What to Know About Utility Rate Hikes in the Bay Area

Source: NBC News Bay Area  |  By Alicia Corso

PG&E CEO Patricia Poppe told NBC Bay Area the utility plans to keep rates flat for the next few years after a number of recent rate increases. PG&E rates have gone up 101% between 2015 and 2025, according to the Public Advocates Office of the California Public Utilities Commission. But a downward trend is projected into next year. Poppe explained that the utility is not cutting rates, but as some proposed increases take effect, others are expiring, so they offset, and customers won’t feel them.

Lee Trotman is the Communications Director of The Utility Reform Network (TURN) and had this to say: “PG&E can claim that customers might see slightly lower bills next year because current bills are artificially inflated due to the six rate increases last year.  One increase was for overspending by double the amount for wildfire mitigation efforts.  So a slight decrease from these inflated rates does little to help customers experiencing an affordability crisis. Only 50% of the revenue requirement  (the amount that PG&E gets to collect from customers) is part of the General Rate Case.  The other 50% of what PG&E collects comes from rate increases outside of the GRC.  Right now, PG&E has 17 rate increase requests pending at the CPUC so we can’t imagine that rates are going down if even half of the 17 increases are approved.  As always, the proof will be if customers’ bills decrease instead of increase.”