PG&E customers could see an increase in their power bills as state regulators consider two rate proposals.
It's all part of PG&E's general rate case, or GRC, which is done every four years and allows the California Public Utilities Commission (CPUC) to determine how much PG&E can charge its customers and how the money is spent.
The CPUC has two options: its proposed decision or an amended proposed decision.
“Basically, it's a way for PG&E to recover costs or increase costs to maintain our infrastructure but it's also a way that the California Public Utilities Commission can weigh in, make sure that those costs are reasonable and that... and that the customer rates that we're requesting are also reasonable for our customers,” said Carina Corral, PG&E communications specialist.
Each proposal has different rate increases.
“So, the majority of the funding goes towards safety improvements to our system and a lot of that is undergrounding. PG&E has found that undergrounding eliminates fire risk by 98% and we've taken a stand that catastrophic wildfires shall stop," Corral said.
The below graphic is a breakdown of how PG&E's undergrounding proposal may impact a typical residential PG&E customer.
Although there is no set rate increase yet, some community members are already expressing concerns.
“Again, we've been paying for everything for PG&E for the whole time. I've been here 40 years and our rates still go up, even though they keep telling us that's the answer to lower our rates," said Joel Justin Carlson, San Luis Obispo resident.
“And I feel especially for senior citizens it will be quite a burden... but then you cannot live without electricity," said another San Luis Obispo resident.
PG&E says that undergrounding power lines is simply the most cost-effective way to stop wildfires. This will help eliminate some of the annual costs associated with vegetation management and maintenance.
“Every day PG&E is working to make the system stronger and more reliable for our customers and these funds go directly towards safety improvements to our gas and our electric systems. We understand the impacts to customers. This is really in the face and then in the name of safety," Corral said.
“That should have been done from the beginning. They should have known that from California's past. Yes, it's a good thing, you bet, but getting the taxpayer to pay for it again, no," Carlson said.
For some, even a slight increase in bills is an additional financial burden.
“Well, I feel that everything is going up and it'll be hard for the people. People with the kids. It'll be hard, yeah. So I think, especially for senior citizens, our income doesn't go up," said another San Luis Obispo resident.
On Oct. 8, oral arguments are set to take place at the CPUC. On Nov. 2, a CPUC meeting will be held, which, according to the commission, may result in a vote on the proposal.
According to the CPUC, the proposed decision would result in a 12.5% increase for the average residential customer, and the alternate proposed decision would result in a 9.9% increase.
The average bill for a PG&E customer as of Sept. 1 is $190.84 for electricity and $69.23 for gas. Non-care residential customer bills average around $260.07.
If approved by the CPUC, customers can expect to see an increase in their bills starting Jan. 1, 2024.
A PG&E spokesperson said they have several programs that can help customers including budgeting tools, bundling options and programs for low-income families, which can be found on the PG&E website.
