EL DORADO COUNTY, California. Cris Alarcon, (October 25, 2023) – The California Public Utilities Commission (CPUC) is on the verge of making a significant decision that will affect Pacific Gas & Electric (PG&E) customers across the Golden State. Scheduled for November 2, the upcoming vote will decide on proposed rate increases as part of PG&E’s General Rate Case, a four-year budgetary cycle. These increases are sought to cover essential investments and address the ever-present challenge of inflation.
The Proposed Rate Increases: A Closer Look
For the four-year period from 2023 to 2026, PG&E has requested a substantial $15.4 billion to sustain its services. The CPUC, in response, has presented two options: a Proposed Decision, setting costs at $13.8 billion, and an Alternative Proposed Decision, with costs at $13.3 billion. These decisions will have a significant impact on customers’ wallets and the utility’s ability to provide safe and reliable services.
Initially planned for a vote earlier this year, the decision was postponed, and the difference between approved 2023 rates and actual rates will be reconciled during an upcoming proceeding. This development has been closely watched by both PG&E and its customers.
What’s at Stake: The Proposed vs. Alternative Decision
Commissioners will vote on November 2 on the Proposed and Alternative Proposed decisions, both of which would lead to higher rates. If the Proposed Decision is approved, the average monthly bill for an electric and gas PG&E customer will rise by $31.13, equating to a 12.5% increase. Electric-only customers can expect a monthly increase of $22.37, while natural gas-only customers would see an $8.76 increase.
The Alternative Proposed Decision, if ratified, will result in a $25.25 monthly increase for an average electric and natural gas customer, an $18.59 increase for electric-only customers, and a $6.66 increase for natural gas-only customers, totaling a 9.9% increase.
Public and Political Response
The proposed rate increases have sparked concerns among the public and political figures. State Senator Brian Dahle, representing a vast region in Northeast California, voiced his apprehension about PG&E’s proposed $40 monthly rate increase for consumers, highlighting the financial burden it would impose on families and seniors.
PG&E has justified the rate increase as necessary for undergrounding electrical lines to enhance safety, a measure especially pertinent in areas prone to wildfires. However, the CPUC has questioned these efforts and offered alternative solutions.
Local Perspective: Concerns and Implications
Nevada County Supervisor Ed Scofield raised questions about the lack of substantial undergrounding efforts in his region and expressed doubts about potential damage due to such initiatives. PG&E, unlike others, does not face California Environmental Quality Act restrictions, making it essential for local governments to communicate their concerns regarding such projects.
As the rate increases loom on the horizon, residents and local officials are bracing for the impact it may have on their budgets and the utility’s services.
The crucial CPUC meeting is scheduled for November 2 at 11 a.m. at the Warren-Alquist State Energy Building in Sacramento. It’s an opportunity for the public to engage and have their voices heard on this pressing matter.
