PG&E customers will be hit with another 9% rate increase early this year, according to an article in siliconvalley.com. The estimated changes in average electric and gas rates are part of PG&E’s “annual true-up” with the California Public Utilities Commission (PUC).
PG&E states that the hike in monthly bills is primarily due to their efforts to reduce deadly and catastrophic fires. There have also been some major PG&E events causing the increase:
- A series of fatal and destructive fires in Northern California over the past several years started by PG&E equipment.
- A gas explosion that killed eight people and destroyed a neighborhood in San Bruno in 2010 also caused by PG&E equipment.
Aside from PG&E-caused rate hikes, energy markets have also substantially raised commodity prices for natural gas and electricity.
What Does This Mean for You?
Wondering what this means for you? Here are some examples of what PG&E customers can expect:
- A 9.4% increase in combined electricity and gas bills. The average monthly ratepayer bill will increase to $221 from $202 last year.
- An 8.6% increase in electricity bills. The average monthly ratepayer bill will increase to $152 from $140 last year.
But Wait, There’s More!
The PUC is reviewing a separate matter that might increase monthly utility bills by an additional unspecified amount. This increase would also happen at some point during 2022.
Here’s the Rub
According to macrotrends.net, PG&E has had a record-breaking increase in revenue for 2021. For the quarter ending September 30, 2021, revenue jumped 11.94% year-over-year to $5.465B. Their twelve-month total revenue for the same ending period was $20.144B, a 9.1% increase.
In 2018, PG&E’s annual revenue was only $16.759B. That means that their annual revenue has grown by $3.385B in the three-year period. With such a healthy bottom-line, the question begs to be asked, “Why do PG&E’s customers have to shoulder the burden?”
Tired of Paying Ever-Increasing Electricity Rates?
Don’t buy into PG&E’s narrative that you are doing your part in preventing future fires by paying higher electricity rates. Not so. You are paying higher rates to line their pockets. Take a stand by going solar.