Determining Baseline Quantities
Service territories are divided into climate zones that reflect energy consumption needs. Each zone, or "rate schedule," is allocated a daily quantity of kilowatthours (kwh) of electric power and therms of natural gas that can be billed at a lower, "baseline" rate.
The Public Utilities (PU) Code establishes baseline quantities for average residential gas and electricity use within each baseline territory. The PU code specifically requires that baseline quanties fall between 50 and 60 percent of average use for basic-electric customers in both the summer and winter and for all-electric and gas customer in the summer. The PU code also requires that baseline quantities fall between 60 to 70 percent of average use for all-electric and gas customers in the winter. PG&E's baseline summer season is April 1 - October 31 for gas and May 1 - October 31 for electric. PG&E's winter baseline season is November 1 - March 31 for gas and November 1 - April 30 for electric. To give customers the highest baseline quantities possible, PG&E sets baseline quantities at the highest end of the ranges specified by the PU Code. Daily baseline quantities are recalculated and submitted to the California Public Utilities Commission (CPUC) for approval approximately every three years, and may be phased-in on an annual basis if necessary to mitigate bill impacts.
