Heat is dwindling, but the cold is coming soon. With PG&E prices, the Central Valley better bundle up.
Pacific Gas and Electric (PG&E), an investor-owned utility company that powers millions of households across the majority of Northern and Central California, will be raising its prices for the fourth time this year—all while basking in record profits.
On Sept. 12, the California Public Utilities Commission (CPUC) swiftly cleared another rate hike for PG&E with a 4-0 vote on its “consent agenda”—a procedural move that bypassed any discussion or debate. Consent agendas are a collection of items that are grouped together for approval without discussion during a meeting, typically because they are considered noncontroversial or routine; it’s done this way to save time.
Raising prices for the electric bill of three-quarters of the state doesn’t seem like something routine that should be passed quickly in a meeting.
Despite still having the last quarter of the year left, PG&E has already raised its prices four times this year. The first rate increase took place at the beginning of the year. In January, it raised bills by 12%–13%, adding around $32.50 per month. A second increase in March added $4–$5 per month, followed by a $6 per month rise in September. The October increase, also $6 per month, was approved on Sept. 12.
PG&E plans to offer a $55 one-time climate credit for some relief in October, as well as a 9% temporary rate cut that kicked in this July. One-time and temporary being the keywords. Its claims to want to help people and lower prices are contradicted by the four price hikes approved this year alone. Moreover, these minuscule price breaks have failed to keep up with PG&E’s total price hikes.
PG&E did have the REACH (Relief for Energy Assistance through Community Help) program to assist low-income customers facing financial hardship with overdue bills. It was designed to help cover past-due bills so that customers’ service wouldn’t get cut off.
The REACH program offers a one-time (per year) credit of up to $1,000 to low-income households struggling with past-due energy bills, while REACH Triple Match expands this assistance. Under Triple Match, moderate-income customers can also qualify, and any payment made is matched threefold—up to $1,000 in total credits. REACH and REACH Triple Match are funded through donations from PG&E customers, employees and shareholders that the Salvation Army oversees and allocates to low-income individuals struggling with past-due energy bills.
Unfortunately, this financial assistance program is out of funds and stopped taking applications at the end of August. PG&E is confident that it can still help customers who applied before August, but there is no current information on when or if the REACH program will be able to help other customers that need assistance now or down the line.
According to PG&E, it has provided more than $17.2 million in “financial assistance” to more than 25,000 low-income customers through REACH and REACH Triple Match programs since January. Surprisingly, a large portion of that support has been given to Fresnans.
“Since January, more than 3,500 applications have been approved in Fresno County, resulting in more than $2 million in financial assistance, marking the highest amount in PG&E’s service territory,” according to PG&E’s website. If an entire county is already struggling to keep up with basic bills, surely that’s a sign not to increase rates.
Why have there been so many price hikes this year?
PG&E claims that it needs to cover the cost of damages from storms, wildfires and other catastrophic events aside from maintaining and updating its energy grid and systems. It plans to cover 55% of those “damages” costs from you, the ratepayer.
This seems unfair and unnecessary considering PG&E prices are reportedly well above inflation and that the company has seen record profits this last year. In February, PG&E announced a nearly 25% spike in profits for 2023, approximately a $2.2 billion increase.
PG&E CEO Patti Poppe alone earned nearly $17 million in total compensation for 2023. This included a $1.4 million base salary, $3.45 million in bonuses and $11.75 million in stock awards. That is a few million more than the $14.1 million she earned in 2022.
The public reaction to the multiple price increases has been beyond negative, and not without reason. Cost of living across the country is increasingly difficult to cover and price hikes on basic bills only make matters worse.
People are struggling just to make ends meet. The CPUC has received plenty of backlash over its votes in support of the multiple rate raises; its Google review page is littered with angry ratepayers accusing the entity of corruption.
One such comment by Heath Shine stated, “Corruption at its finest. PG&E and the CPUC leadership should be in jail for bleeding Californians dry.”
Many Californians have begun organizing protests against raised prices. One such grassroot movement is called Stop PG&E, which aims “to create a more equitable society where access to essential services is not determined by wealth or privilege.”
Stop PG&E (stoppgenow.com) has held several protests at the Capitol with more planned this month. On Oct. 5, Stop PG&E will protest at the State Capitol at 11 a.m. On Oct. 18, it will hold the Flip the Switch event, asking those who can to turn off their breakers from 6 a.m. to 9 p.m. in a symbolic gesture. People are asked to do this only if it is safe and accessible for them to do so.
