EL CENTRO, Calif. (CN) — The California Public Utilities Commission on Thursday unanimously approved rate hikes for Pacific Gas & Electric, choosing the cheaper of two options presented to the board.
Set to go into effect Jan.1, 2024, the decision means California electric and natural gas customers will see, on average, a $32.62 monthly increase. Electric-only customers can expect a $22.20 increase. Natural gas-only users would have another $10.43 to pay each month.
The five-member commission board's choice — called an Alternate Proposed Decision — approved a revenue requirement of $13.5 billion for the utility, an increase of some $1.3 billion from its 2022 revenue requirement. That will help fund 1,230 miles of undergrounding power lines, as well as 778 miles of covered conductor, or insulation on overhead lines.
Additionally, it’s expected PG&E will put some $1.3 billion into vegetation management to reduce the chance of wildfire ignition. Over $2.5 billion is slated for upgrading the utility’s distribution system.
Commissioners opted against the Proposed Decision, which called for a revenue requirement of almost $13.8 billion. That would have paid for 200 miles of undergrounding and 1,800 miles of covered conductor.
“We know families already struggle to pay their bills, cut back on energy usage at the expense of their own comfort, and make hard choices and real sacrifices to keep the lights on, the food in the fridge fresh, their children warm at night,” said Commissioner John Reynolds, who presented the cheaper alternate option.
“I also say to customers that, after going through this case, after the extremely diligent review by scores of parties and commission staff — I can say that I am confident that you are getting something out of this investment,” he added.
The process of raising rates happens every few years. Utilities like PG&E must submit a budget, in this case for four years, as part of its General Rate Case. This four-year budget, 2023 to 2026, points to investments like undergrounding electric lines as a reason for the increase.
PG&E asked for $15.4 billion for 2023.
“We appreciate the commission for recognizing the important safety and reliability investments we are making on behalf of our customers, including undergrounding powerlines to permanently reduce wildfire risk,” PG&E Corporation CEO Patti Poppe said in a statement. “Undergrounding is the best tool in the highest fire-risk areas to protect our customers and hometowns and improve reliability year-round at the lowest cost to our customers.”
A vast majority of public speakers at the meeting blasted PG&E and the commission for the proposed rate increases.
Cheryl Maynard called herself a survivor of the Camp Fire, which destroyed the towns of Paradise and Concow in 2018, and led to over 80 deaths and burned over 153,000 acres. PG&E pleaded guilty in 2020 to 84 counts of manslaughter and one count of recklessly starting the Camp Fire. It was fined $3.5 million.
“PG&E rate increases are outrageous,” Maynard said. “We have people in Paradise still living on dirt in their trailers.”
Tammy Jennings, of Monterey County, said she wanted the commission to follow the will of the people.
“What we need is cheaper utilities,” she added. “You shouldn’t raise it at all, period.
“We need your help,” she added. “Do your job.”
Quanah Brightman, executive director of United Native Americans, called price gouging illegal, a refrain many public speakers echoed. Sam Liccardo, a former mayor of San Jose, said PG&E costs are skyrocketing while people are bombarded by the utility’s commercials. He asked the commission to defer deciding on any increase, asking it to look at what PG&E pays its executives and the cost of its advertisements.
Reynolds said that ratepayers do not pay for executive compensation.
In comments before the vote, the commissioners indicated they’d support the Alternate Proposed Decision.
President Alice Reynolds said it struck a careful balance. Commissioner Genevieve Shiroma said PG&E must continue to find efficiencies in its operations and apply for federal funding when available.
Commissioner Darcie Houck called a pattern of rate increases for PG&E “unsustainable,” saying she knows ratepayers are dealing with inflation.
“We as commissioners do not take this lightly,” she said.
Commissioner Karen Douglas said the decision was difficult, because the first thing seen when examining the case is the numbers. She noted that everyone currently faces rising costs while the need to invest in the electrical infrastructure is rising.
“These are investments that just need to go forward,” Douglas said.
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