The document discusses PG&E's tiered residential electricity rates and how they negatively impact customers in Kern County and other hot inland areas of California. It argues that PG&E's top electricity tiers are priced much higher than average costs and that customers in Kern County end up paying more than customers in Sacramento or Los Angeles for the same electricity usage. It proposes a referendum for the Kern County Board of Supervisors to take actions to negotiate more fair and equitable electricity rates for Kern County residents.

1. Presented by Michael Turnipseed Kern County Taxpayers Association March 2, 2010 The Unintended Consequences of the State’s Mishandling of Utility Regulation: PG&E Residential Electric Tiered Rates, Prop 16 and A Proposal for Consideration Part I KERNTAX

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7. PG&E Residential Electric Tiered Rates * Rate Filing Submitted to CPUC 2/26/2010 KERNTAX 75% of kWh sold at these rates 25% of kWh sold loaded with 100% of cost increases 75% of kWh sold at these rates 25% of kWh sold loaded with 100% of cost increases

8. PG&E Residential Electric Tiered Rates KERNTAX 52% = the % of revenue collected from Tiers 3 – 5 for kWh sales 25% = the % of revenues required from Tier 3 – 5 residential ratepayers to recover costs of kWh sales Revenue Requirement Revenue Collected March 1, 2010 Rates 52% = the % of revenue collected from Tiers 3 – 5 for kWh sales 25% = the % of revenues required from Tier 3 – 5 residential ratepayers to recover costs of kWh sales Revenue Requirement Revenue Collected June 1, 2010 Proposed Rates

13. PG&E Residential Electric Tiered Rates Estimates Based on 2009 Revenue Requirement Filing KERNTAX

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23. KERNTAX Home Market & Property Tax Value Impact From High Utility Rates PG&E Central Valley Customer Annual Utility Bill $8,900 PG&E Central Valley Customer @ SMUD Rates $4,900 Central Valley "Above Market" PG&E Rate Cost $4,000 Market Ask Price: Bakersfield Home $550,000 Debt Equivalent of "Above Market" PG&E Rates ($95,000) Market Bid Price: Bakersfield Home $455,000 Property Tax @ Market Bid Price $5,460 Property Tax @ Market Ask Price ($6,600) Property Tax Effect on "Above-Market" PG&E Rates ($1,140)