PG&E Says Energy Bills Will Increase this Winter

Many people received an “important update” from Pacific, Gas & Electric (PG&E) Tuesday which shared energy bills are going up this winter.

The increase would be approximately $3.40 per month on the average customers bill in 2023-26. Under the two plans, it would allow PG&E to increase revenue by 13% — PG&E had requested 26%.

While PG&E says bills would go up by $3.40, the Utility Reform Network, who advocates for ratepayers, says the monthly average bill increases are $24-26 by 2026.

Two Proposed Decisions Released

On September 13, the California Public Utilities Commission (CPUC) released two proposed decisions in response to Pacific Gas and Electric Company’s (PG&E) request for new safety and reliability investments in its service area. The proposed decisions, which are part of PG&E’s General Rate Case (GRC) covering its operational and infrastructure costs for 2023-2026, strike a balance between strengthening the electric grid for the future and affordability.

“PG&E’s job is to propose a four-year budget, including its plans for the activities it needs to carry out to deliver safe and reliable services to its customers,” said CPUC Executive Director Rachel Peterson. “Our job by the end of the proceeding is to reach a proposed decision on the services and initiatives PG&E should commit to over the next four years, and the amount of money it can collect from its customers to cover the cost.”

PG&E requested $15.4 billion for 2023; both the PD and APD cut that amount substantially, by $1.6 billion and $2.1 billion, respectively. The PD sets 2023 costs at $13.8 billion, marking a 13.1 percent increase compared to PG&E’s authorized 2022 revenue requirement. Meanwhile, the APD sets 2023 costs at $13.3 billion, reflecting a 9 percent increase from the authorized 2022 revenue requirement.

2023 GRC Overview

PG&E filed its 2023-2026 GRC Application (A.21-06-021) on June 30, 2021, and subsequently submitted modifications on March 10, 2022 and September 6, 2022. PG&E’s Application claims that it needs to make several changes to ensure the safety and reliability of its energy services, especially given the challenges posed by climate change. The top drivers of PG&E’s proposed increases are inflation and significant investments in undergrounding electric lines to decrease wildfire risk. Read more in the fact sheet below.

• Sept. 13, 2023: Proposals issued in PG&E’s 2023 GRC – Press Release
  • Frequently Asked Questions About GRC and Sept. 13 Proposals
  • Proposed Decision
  • Alternate Proposed Decision
• Fact Sheet explaining the 2023 GRC – Dec. 9, 2022
• Docket Card (proceeding documents)
• PG&E’s GRC Webpage
• Watch the CPUC’s video about GRCs

Here is what PG&E said Tuesday:

Per PG&E, why are the bills increase?

Undergrounding powerlines
Undergrounding powerlines 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

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 powerlines. 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.

Grid capacity and resilience
Investments in innovative solutions will allow us to improve the electric system to support more electric vehicles, battery storage, and make the electricity more reliable for everyone during extreme weather.

These actions will make our customers safer for generations to come. We understand rate increases impact our customers and we are committed to completing this critical safety work as strategically and cost-effectively as possible.

How does the process work?
Here is a summary of how rates are determined so you can understand where we are in the process. We will communicate again after the California Public Utilities Commission (CPUC) issues a final decision and we know how and when your bill will be impacted.

• Budget Billing provides more predictable monthly energy costs by averaging your energy costs over the previous 12 months to determine a monthly payment amount.
• Payment Arrangements can help you schedule payment of your current balance over several months to help manage temporary financial strains.
• A different electric rate plan could save you money. Review your personalized rate comparison at pge.com/myrate

To learn about all the programs that can help you manage your energy costs, visit pge.com/programs.

Previous Stories

• March 7 – PG&E Customers’ March Natural Gas Bills Expected to Decrease on Average 75%
• Feb 16 – PG&E Customers to Receive Over $55 Million in Bill Credits Through New Incentive Program