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The former president of the California Public Utilities Commission is criticizing the regulatory agency, claiming its current commissioners are failing to protect consumers from skyrocketing utility bills.”I know what the job of the PUC is, or what it’s supposed to be, which is to protect consumers while we ensure adequate electric and gas service,” Loretta Lynch told KCRA 3 Investigates’ Lysée Mitri during a one-on-one interview. “I believe that this PUC is failing in that job, because they are allowing this enormous bucket of costs to grow and grow without controlling the utilities costs.” PG&E customers saw two rate increases hit their bills this year.”PG&E asked, and the PUC said, ‘Sure, we’ll give it to you,’” said Lynch, describing what she calls a “dangerous trend.” In the first quarter of this year, PG&E announced its earnings rose to $732 million — a jump of more than $160 million over that same timeframe last year. Meanwhile, the average customer saw monthly bills surge by more than $30 in January. That was the first and largest of two increases to take effect this year following approval from the PUC.Much of the increases are meant to cover wildfire prevention projects, like burying miles and miles of power lines underground. “PG&E customers are getting hit with a double whammy,” Lynch said. “It’s all about making wise choices that are cost-effective, that actually prevent wildfires and don’t just plump up PG&E’s profits.” PG&E declined an in-person interview but responded to our questions via email.”The CPUC approved our 2023-2026 General Rate Case in November, 2023, through an open, transparent and public process which included multiple parties and stakeholders. More than 85% of our proposed increased, originally submitted in 2021, was to reduce risk in our gas and electric operations,” said PG&E Spokesperson Lynsey Paulo.The utility said most of its rate increases have been to “reduce risk in gas and electric operations.”In response to KCRA 3 Investigates’ questions about PG&E’s increased earnings, the utility said, “We are reinvesting the vast majority of our profits back into the business to continue making improvements for our customers. More than 99% are re-invested back into the business to improve how we serve customers and support our return to financial health, so that we can continue to attract the investments we’ll need to build the safe, climate-resilient system for customers. Restoring PG&E’s financial health allows us to continue to make operational progress at the lowest cost. We’re on a path to return to investment grade, which would reduce the costs of financing that we pass on to customers.”KCRA 3 Investigates also reached out to each of the CPUC commissioners. None of them agreed to an on-camera interview. On Thursday, the commission will be in Sacramento, voting on another change that could impact PG&E customers. This time it is not at the request of the utility. It is a change that is actually required by a state law. Commissioners will consider a proposal to decrease the price of electricity based on usage while also establishing a fixed charge, reallocating how customers are billed in accordance with Assembly Bill 205.”Our electricity is way out of whack on its price,” said Mike Campbell, the assistant deputy of energy with the California Public Advocates Office.The proposal would cut how much people pay per kilowatt-hour by 5-7 cents, aiming to make it more affordable to electrify homes and cars.It would also shift other costs customers are currently paying for in their usage rate into a flat rate of $24.15 a month instead. It would go toward things, like the cost of the infrastructure that actually connects customers to the grid.| RELATED | Will your PG&E bill go up or down? How a key vote by California regulators could impact you”That fixed charge amount is the same really as what SMUD customers pay,” Campbell said. That means the change would mainly impact PG&E customers in our area. The Public Advocates Office believes the proposal would be an improvement for customers.”Having all of your energy costs be associated with your usage makes it very volatile,” Campbell said. “So, especially if you have a heatwave for a week, you kind of cringe waiting for that bill to arrive.” In addition, the fixed charge will be lower for customers who qualify for low-income assistance programs. For instance, customers enrolled in the California Alternate Rates for Energy (CARE) program will be charged a discounted flat rate of $6 per month while customers enrolled in the Family Electric Rate Assistance Program (FERA) will qualify for a discounted flat rate of $12 per month. This means, overall, they should save on their monthly bills, along with people who use a lot of energy.However, the proposal is designed to be revenue-neutral for utilities, so if some customers save money, then others may pay more. It may mean a bigger bill for those who just missed qualifying for a low-income discount and already keep their power usage to a minimum.”If you’re on the really high end of a bill impact, I’m thinking that’s $7 a month with the super high end but, again, these are customers who are not the low-income customers,” Campbell said.The PUC is scheduled to meet at the Warren Alquist State Energy Building at 1516 9th Street in Sacramento at 11 a.m. Thursday.Should commissioners approve the change, it would take effect starting in 2026 for PG&E customers.See more coverage of top California stories here | Download our app.
