California regulators approve another PG&E rate hike, raising customer bills by $6 per month starting October 1st.
At a Glance
- California Public Utilities Commission unanimously approves fourth PG&E rate hike in 15 months
- Average electric bills to increase by $5.16 per month for 17 months
- Rate hike aims to recover $940 million for wildfire mitigation and storm damage costs
- PG&E customers’ rates have more than doubled in the last decade
- Consumer advocacy groups and ratepayers strongly oppose the increase
California Approves Another PG&E Rate Hike
The California Public Utilities Commission (CPUC) has unanimously approved yet another rate hike for Pacific Gas and Electric Company (PG&E) customers. This marks the fourth increase in just 15 months, further burdening Californians already struggling with high utility costs. The latest hike, set to take effect on October 1st, will raise electric bills by an average of $5.16 per month for residential customers over a 17-month period.
PG&E claims the rate increase is necessary to recover approximately $940 million in costs related to wildfire mitigation efforts and damage from winter storms. The utility company states that these expenses were incurred beyond what was previously authorized in rate proceedings. However, this explanation has done little to quell the growing frustration among ratepayers who have seen their bills skyrocket in recent years.
A Pattern of Rising Costs
This latest increase follows a series of rate hikes that have significantly impacted PG&E customers. In July 2023, bills increased by $10.30 per month, followed by another $5 per month increase in March. Additionally, a general rate hike in November led to an average increase of $32 per month starting in January, ostensibly to fund the burying of power lines as a wildfire prevention measure.
The cumulative effect of these increases has been substantial. PG&E reports that the average monthly bill is currently $281.26, though many customers claim their actual bills are much higher. Over the past decade, PG&E customers’ rates have more than doubled, with average bills now approaching $300 a month. This new hike is estimated to cause another $5.16 per month increase.
Public Outcry and Opposition
The rate hike has faced strong opposition from ratepayers and consumer advocacy groups. Many Californians are struggling to manage their utility bills, with some forced to choose between paying for electricity and other essential needs. Public comments submitted to the CPUC were overwhelmingly against the increase, citing financial hardships and questioning the benefits of the rising costs.
The Utility Reform Network (TURN), a consumer advocacy group, has been vocal in its opposition to the rate hikes. They argue that the compounded impact of recent cost increases is placing an undue burden on consumers. Ratepayer advocates are pushing for a cap on utility bill increases, suggesting they should not exceed the cost of living adjustments provided by Social Security.
PG&E’s Response and Future Outlook
In response to the growing criticism, PG&E has stated its commitment to managing customer costs effectively. The company aims to stabilize bills and limit average annual combined gas and electric bill increases to no more than 3% through 2026. PG&E also mentions a one-time $55 climate credit expected in October, which may offer some relief to customers.
Despite these assurances, customer satisfaction with PG&E remains low. The company was ranked in the bottom third of 27 utility companies in a 2024 survey by the American Customer Satisfaction Index. As Californians brace for yet another increase in their utility bills, many are left wondering when the cycle of rate hikes will end and how much more they can afford to pay for essential services.
