Northern California customers of Pacific Gas & Electric Co. will see their utility bills rise again this year after regulators approved another new rate increase Thursday.
It marks the fourth rate increase for PG&E customers this year. The California Public Utilities Commission (PUC) approved the hike with a 4-0 vote on its “consent agenda,” a process that involved no discussion among the commissioners.
The increase, which amounts to $6 per month on average for each electric customer, is intended to help PG&E recover approximately $944 million in costs associated with winter storms during the 2022-23 season and wildfire mitigation efforts.
Considered a temporary rate hike, the increase will go into effect next month and sunset after 17 months.
The approved rate increase comes as PG&E recovers from a challenging winter season, when it restored power to 7 million customers after 15 major storms damaged thousands of utility poles and hundreds of miles of wires.
PG&E said to regulators that recovering those costs now will help lower expenses for customers in the long run by allocating them to those who were customers when the costs were incurred.
Utility representatives said PG&E is attempting several strategies to limit future rate hikes. The company reduced rates in July and is working to limit average annual bill increases to no more than 3% through 2026.
Electric customers of PG&E can also expect a $55 climate credit next month, a benefit of the state’s cap-and-trade program.
The approval went forward despite public opposition, including from customer groups. Many voiced concerns about their ability to afford their utility bills, which currently average around $281 per month for combined gas and electric service.
A recently formed organization of customer activists called Stop PG&E are advocating for increased pressure on utilities from their regulators, which they say are blind to the suffering of consumers navigating the challenges of rising costs.
“Why are we having these rate increases when PG&E has profits in the billions,” asked one of the group’s activists Matthew Oliver at a recent protest in Sacramento. “The biggest issue is the PUC is appointed by Newsom. No one is representing the people anymore.”
Consumer advocacy groups, including The Utility Reform Network (TURN), have opposed the rate hikes and warn that the compounding impact of PG&E’s recent rate hikes is over burdening customers.
Despite these objections, commissioners have said that rejecting rate increases would force PG&E to borrow money to cover its expenses, raising the cost of borrowing and potentially leading to additional costs for ratepayers.
Gov. Gavin Newsom and a handful of lawmakers aimed to tackle rising electric costs in this legislative session with little success.
An unreleased plan by the Newsom administration sought to give customers relief and lower utility costs long term quickly fizzled following utility opposition in the capitol. Instead, lawmakers and the governor agreed to hold a special session on gasoline prices.
Local News
