PG&E gets OK for rate increase from California utility regulator

SACRAMENTO, Calif. (CN) — California’s utility regulator approved in a Thursday meeting another rate hike for Pacific Gas & Electric, one of a handful of such increases this year.

People attending the meeting in person and commenting by phone slammed the five-member Public Utilities Commission for considering the rate increase, which passed 4-0 with one member abstaining.

One speaker called the commission “shameful people.” Another questioned how they could sleep at night, knowing that some Californians go without light, heat and air-conditioning because of their utility costs.

“We simply cannot afford these insane bills,” Erica Evans told commissioners.

The rate hike was on the commission’s consent agenda, meaning no discussion by commissioners occurred on the agenda item and it was approved along with several other matters with one vote.

The Thursday decision stems from an amended January motion filed by the utility giant to recoup $903 million plus interest over 17 months for wildlife mitigation actions taken in 2022 and 2023. PG&E said $903 million was about 55% of the total $2.1 billion spent.

The commission did, however, deny a request by PG&E to collect up to 85% of its costs from ratepayers after the 17-month period had ended.

The utility giant must submit a letter soon to determine when the collection period starts.

According to PG&E, a customer who has no discounts and uses 500 kilowatt hours a month would see a $6 increase on their monthly bill. Those with the California Alternate Rates for Energy discount would see a $4 increase.

The utility in a statement said it’s working to limit combined gas and electric bill rate increases to 3% through 2026 by maximizing customer dollars and implementing savings initiatives to limit operating costs and unnecessary spending.

Additionally, PG&E pointed to both rate increases and decreases that have occurred recently. A 9% residential electric decrease happened in July, which helped contribute to a net decrease for customers when compared to June 2024 rates.

That appeared to give speakers at Thursday’s meeting little comfort. They attacked the salary of PG&E’s CEO, railed against rising rates as their own income remains stagnant and urged commissioners to convert the publicly traded utility into a state-owned one.

One man kept repeating the refrain, “Stop the rate hikes. I need insulin,” saying he couldn’t afford both utility bills and his medicine. Others referred people to organizations like Reclaim Our Power and Stop PG&E.

“Not only is it infuriating, it’s also really painful,” one woman said.

Reclaim Our Power wants to restructure California’s energy system by transitioning to one that’s decentralized and democratized. Stop PG&E has the mission of getting everyone, regardless of socio-economic status, fair and affordable utility prices. It works toward that goal by championing transparent pricing structures and holding PG&E and the commission accountable.

While many people opposed Thursday’s rate increase, that portion of the meeting moved much quicker than a November 2023 meeting that had a much wider scope. That meeting was part of a larger rate-setting process that happens every few years.

In November, the commission approved a revenue requirement of $13.5 billion for PG&E — an increase of some $1.3 billion from its 2022 revenue requirement. The utility pointed to the money going toward undergrounding over 1,200 miles of power lines and placing insulation on almost 800 miles of line. About $1.3 billion would go toward vegetation management and over $2.5 billion for improving PG&E’s distribution system.

That rate hike, which became effective in January, meant an expected $32 monthly increase for electric and natural gas customers. Electric-only ratepayers expected a monthly hike of about $22, while natural gas-only users would see bills rise by under $11 a month.