FRESNO COUNTY – The California Public Utilities Commission (CPUC) has approved another electricity rate hike for PG&E, the fourth rate hike CPUC has approved this year for the beleaguered energy giant.
The rate hike was approved at CPUC’s meeting on Sept. 12 and goes into effect. Oct. 1. The increase translates, roughly, to a monthly increase of $6 for customers and terminates after 17 months. The increase was listed on the meeting’s consent agenda, which means it was approved as part of a single vote with other consent agenda items with no input from the public.
Mark Toney, executive director of The Utility Reform Network (TURN), told ABC30, “To add insult to injury, the commissioners didn’t even explain their vote. They put the increase on the consent agenda so there was no discussion among them.”
In the ABC30 piece, PG&E customer Robert Martinez said (of CPUC), “I can’t believe you guys go to bed at night knowing what you’re doing, knowing what’s going on in the community.”
According to CPUC, the $6 increase will help PG&E recover about $944 million of the $2.1 billion in losses the company sustained in 2022-23.
In an email to the Times, Terrie Prosper, CPUC director of strategic communications, said CPUC’s approval for the interim rate recovery allows PG&E to collect a portion of its requested rate increase prior to a final CPUC decision.
Had PG&E not been granted the interim rate recovery, said Prosper, the company would have had to borrow more money to fund operations until a final decision is reached and the interest on the borrowed money would be footed by PG&E customers. Proper added that the Commission did not agree to the company’s request to continue the interim rate recovery beyond 17 months.
RECOUPING WILDFIRE AND OTHER COSTS
At issue at the meeting was an application PG&E submitted to the Commission on Dec. 1, 2023. The 24-page application laid out the company’s reasons for requesting the rate hike. PG&E is attempting to recoup losses it sustained in 2022-23, including damages from winter storms and various wildfires that were started due to the company’s aging equipment.
In her email, Prosper said the rate increase awarded on Sept. 12 was included in a supplemental motion PG&E filed with CPUC on Jan. 29, 2024. She noted the Dec. 1, 2023 motion sought to recoup $1.48 billion or 85% of the $2.1 billion in company losses. The application summary notes that the $944 million represents “55% of the total amount, approximately $2.1 billion, that PG&E seeks authority to collect from taxpayers.”
In a statement to media, PG&E said, “The 2023 Wildfire Mitigation and Catastrophic Events (WMCE) application was submitted to recover a portion of the costs associated with wildfire safety work and response to the historic storms of the winter 2022-2023. PG&E restored power to more than 7 million customers during a record 15 major storms that winter– mobilizing over 7,200 personnel to replace or repair more than 4,500 poles and 850 miles of wire. Timely recovery of these expenses helps to lower costs for customers in the long term.”
Regarding the rate increase, PG&E said, “PG&E is working to stabilize bills and limit average annual combined gas and electric bill increases to no more than 3% through 2026. We’re being good stewards of our customers’ money by working to maximize every dollar, including adopting company-wide savings initiatives to reduce our operating costs and limit unnecessary expenses.”
Apparently, customers do not agree with the company’s belief it is a good steward. According to a March 2024 survey by the American Customer Satisfaction Index, PG&E was ranked in the bottom third of 27 utility companies nationwide in terms of customer satisfaction. It should be noted that the company’s 2024 ranking was higher than where it was ranked in 2023.
