(InEDC) BY Staff Published: September 15, 2023
EL DORADO COUNTY – In Northern California, 16 million people may soon face increased power rates as Pacific Gas and Electric (PG&E) requests a rate hike from state regulators. The utility company is seeking to raise its revenue by 26%, but the California Public Utilities Commission (CPUC) is proposing a more modest increase of 13% or even 9%. While exact figures have not been confirmed, experts estimate that customers could see an additional $28 on their monthly bills, amounting to $336 per year.
PG&E argues that this rate hike is necessary to cover the costs of burying power lines to prevent wildfires. The utility company plans to use the funds to underground 2,000 miles of power lines, significantly reducing the risk of wildfires. However, the CPUC suggests that PG&E only underground 200 miles and insulate the remaining lines, which experts claim would save ratepayers $3.8 billion compared to PG&E’s proposal.
Residents in El Dorado County, one of the affected areas, have expressed frustration at the ever-increasing bills. Some believe that PG&E should handle its finances better to avoid burdening customers further. Mark Toney, the executive director of the Utility Reform Network advocating for ratepayers, criticizes the proposed rate hikes, stating that they should not surpass the rate of inflation.
While insulating power poles is deemed less expensive and quicker, PG&E argues that undergrounding lines is a more effective long-term solution, reducing the wildfire risk by 98% compared to 65% with insulation. However, there are concerns about the timeline for undergrounding, as high fire risk areas may not have 20 years to wait for all 10,000 miles of power lines to be buried.
The CPUC is set to vote on PG&E’s revenue increase and proposal for insulating lines on November 2. In addition to undergrounding, PG&E also claims to be working on other wildfire mitigation projects such as vegetation management and capacity upgrades to help the state achieve its climate resiliency goals. Ultimately, the decision will impact millions of Californians who may be forced to bear the burden of increased power rates.
More information on CPUC’s proposal and PG&E’s response
