Frustration Grows as PG&E Proposes Yet Another Rate Hike Amid Rising Utility Costs!
Your monthly PG&E bill could soon increase by another $6 before the year ends. California regulators are set to vote on whether to allow PG&E to recover electricity costs incurred during recent winter storms that caused widespread power outages.
The cost of natural gas increased back in September, adding about $5.78 to the average PG&E bill. PG&E has attributed this increase to a decline in gas demand. For months, utility watchdog groups have been urging fair utility rates. Still, next week, the California Public Utilities Commission (CPUC) is expected to decide on another electricity rate hike of 2.7%, which would add around $6 to the average monthly bill.
Mark Toney, the Executive Director of The Utility Reform Network (TURN), has been vocal about the issue, stating, “There are no limits to how much the Public Utilities Commission can grant in hikes. That’s why TURN has been fighting for a cap on increases no more than the cost-of-living adjustment provided by social security.”
TURN argues that PG&E has been allowed too many rate hikes this year. Toney highlighted that this would be the fourth rate hike in 2024 alone. “Every rate hike is like the tip of the iceberg; every hike stacks on top; that’s why people are so angry,” Toney added.
PG&E justifies the proposed rate hike as necessary to recover expenses from dealing with winter storms that left many without power. The company’s data shows that residential utility rates have increased by 54% since 2020, when PG&E exited bankruptcy.
Erin Hawkins of Community Action Marin expressed concerns about the proposed rate increase’s impact, particularly on vulnerable communities. “Anytime there’s an increase in the cost of living, it will disproportionately impact our communities of color, low-income, and elderly communities,” she said.
Community Action Marin connects people with services and offers utility payment assistance, and in 2024 alone, more than 500 individuals have received help. “We will always be here to support those communities any way we can,” Hawkins reassured.
PG&E did not grant a request for an interview but provided a statement. The utility said it is working to keep combined gas and electric bill increases to no more than an average of 3% per year through 2026 and has adopted company-wide savings initiatives to cut operating costs and avoid unnecessary expenses.
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However, Toney believes that it’s unfair for PG&E to pass these expenses on to customers. “You can’t put all expenses on everyday customers, it’s not right,” Toney argued. The CPUC is scheduled to vote on this rate increase on September 12, and many are anxiously awaiting the decision.