Pacific Gas and Electric Co. customers will pay more now, but they might catch a break at the change of the year.
Citing higher than expected power purchase costs this year, PG&E increased electric rates by 6 percent effective Wednesday.
However, the utility said current projections indicate that it may not raise rates again on Jan. 1, a reversal of earlier predictions.
Under the new rate structure, PG&E said a household using 550 kilowatt-hours per month will see its monthly bill go from $72.12 to $73.40, or 2 percent. A household using 850 kilowatt-hours monthly will see its bill go from $148.44 to $158.11, or 7 percent.
Utility officials said increased costs of natural gas and a decrease in hydroelectric production drove electricity costs up by about $645 million this year.
The utility said it will update its forecast of 2009 electric power purchase costs in November, figuring in natural gas prices in the process. The company said it is "optimistic" the numbers will enable it to avoid an electric rate increase on Jan. 1.
Officials at the Sacramento Municipal Utility District say they anticipate no change in its rates in the immediate future.
"Over the next few months, everything looks fine. There's no rate increase," said SMUD spokesman Chris Capra. "We will re-evaluate everything in the spring, probably around March, and see where we are with the financial crisis and hydro."
San Francisco-based PG&E is the electric utility for much of the Sacramento area not covered by SMUD.
PG&E said a preliminary estimate of 2009 costs it submitted to the California Public Utilities Commission includes revisions of figures turned over to the PUC this summer, when natural gas prices were higher.
"While the price increase projections in January look better than we originally thought, we want to make sure our customers know about any possible energy price increases as soon as possible, so they can begin to prepare," said Tom Bottorff, PG&E's senior vice president of regulatory relations.
Call The Bee's Mark Glover, (916) 321-1184.
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