Electricity rates could drop by the end of the year for millions of utility customers. That news from a senior official in the governor´s office. The official — who spoke on condition of anonymity — says Governor Davis will announce today that he´s asking state energy regulators to grant a $1 billion rate reduction.
The lower rates would affect more than nine million customers of Pacific Gas and Electric, Southern California Edison and San Diego Gas and Electric. The state stopped buying power for those utilities at the end of last year, and no longer has to arrange for large reserves of electricity, hence the savings.
An average residential customer who pays $70 a month for electricity could see a savings of $30 a year.