Dive Brief:
- Customers of Pacific Gas and Electric (PG&E) are preparing for possible sticker shock, reports The Mercurcy News, as the utility is proposing an electric rate increase and other charges are about to start showing up on customer bills.
- Prior to this week, the newspaper reports an overall residential bill averaged $145.36, but after increases that went into effect Monday and other possible impacts are tallied, bills could exceed $158/month, if electric and gas rates increase are approved.
- The gas service increase which went into effect this week will cost customers almost $7/month, roughly a 14% increase.
Dive Insight:
Rates are going up for customers of PG&E, but the utility stresses that its rates remain below the national average.
However, "at some point the piggy bank will be empty, and the ATM will have insufficient funds," Mark Toney, executive director with The Utility Reform Network, told the Mercurcy News. "There is a limit to what people can take."
In June, the California Public Utilities Commission approved a $193 million 2015 revenue increase for Pacific Gas & Electric's gas transmission and storage business, a 27% increase over 2014 levels. That meant the average gas customer would see monthly rates rise from almost $51 to $57. There is some relief in sight—in signing off on the increase, regulators noted those amounts will decrease after $850 million in penalties related to the 2010 San Bruno pipeline disaster are implemented in the next phase of the case.
The rate increase reflects the cost of keeping the "massive" gas system safe, according to CPUC Commissioner Carla Peterman, who authored the commission's decision.
The utility is also telling regulators it needs an electric rate increase.
"We have requested these funds to invest in advanced technology and infrastructure so we can better provide our customers with safe and reliable energy and support California's clean energy goals while keeping bills as low as possible," PG&E spokesman Donald Cutler told the newspaper.
Last week, the utility asked the Federal Energy Regulatory Commission (FERC) to approve higher power rates to finance transmission; those charges could add almost $2 more to customer bills.
