PG&E proposes 5th rate hike for 2024, but why? Here's where money is going

Wednesday, November 27, 2024 5:44AM PT
SAN FRANCISCO -- PG&E customers could see another increase in their utility bills. If approved, this would mark the fifth rate hike this year.

ABC7 News looked into where the money is going and what can be done to curb future increases.

RELATED: State regulators unanimously approve PG&E's 4th rate hike for 2024

"It's death by a million cuts. It's just a nonstop rate hike after a rate hike," said Lee Trotman of The Utility Reform Network (TURN).

Already this year, PG&E has received approval for four rate increases. The most recent hike added an average of $6 to customer bills. Now, the utility is proposing another increase of $4.33 per month to cover $592 million in vegetation management costs.

Rising Costs for Customers



"Right now, you're paying an average of $50 more than at the beginning of the year," Trotman said.



Rates have been rising for years. A California Public Utilities Commission (CPUC) graph shows that PG&E's average customer bill has doubled between January 2018 and January 2023.

"It's so expensive to live in California, period. You add these ever-increasing electric bills, and it's not sustainable," said state Sen. Scott Wiener, a longtime advocate for PG&E reforms.

RELATED: After rate hikes this year, PG&E announces nearly 25% increase in profits to $2.2B for 2023

Calls for Reform



In 2020, Wiener authored a bill to explore a public takeover of PG&E, citing years of inadequate infrastructure investment that contributed to wildfires and other issues.



"This all stems from PG&E's failure over many, many years to invest in basic infrastructure," Wiener said. "The company has... a real problem."

In 2023, Wiener proposed legislation to expedite utility connections for new developments, including public parks and homeless shelters.

PG&E declined an on-camera interview but stated that the proposed funding would allow the company to connect to 13,000 new customers this year, compared to 9,800 in 2022.

What Can Customers Do?



TURN encourages customers to voice their concerns at public hearings. When asked about legislative action, Wiener noted, "The legislature and the governor certainly have the power to set rules around rates and direct the CPUC. The question is whether the legislature has the political will to do that. PG&E and their supporters still hold significant power in Sacramento."



The CPUC is set to consider the latest rate increase on Dec. 19. If approved, PG&E says the hike won't appear on bills until 2026.

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