The California Public Utilities Commission is expected to discuss and may make a decision on Nov. 16 on a proposed rate hike by Pacific Gas and Electric Company. The CPUC originally was set to vote on the proposal Nov. 2, but postponed it for two weeks to allow staff to study the issue further.
Here's a breakdown on what to know about the proposal and how your PG&E bill may be impacted.
Why does PG&E want to raise rates?
PG&E last month made its case to state regulators for hiking rates to adjust for rising operating costs as well as reducing the risks of its operations.
How much does PG&E want to raise rates?
The company was looking to raise rates by about 26%, saying that that accounts not just for inflation but also the high price of wholesale natural gas. On top of that, it wants the extra revenue for risk reduction.
One such project: placing 2,100 miles of power lines underground to reduce the threat of a wildfire being triggered by those lines in high risk areas.
“PG&E has evolved from reacting and responding to events,” PG&E CEO Sumeet Singh recently said to state regulators, “and we are better than that now and you need us to be.”
The two proposals currently on the table would increase the average bill by around 12%.
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Any PG&E rate hike would need to be approved by state regulators
CPUC would need to approve a hike before it goes into effect and has countered PG&E’s plan with a proposal that would include a 13% increase.
How much more will PG&E service cost after a rate hike?
PG&E’s plan could amount to $20 to $31 more per month for the average bill.
