Utility company cites climate change in push for additional rate hikes

A San Francisco-based electric company that was recently approved to bump up monthly costs for consumers is asking for yet another rate hike due to climate change, according to KTVU.

Pacific Gas and Electric Company customers will see their bills increase by $33 per month starting at the beginning of the year. However, PG&E claims it is not enough to protect against climate concerns.

The utility company is now seeking approval for another rate hike that will increase monthly bills by $12-$20 per month on top of the already-approved New Year's Day increases that have yet to appear on customers' bills.

"We are working to keep customer costs at or below assumed inflation for the long term, between an average of 2% and 4% a year," the company recently claimed.

KTVU reported that increases for 2023 and 2024 "will be large."

On December 1, PG&E filed an application with the California Public Utilities Commission to explain why it needs $2 billion from its customers, citing safety reasons.

The increase that takes effect in January was approved by the CPUC for the electric company to fund the undergrounding of electric lines to decrease the risk of wildfires. Now, PG&E says more funding is required for wildfire mitigation.

In a statement to KRON, the company said, "The wildfire mitigation and catastrophic events application is an annual request to recover a portion of the costs associated with wildfire mitigation, catastrophic events such as wildfires and storms, and other activities related to safety that are incurred beyond. These costs do not include instances where PG&E equipment was found to have caused a fire."

The Utility Reform Network, a nonprofit group opposed to the "outrageous" rate hikes, accused PG&E of gouging its customers.

"It's gonna be between $12 and $20 additional each month. That's on top of the $33 that's coming January 1," said Mark Toney, the network's executive director.

"They want them to start collecting in March, even before the CPUC has held a proceeding and decided whether PG&E should get paid back by rate payers; $2 billion for overspending," Toney continued. "Oh, PG&E has several requests for at least another $3 billion."

Toney explained that the electric company is attempting to get customers to cover costs "for something that has not even happened." He noted that the Utility Reform Network is partnering with legislators to set price increase limits to protect customers.

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