New data shows PG&E rates going up as utility asks regulators for another rate hike
The quarterly rates report details that the rates went up 38% from Jan. 2021 to Sept. 2023, and from Jan. 2014 to Sept. 2023, the rates went up by 92%
Pacific Gas & Electric Co. residential electricity prices are more than twice the national average, according to new data released Thursday by the Public Advocates Office at the California Public Utilities Commission.The numbers also show that the average residential electric rates for PG&E customers have gone up over time. The quarterly rates report details that the rates went up 38% from Jan. 2021 to Sept. 2023. From Jan. 2014 to Sept. 2023, the rates went up by 92%.The report lists wildfire mitigation, transmission and distribution investments and rooftop solar incentives as the three primary statewide drivers for the 10-year average residential electric rate changes.Mike Campbell, a program manager with the Public Advocates Office, said the rates are alarming.“We are very concerned about the general trend of the direction that rates are going and how much faster they’re increasing beyond inflation,” Campbell said. “Unfortunately, that trend seems to be continuing and that’s very troubling for our affordability and our interests in promoting electrification.”Campbell said the high rates are due in large part to PG&E’s spending on wildfire mitigation, transmission and distribution investments and rooftop solar incentives.So, what can be done?“There is an opportunity to sell more electricity, which oddly can reduce, put some down pressure, on rates,” Campbell said. “We can do that with electrification, but only if we get electrification right, meaning that the timing of when that energy is used doesn’t actually create additional burdens or strains on the grid.”In response to the new data, PG&E sent KCRA 3 a statement saying, in part:“We recognize our responsibility to serve our customers safely and reliably, while working to stabilize bills for the long term. We are working to keep overall customer costs at or below assumed inflation, between 2 and 4%. We reduced our operating costs by 3% in 2022, and are currently managing 125 projects companywide to further reduce costs… We’re here to help all of our customers save money by working with them to find the best rate plan for their household, sharing no- and low-cost actions to help them reduce energy usage and better manage monthly bills, and offering assistance programs for income-eligible customers.”Finding a solution is especially critical now, with PG&E asking regulators for another rate increase. The utility said some of that money is for the long-term investment of burying thousands of miles of power lines in high-risk areas to prevent wildfires. PG&E would need CPUC approval before they can raise rates to pay for that.Regarding this initiative, PG&E sent KCRA 3 the following statement:“Since 2018, PG&E has invested on behalf of customers to make our energy system safer, more reliable and resilient. This includes investments in wildfire mitigation, system hardening and undergrounding, gas and electric risk reduction, and customer and connections. We are undergrounding 350 miles of powerlines by end of this year alone as part of our commitment to underground 10,000 miles of electric lines to help reduce the risk of major wildfires and address the challenge of climate change. This work is unprecedented and represents the largest effort in the U.S. to underground power lines as a wildfire risk reduction measure.”PG&E customers said there has got to be another way to foot the bill for those projects.“It’s great to try to prevent wildfires, like I’m all for it, but it’s coming to the cost of us,” PG&E customer and West Sacramento resident Taylor Jackson said.Jackson said she feels especially strong about having to pay more, given the Public Advocates Office’s new report showing that PG&E rates are already higher than most utilities. She said she is fed up with her PG&E bill.“I do feel like I pay a lot, especially because I’m not home a lot during the day, but my bill is still pretty high. Like, I might as well have been at home,” Jackson said. “It’s like, I don’t have a choice. I have to pay for it because I need electricity.”The CPUC is also weighing two alternative plans to PG&E’s proposal. Campbell said both options would cost customers less, which means there would be a reduction in the work to bury power lines. The CPUC could vote on those plans next month.
Pacific Gas & Electric Co. residential electricity prices are more than twice the national average, according to new data released Thursday by the Public Advocates Office at the California Public Utilities Commission.
The numbers also show that the average residential electric rates for PG&E customers have gone up over time. The quarterly rates report details that the rates went up 38% from Jan. 2021 to Sept. 2023.
From Jan. 2014 to Sept. 2023, the rates went up by 92%.
The report lists wildfire mitigation, transmission and distribution investments and rooftop solar incentives as the three primary statewide drivers for the 10-year average residential electric rate changes.
Mike Campbell, a program manager with the Public Advocates Office, said the rates are alarming.
“We are very concerned about the general trend of the direction that rates are going and how much faster they’re increasing beyond inflation,” Campbell said. “Unfortunately, that trend seems to be continuing and that’s very troubling for our affordability and our interests in promoting electrification.”
Campbell said the high rates are due in large part to PG&E’s spending on wildfire mitigation, transmission and distribution investments and rooftop solar incentives.
So, what can be done?
“There is an opportunity to sell more electricity, which oddly can reduce, put some down pressure, on rates,” Campbell said. “We can do that with electrification, but only if we get electrification right, meaning that the timing of when that energy is used doesn’t actually create additional burdens or strains on the grid.”
In response to the new data, PG&E sent KCRA 3 a statement saying, in part:
“We recognize our responsibility to serve our customers safely and reliably, while working to stabilize bills for the long term. We are working to keep overall customer costs at or below assumed inflation, between 2 and 4%. We reduced our operating costs by 3% in 2022, and are currently managing 125 projects companywide to further reduce costs… We’re here to help all of our customers save money by working with them to find the best rate plan for their household, sharing no- and low-cost actions to help them reduce energy usage and better manage monthly bills, and offering assistance programs for income-eligible customers.”
Finding a solution is especially critical now, with PG&E asking regulators for another rate increase. The utility said some of that money is for the long-term investment of burying thousands of miles of power lines in high-risk areas to prevent wildfires. PG&E would need CPUC approval before they can raise rates to pay for that.
Regarding this initiative, PG&E sent KCRA 3 the following statement:
“Since 2018, PG&E has invested on behalf of customers to make our energy system safer, more reliable and resilient. This includes investments in wildfire mitigation, system hardening and undergrounding, gas and electric risk reduction, and customer and connections. We are undergrounding 350 miles of powerlines by end of this year alone as part of our commitment to underground 10,000 miles of electric lines to help reduce the risk of major wildfires and address the challenge of climate change. This work is unprecedented and represents the largest effort in the U.S. to underground power lines as a wildfire risk reduction measure.”
PG&E customers said there has got to be another way to foot the bill for those projects.
“It’s great to try to prevent wildfires, like I’m all for it, but it’s coming to the cost of us,” PG&E customer and West Sacramento resident Taylor Jackson said.
Jackson said she feels especially strong about having to pay more, given the Public Advocates Office’s new report showing that PG&E rates are already higher than most utilities. She said she is fed up with her PG&E bill.
“I do feel like I pay a lot, especially because I’m not home a lot during the day, but my bill is still pretty high. Like, I might as well have been at home,” Jackson said. “It’s like, I don’t have a choice. I have to pay for it because I need electricity.”
The CPUC is also weighing two alternative plans to PG&E’s proposal. Campbell said both options would cost customers less, which means there would be a reduction in the work to bury power lines. The CPUC could vote on those plans next month.