Why Are My Energy Bills So High?

How Utility Companies and a Broken System Are Driving Up Costs

What Is a General Rate Case (GRC)?

A General Rate Case (GRC) is the formal process where a utility company (like PG&E, SDG&E, or Southern California Edison) asks the California Public Utilities Commission (CPUC) for permission to raise customer rates. It’s supposed to be a comprehensive budget plan, submitted every 3-4 years, to cover routine operations, maintenance, and infrastructure needs.

The idea is simple: utilities forecast what they’ll need, regulators approve a reasonable amount, and rates are set accordingly.
But that’s not what’s happening anymore.

A Broken Process with No Limits

Instead of sticking to their budgeted plans, utilities are repeatedly asking for more money outside of the GRC process—and they usually get it. These "off-cycle" requests are often for billions of dollars in unplanned or overspent projects. The CPUC has been granting these requests with little resistance, and you pay the difference through rate increases.

There’s no real cap. No accountability. And it’s happening across all the major utility companies.

Overspending Without Limits

California’s major private utility companies have adopted a dangerous business model: Spend now. Ask for reimbursement later.

They routinely blow past their approved budgets, then go back to the CPUC to ask for the extra costs to be paid by you, the ratepayer.

Take PG&E as an example:
Between 2020 and 2022, PG&E was approved to spend $4.66 billion on wildfire safety. Instead, it spent $11.7 billion—more than double the budget. Now, PG&E is asking the CPUC to let it charge customers for that overspending.

This isn’t just a PG&E problem.
SDG&E and Southern California Edison also regularly submit off-budget requests for wildfire prevention, infrastructure projects, and executive compensation—knowing that the CPUC is likely to approve them. This creates a system where overspending becomes routine, not the exception.

There is no other industry where companies are rewarded for ignoring their budgets—let alone allowed to make a profit on the extra money spent.

Guaranteed Profit—Even on Wildfire Projects

When utilities invest in new infrastructure—like undergrounding wires or building substations—they don’t just get reimbursed. They get to earn a profit through a mechanism called the Return on Equity (ROE).

This ROE is guaranteed and paid by ratepayers. Recently, PG&E’s ROE increased from 10.3% to 11.3%, meaning utilities now make even more profit—off of wildfire projects, undergrounding wires, and more.

Utilities prefer costly options like undergrounding (instead of cheaper, equally safe methods like insulated wires) because the higher the cost, the higher the profit.