12/18/2023
Starting from January 2024, customers of Pacific Gas & Electric (PG&E) will see their rates increase by almost 13%. This comes as a result of a unanimous vote by the California Public Utilities Commission (CPUC) that took place on a Thursday.
Customers can expect to pay an additional $30 to $35 on their monthly bills once the new rate is implemented. The new rates will begin on the first day of January, but some customers may not see the change reflected until they receive their bills in February.
The vote resolved PG&E's General Rate Case (GRC), a public review process that the company must undergo every four years with the CPUC. The current GRC application covers a three-year period, from 2023-2026.
The rate increase was initially proposed by PG&E in June 2021. The company argued that the increased rates would help ensure "safe and reliable service" and help mitigate risks associated with wildfires. The plan that was approved was an alternate proposal presented by CPUC commissioner John Reynolds.
A significant component of PG&E’s plan to mitigate wildfire risk involves "undergrounding" or relocating power lines below the surface in areas most susceptible to fires. This plan will finance the undergrounding of 1,230 miles of lines, reducing the wildfire risk from company equipment by 94%. The CPUC mentioned that along with undergrounding, inflation was among the top factors in PG&E’s request to raise rates.
The CPUC approved a $13.5 billion revenue requirement for PG&E for 2023, which is less than the $15.4 billion the company originally requested. PG&E had also initially requested a 17.9% increase in the combined bill for the typical residential customer, which was adjusted to a $32.62 increase or 12.8% in the final plan.
This is not the first time PG&E has increased its rates in the past year. In January, the company notified customers about higher bills due to high demand for heating as temperatures dropped.
PG&E suggests that people look into discount programs, including the California Alternate Rates of Energy (CARE) and Family Electric Rate Assistance Program (FERA), to help mitigate the impact of the rate increases.