Pacific Gas and Electric is proposing an economic development rate that could potentially offer a discount of up to 35 percent to large employers who use 200 kilowatts of electricity or more a month, if approved by the California Public Utilities Commission.
PG&E has a current economic development rate for large employers that has declined since it was implemented in 2005 – it is set to sunset in 2012. The new proposed rate would offer 12 percent off to companies that meet the criteria to help them stay or expand in the state rather than moving operations elsewhere. For companies in counties with an unemployment rate that is 25 percent higher than the state average, the discount could be as deep as 35 percent. The lower rate would be available for five years.
“Maybe this is a small part of the solution,” said Supervisor Anthony Botleho on April 3 at a board meeting. “We lost Milgard, who consolidated (operations) in Sacramento.”
The supervisors unanimously approved a resolution in support of the economic development rate. Botelho suggested there are several large employers in the county that could benefit from such a rate. The supervisors were asked to approve a resolution in support of PG&E’s proposed economic rate.
The rate would not likely be approved until 2013, said Wendy Sarsfield, a PG&E government relations manager.
“I would support it,” said Supervisor Margie Barrios. “We have been working really hard to have economic efforts.”
PG&E announced the effort to approve the rate on March 1.
“Affordable, reliable power is more important than ever as an enabler of business and employment development in our state,” said Tom Borthoff, a senior vice president for regulatory relations at PG&E, in a press release. “As a key contributor to California’s economy, PG&E is committed to helping create and retain jobs here by offering appropriate incentives that will enhance our state’s competitiveness and make it ‘golden’ again.”
Aside from San Benito County, 35 other agencies, including California cities and counties, have already pledged support for the program.
“We know we have been hard hit,” Sarsfield said. “This is one of the tools in the tool basket to obtain and maintain large businesses.”
