Almond Hullers to Get Power Discount

Almonds are just almonds.

That was the decision Thursday by the California Public Utilities Commission when it ordered PG&E; Corp.’s Pacific Gas & Electric Co. to sell power to almond hullers and shellers at a discounted agricultural rate.

The utility has been charging the industry a higher commercial rate, arguing that the process of freeing the nut is a manufacturing technology that changes the form of the almond.

Although an administrative law judge rejected an appeal from the almond hullers last year, they had a valuable ally in PUC President Michael R. Peevey.

When Peevey introduced a proposal to change the rates at a commission meeting Thursday, he brought along visual aids: almonds in the shell and almonds out of the shell.

He rattled the containers and asked his fellow commissioners: “Is this convincing?”

“Almond orchards are planted for almonds, not for hulls or shells,” Peevey said, likening the process to removing the leafy tops from carrots.

The commission agreed on a 4-1 vote. Geoffrey F. Brown voted no, but didn’t say why.

The ruling is expected to shave 15% to 20% off the industry’s electric bills.

Commissioner John Bohn, who voted in the majority, said it might be helpful to give utilities “meaningful guidance” about what activities should be classified as agricultural.

“I’m appreciative and sympathetic to the utility in this case not having any idea what they’re supposed to do,” Bohn said.

The commission, however, did not give such additional guidance or direct its staff to do so.

Almonds are one of California’s most important agricultural commodities.

Last year, the state’s farmers sold more than $2 billion of the nuts -- about 1 billion pounds, accounting for 80% of the world’s crop.