The Trades Journal
Gasoline Isn't the Only Energy Going Up
Pacific Gas & Electric pushes for price increases.
Pacific Gas and Electric Co. wants to dig deeper in your pockets again. PG&E requested the California Public Utilities Commission to raise electricity rates by 6.5 percent to cover the soaring cost of natural gas, which fuels most of California's electric power plants. If approved by the California Public Utilities Commission, the increase would come in two steps.
Electricity rates for all customers would rise by an average of 4.5 percent in October and an additional 2 percent in January. PG&E has different rates for different types of customers, and some would see a larger increase than others. The monthly electric bill for a typical home would rise a total of $1.30, to reach $73.43.
The commission is expected to vote on PG&E's request by Aug. 21.
PG&E also has a standing request which is still pending for another rate increase. In May, for example, PG&E asked state regulators to raise rates by $2.3 billion, spread over six years, to pay for improvements to the company's electrical grid.
These rate increases are for electricity, however, natural gas prices are also rising. Natural gas prices peaked earlier this year had peaked at around $12.44 per BTU, but have come down to around $8.50/BTU this week. The problem is not just the absolute cost but the sheer volatility in the price of natural gas. Gas has actually come down recently but is up compared to last years heating season.
Residential heating oil prices during the upcoming heating season (October though March) are projected to average $4.34 per gallon compared with $3.31 during the last heating season, an increase of about 31 percent. Residential natural gas prices over the same period are projected to average $15.58 per Mcf compared with $12.72 per Mcf, during the last heating season, an increase of about 22 percent.
What this all means to the consumer remains to be seen. PG&E customers may have a better indication after the PUC rules on the request. Either way, consumers would be wise to look for ways to reduce their energy costs in their homes.
Pacific Gas & Electric pushes for price increases.
Pacific Gas and Electric Co. wants to dig deeper in your pockets again. PG&E requested the California Public Utilities Commission to raise electricity rates by 6.5 percent to cover the soaring cost of natural gas, which fuels most of California's electric power plants. If approved by the California Public Utilities Commission, the increase would come in two steps.
Electricity rates for all customers would rise by an average of 4.5 percent in October and an additional 2 percent in January. PG&E has different rates for different types of customers, and some would see a larger increase than others. The monthly electric bill for a typical home would rise a total of $1.30, to reach $73.43.
The commission is expected to vote on PG&E's request by Aug. 21.
PG&E also has a standing request which is still pending for another rate increase. In May, for example, PG&E asked state regulators to raise rates by $2.3 billion, spread over six years, to pay for improvements to the company's electrical grid.
These rate increases are for electricity, however, natural gas prices are also rising. Natural gas prices peaked earlier this year had peaked at around $12.44 per BTU, but have come down to around $8.50/BTU this week. The problem is not just the absolute cost but the sheer volatility in the price of natural gas. Gas has actually come down recently but is up compared to last years heating season.
Residential heating oil prices during the upcoming heating season (October though March) are projected to average $4.34 per gallon compared with $3.31 during the last heating season, an increase of about 31 percent. Residential natural gas prices over the same period are projected to average $15.58 per Mcf compared with $12.72 per Mcf, during the last heating season, an increase of about 22 percent.
What this all means to the consumer remains to be seen. PG&E customers may have a better indication after the PUC rules on the request. Either way, consumers would be wise to look for ways to reduce their energy costs in their homes.
Tax Incentives Continued
Buildings
Credit for business installation of qualified fuel cells, stationary microturbine power plants, and solar equipment. This provides a 30% tax credit for the purchase price for installing qualified fuel cell power plants for businesses, a 10% credit for qualifying stationary microturbine power plants and a 30% credit for qualifying solar energy equipment. This is effective January 1, 2006 through December 31, 2007.
Business credit of energy-efficient new homes. This provides tax credits to eligible contractors for the construction of a qualified new energy-efficient home. Credit applies to manufactured homes meeting Energy Star criteria and other homes, saving 50% of the energy compared to the EPACT standard. This is effective January 1, 2006 through December 31, 2007.
Energy-efficient Commercial building deduction. This provision allows a tax deduction for energy-efficient commercial buildings that reduce annual energy and power consumption by 50% compared to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) 2001 standard. The deduction would equal the cost of energy-efficient property installed during construction, with a maximum deduction of $1.80 per square foot of the building. Additionally, a partial deduction of 60 cents per square foot would be provided for building subsystems.
Energy-efficient appliances - This provides a tax credit for the manufacturer of energy-efficient dishwashers, clothes washers, and refrigerators. Credits vary depending on the efficiency of the unit. This is effective for appliances manufactured in 2006 and 2007.
Buildings
Credit for business installation of qualified fuel cells, stationary microturbine power plants, and solar equipment. This provides a 30% tax credit for the purchase price for installing qualified fuel cell power plants for businesses, a 10% credit for qualifying stationary microturbine power plants and a 30% credit for qualifying solar energy equipment. This is effective January 1, 2006 through December 31, 2007.
Business credit of energy-efficient new homes. This provides tax credits to eligible contractors for the construction of a qualified new energy-efficient home. Credit applies to manufactured homes meeting Energy Star criteria and other homes, saving 50% of the energy compared to the EPACT standard. This is effective January 1, 2006 through December 31, 2007.
Energy-efficient Commercial building deduction. This provision allows a tax deduction for energy-efficient commercial buildings that reduce annual energy and power consumption by 50% compared to the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) 2001 standard. The deduction would equal the cost of energy-efficient property installed during construction, with a maximum deduction of $1.80 per square foot of the building. Additionally, a partial deduction of 60 cents per square foot would be provided for building subsystems.
Energy-efficient appliances - This provides a tax credit for the manufacturer of energy-efficient dishwashers, clothes washers, and refrigerators. Credits vary depending on the efficiency of the unit. This is effective for appliances manufactured in 2006 and 2007.
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