PG&E's Latest Rate Hike Approved By CA Regulators

SAN FRANCISCO — State regulators Thursday authorized another rate increase for Pacific Gas and Electric customers, increasing monthly expenses for households that already pay some of the nation's highest power prices.

The latest hike arrives in the wake of a 22 percent increase that took effect at the start of the year, and soaring earnings at the utility, which recently announced a nearly 25 percent surge in profits during 2023. PG&E said the figures in its earning report were not a direct result of the higher rates.

According to the San Francisco Chronicle, the average household saw their bills rise more than $34 on Jan. 1, and the increase approved Thursday will tack on an estimated $4.68 each month through next April. The utility said it needed the funds to recoup costs for necessary modernization and wildfire prevention projects completed in recent years.

The Chronicle reported some temporary relief would materialize next month in the form of a once-yearly climate credit estimated to save $146 for customers with gas and electric service.

A study last year from the California Public Utilities Commission's Public Advocate's Office found electric bills had risen 38 percent over three years, with the Bay Area paying more than twice the national average for electricity.

Consumer advocates have vocally opposed this year's rate increases, claiming PG&E allowed shareholders to pocket billions at the expense of customers and have criticized the CPUC as a "lapdog."

According to KTVU, PG&E requested the new fixed charge to help cover expenses for safety upgrades implemented in 2022. Last month, the utility said its 2024 plan included investments to keep systems safe and reliable and meet growing demand. PG&E also said it plans to limit future annual increases at or below the rate of inflation.