By David Sneed - dsneed@thetribunenews.com

The state Public Utilities Commission will hold two hearings Thursday in San Luis Obispo to take public comment on rates Pacific Gas and Electric Co. proposes to charge its customers in 2007 through 2009.

The utility's so-called general rate case calls for improvements to its gas and electrical distribution system as well as various expenses related to Diablo Canyon nuclear power plant, including $19 million to study whether to apply to renew its operating licenses.

PG&E estimates that the typical residential customer's monthly bill will increase $1.03, or 1.6 percent. That increase is lower than past ones, which have been about 3 percent or the rate of inflation, said Sharon Gavin, PG&E spokeswoman.

The San Luis Obispo hearings are part of a series of 10 the utility will hold throughout its service area, which runs north through the Ukiah area.

Staff with PG&E and the commission will be available at the meetings to answer questions. An administrative law judge overseeing the case also will be available.

In addition to comments on rates, the PUC wants to hear from people about plans by PG&E to close down all 84 of its payment centers and replace them with more centers inside other businesses.

That move is intended to increase customer convenience, Gavin said. For example, PG&E's payment center on Higuera Street in San Luis Obispo would be replaced by 14 so-called neighborhood centers from San Luis Obispo to Solvang.

One of the more controversial aspects of the rate case is the plan to spend

$19 million to study whether to apply to renew Diablo Canyon's operating licenses. The plant's licenses will expire by 2025 if not renewed for 20 more years of operation.

Nuclear power critics oppose the expenditure. They believe it is a waste of money because license renewal is the norm in the industry, and it is a foregone conclusion that PG&E will seek it.

"Ratepayers deserve an independent cost/benefit and risk analysis of the state's continued reliance on aging nuclear plants, not a PG&E study of whether license renewal will profit its shareholders," said Rochelle Becker with the Alliance for Nuclear Responsibility.

PG&E plans to spend more than $650 million in power plant and electrical and gas distribution facility improvements. Included is $25 million to replace a corporate jet that allows PG&E executives to reach the plant in two hours in the event of a nuclear emergency.

Two expensive upgrades at Diablo Canyon are not part of the 2007-09 rate package.

Diablo Canyon workers are completing replacement of low-pressure turbines, which were part of the previous rate case.

PG&E also applied separately to spend more than $700 million to replace the plant's steam generators, work scheduled for later this decade.

If you go

The Public Utilities Commission will hold a public hearing for PG&E customers at 2 p.m. and again at 7 p.m. Thursday at the San Luis Obispo Veterans Memorial Building, 801 Grand Ave.

-------------------------------------------------------------------------------- Reach David Sneed at 781-7930.