OAKLAND — PG&E has won approval for a plan that will shove monthly utility bills higher — yet again — starting in April, a decision a consumer advocacy group is blasting as a “rubber stamp” by state regulators.
Monthly bills are slated to rise by an average of $4.68 a month for customers who receive combined electricity and gas services from the utility.
The state Public Utilities Commission approved PG&E’s plans for higher monthly bills — known officially as an interim rate request — as part of a consent calendar packed with 54 items.
“The PUC rubber-stamped PG&E’s interim rate request,” said Mark Toney, executive director of The Utility Reform Network, or TURN.
The regulatory panel approved the consent calendar in a single vote Thursday that featured very little debate by the five members of the powerful — and unelected — commission.
As of early January 2024, PG&E’s average bills for combined services used by the typical residential customer were around $294.50 a month.
The utility, which has been blamed for a series of destructive and deadly wildfires in the Golden State, has said it needs to charge higher rates to cover improvements to its equipment to prevent future catastrophic wildfires.
“The Wildfire Gas and Safety Cost Interim Rate Relief decision authorizes a temporary rate change to start recouping a portion of the money that was spent for wildfire mitigation and delivering key safety, compliance and modernization investments for our energy system,” PG&E spokesperson Mike Gazda said in comments emailed to this news organization.
This year’s January bills were roughly $53.77 higher than the bills in January 2023, when combined monthly charges for residential customers receiving combined services were averaging $240.73.
Monthly electric bills for a typical residential customer monthly bill are slated to increase by an average of $3.65. The gas bill for a typical residential customer is expected to rise by $1.03 a month, PG&E estimated.
Starting in April, the average monthly PG&E bill for combined services is slated to be around $299.18 a month — just shy of the ominous milestone of $300 a month.
One bright spot: It’s possible the interim higher bills could lead to a refund if further regulatory review determines customers were forced to overpay on an interim basis.
“These costs were not included in prior rate proceedings,” Gazda said in the emailed comments. “We have requested to recover these costs over multiple years to limit the impact on customers.”
The monthly charges that went into effect in January 2024 were 22.3% higher than the average bill for the typical residential customer during the same month the year before.
That means PG&E monthly bills have soared higher at a pace that far outstrips the annual inflation rate, as measured by consumer prices, in the Bay Area. During 2023, consumer prices rose 2.6% in the Bay Area.
State regulators claim they hope to bring PG&E bill increases more in line with the annual inflation rate. At present, that goal appears to be beyond easy reach.
Gov. Gavin Newsom appointed all five of the current commissioners of the PUC. The five commissioners were all confirmed by the state Senate.
Toney, with TURN, was disappointed the state PUC approved the interim increase in rates, leading to yet another jump in monthly costs, through a mass endorsement by the commissioners of the consent agenda.
The PUC did not immediately respond to a request for comment regarding why the item was on the consent calendar.
“Ratepayers deserve an explanation from the five commissioners,” Toney said, “about why they approved this.”
