Fresno hearings on PG&E rate hike request

FRESNO, Calif. (KFSN) -- PG&E's California pipelines have been under scrutiny since the massive gas explosion in San Bruno four years ago.

The utility company now wants to charge rate payers to make sure the statewide pipeline network is safe.

Company spokesperson Evelyn Escalera says the proposed one billion dollar rate increase is needed to: "Help maintain and modernize our gas transmission system, approximately 6,700 transmission pipelines are included in that. So from testing to modernizing vintage pipelines. Making sure they system is safe and reliable for our customers."

PG&E says the average gas bill would rise about $5.00 a month if the state public utilities commission approves. But there is opposition.

Mindy Spatt, of TURN, The Utility Reform Network told us by phone from San Francisco the increase is not justified. "We don't think all of these increases are necessary for safety and reliability. We think they are being used to fix mistakes PG&E made in the past. Those mistakes should be paid for out of profits, not rates."

The utility just won a more than two billion dollar rate increase from the Public Utilities Commission, or PUC, last week. The company says that will raise rates for average customers by about $7.50 a month, starting next month. If approved this next hike would hit at the first of the year.

Myra Diaz a consumer advocate for Fresno's Centro La Familia says these hikes hurt the unemployed and poor: "Also it's a lot of senior citizens on fixed incomes they can't afford any increase they already have their budget for their monthly expenses and increasing it is going to make it even harder for them to afford groceries."

The Public Utilities Commission is holding two hearings on the latest proposed PG&E increase on Tuesday at Fresno City Hall. Spatt urges the public to attend.

"Organizations that have received money from PG&E will come in and defend the company when it asks for rate hikes," said Spatt. "The problem is consumers are not speaking out enough. In order to stop these rates hikes we need to let the PUC know that we object.

The PUC meetings will be Tuesday at 11 in the morning and 5:00 in the evening in the council chambers at Fresno City Hall.