Pacific Gas & Electric (PG&E) has now announced that rates for gas and electric service will be higher this winter. While Alameda’s electricity is supplied by Alameda Municipal Power at lower rates than PG&E charges its customers, the Island City’s gas is supplied by PG&E, at rates that have ballooned in recent years/fire seasons.
[1]
PG&E sent a forewarning to customers this week, stating, “We are communicating with you now so you can understand why and prepare for higher bills.” The notice also said that the utility does not yet know the amount of the increase because “the state regulatory process for determining rates is still ongoing and dependent on approval from our regulator.”
The California Public Utilities Commission released two rate proposals last week, but could not say what the increase would be for the average residential customer. According to an Associated Press (AP) report [2], it is likely to be far less than what PG&E initially requested—the company asked for rate increases large enough to boost its revenue by 26%. The CPUC issued two proposals that would increase revenue by half that amount or less.
[3]Since 2017, the utility has been blamed for more than 30 wildfires that wiped out more than 23,000 homes and businesses and killed more than 100 people, according to an NBC News report [4]. One of the stated reasons for the rate increase is to pay for burying about 2,100 miles of power lines to help prevent future wildfires. However, the Utility Reform Network has argued that a faster and cheaper way to reduce wildfire risk is to insulate power lines instead of burying them.
The California Public Utilities Commission apparently agrees. Both of its proposals would allow for insulating more power lines and burying fewer of them, according to the AP report. One proposal would increase PG&E’s revenue by 13%. The other would increase PG&E’s revenue by 9%. The commission is scheduled to consider the proposals during its November 2 meeting.
Excerpts from the advance email PG&E sent to its customers
Why are bills increasing?
“We are investing now for a safer and more resilient energy future. This upcoming rate increase, if approved, will fund critical electric and gas programs to make our energy systems stronger and more reliable against the effects of extreme weather, like winter storms and hotter summers.”
Editor’s note: PG&E did not cite a single critical gas program that would be covered by the current rate hike, despite the utility’s history of pipeline explosions, including the deadly 2010 San Bruno explosion that destroyed 38 homes, damaged 70, killed eight people, injured dozens more, and forced an entire neighborhood to evacuate. In 2017, PG&E was convicted of six felony charges connected to the San Bruno pipeline explosion. (ABC News [5]) In 2018, the California Public Utilities Commission found that PG&E had violated rules requiring utilities to locate and mark natural gas pipelines and then falsified data “so requests for pipeline locating and marking would not appear as late.” (Los Angeles Times [6])
Undergrounding power lines
“Undergrounding power lines reduces wildfire risk by nearly 98% and permanently eliminates some of the annual costs for vegetation management and maintenance. PG&E has proposed to underground 2,100 miles of powerlines in the highest wildfire risk areas for about $3.40 additional per month on the average customer’s bill in 2023-2026.”
Wildfire risk reduction
“We are delivering multiple layers of protection as part of our wildfire safety efforts to keep our customers safe. This work includes strategically moving lines underground, and installing stronger poles and covered power lines. All together, these layers of protection, including safety power shutoffs, have reduced wildfire risk from our equipment by over 90% and represent our ongoing commitment to reduce the threat of wildfires.”