Voluntary Climate Protection Program and Tariff Option
Synapse reviewed PG&E’s application to establish a voluntary customer climate protection program. Synapse made the following determinations: 1) PG&E shareholders would likely benefit from such a program, and 2) there would be greater customer participation in the program if PG&E shareholders participated in the funding for the program. Given these findings, Synapse recommended that PG&E pay for most of the marketing and administration costs associated with the proposed program. In addition, Synapse recommended that PG&E pursue the option of making the monthly voluntary customer contributions tax deductible. As a result of Synapse’s testimony, the Commission ruled to share marketing and administration costs 50/50 between non-participant and participant ratepayers, to require PG&E shareholders to guarantee 1.5 million tons of CO2 reductions regardless of subscriptions to the program, and to adopt certain ratemaking treatment preferred by TURN. In addition, the Commission directed PG&E to further explore the tax deductibility issue. Project completed in August 2006.