The California Public Utilities Commission is expected to discuss and may make a decision on Nov. 16 on a proposed rate hike by Pacific Gas and Electric Company.
Here’s a breakdown on what to know about the proposal and how your PG&E bill may be impacted.
Why does PG&E want to raise rates?
PG&E last month made its case to state regulators for hiking rates to adjust for rising operating costs as well as reducing the risks of its operations.
How much does PG&E want to raise rates?
The company is looking to raise rates by about 22%, saying that that accounts not just for inflation but also the high price of wholesale natural gas. On top of that, it wants the extra revenue for risk reduction.
One such project: placing 2,100 miles of power lines underground to reduce the threat of a wildfire being triggered by those lines in high risk areas.
“PG&E has evolved from reacting and responding to events,” PG&E CEO Sumeet Singh recently said to state regulators, “and we are better than that now and you need us to be.”
Any PG&E rate hike would need to be approved by state regulators
CPUC would need to approve a hike before it goes into effect and has countered PG&E’s plan with a proposal that would include a 12% increase.
How much more will PG&E service cost after a rate hike?
Customer advocates say PG&E’s plan could amount to $50 more per month for the average bill. In comparison, the state’s counter-proposal would come out to around $28 more per month.
CPUC’s plan does approve some undergrounding, but would focus more on insulating power lines to prevent them from sparking a wildfire.
Several groups rallied outside of the California State Government Office in San Francisco Wednesday. They protested the newest rate hike request from PG&E. Raj Mathai speaks with former San Jose mayor Sam Liccardo, now with FAIR California on this.
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2023-11-02 04:56:32