The former president of the California Public Utilities Commission is criticizing the regulatory agency, claiming its current commissioners are failing to protect consumers from skyrocketing utility bills.
“I know what the job of the PUC is, or what it’s supposed to be, which is to protect consumers while we ensure adequate electric and gas service,” Loretta Lynch told KCRA 3 Investigates’ Lysée Mitri during a one-on-one interview. “I believe that this PUC is failing in that job, because they are allowing this enormous bucket of costs to grow and grow without controlling the utilities costs.”
PG&E customers saw two rate increases hit their bills this year.
“PG&E asked, and the PUC said, ‘Sure, we’ll give it to you,’” said Lynch, describing what she calls a “dangerous trend.”
In the first quarter of this year, PG&E announced its earnings rose to $732 million — a jump of more than $160 million over that same timeframe last year. Meanwhile, the average customer saw monthly bills surge by more than $30 in January. That was the first and largest of two increases to take effect this year following approval from the PUC.
Much of the increases are meant to cover wildfire prevention projects, like burying miles and miles of power lines underground.
“PG&E customers are getting hit with a double whammy,” Lynch said. “It’s all about making wise choices that are cost-effective, that actually prevent wildfires and don’t just plump up PG&E’s profits.”
PG&E declined an in-person interview but responded to our questions via email.
“The CPUC approved our 2023-2026 General Rate Case in November, 2023, through an open, transparent and public process which included multiple parties and stakeholders. More than 85% of our proposed increased, originally submitted in 2021, was to reduce risk in our gas and electric operations,” said PG&E Spokesperson Lynsey Paulo.
The utility said most of its rate increases have been to “reduce risk in gas and electric operations.”
In response to KCRA 3 Investigates’ questions about PG&E’s increased earnings, the utility said, “We are reinvesting the vast majority of our profits back into the business to continue making improvements for our customers. More than 99% are re-invested back into the business to improve how we serve customers and support our return to financial health, so that we can continue to attract the investments we’ll need to build the safe, climate-resilient system for customers. Restoring PG&E’s financial health allows us to continue to make operational progress at the lowest cost. We’re on a path to return to investment grade, which would reduce the costs of financing that we pass on to customers.”
KCRA 3 Investigates also reached out to each of the CPUC commissioners. None of them agreed to an on-camera interview.
On Thursday, the commission will be in Sacramento, voting on another change that could impact PG&E customers.
This time it is not at the request of the utility. It is a change that is actually required by a state law.
Commissioners will consider a proposal to decrease the price of electricity based on usage while also establishing a fixed charge, reallocating how customers are billed in accordance with Assembly Bill 205.
“Our electricity is way out of whack on its price,” said Mike Campbell, the assistant deputy of energy with the California Public Advocates Office.
The proposal would cut how much people pay per kilowatt-hour by 5-7 cents, aiming to make it more affordable to electrify homes and cars.
It would also shift other costs customers are currently paying for in their usage rate into a flat rate of $24.15 a month instead. It would go toward things, like the cost of the infrastructure that actually connects customers to the grid.
| RELATED | Will your PG&E bill go up or down? How a key vote by California regulators could impact you
“That fixed charge amount is the same really as what SMUD customers pay,” Campbell said. That means the change would mainly impact PG&E customers in our area.
The Public Advocates Office believes the proposal would be an improvement for customers.
“Having all of your energy costs be associated with your usage makes it very volatile,” Campbell said. “So, especially if you have a heatwave for a week, you kind of cringe waiting for that bill to arrive.”
In addition, the fixed charge will be lower for customers who qualify for low-income assistance programs. For instance, customers enrolled in the California Alternate Rates for Energy (CARE) program will be charged a discounted flat rate of $6 per month while customers enrolled in the Family Electric Rate Assistance Program (FERA) will qualify for a discounted flat rate of $12 per month. This means, overall, they should save on their monthly bills, along with people who use a lot of energy.
However, the proposal is designed to be revenue-neutral for utilities, so if some customers save money, then others may pay more.
It may mean a bigger bill for those who just missed qualifying for a low-income discount and already keep their power usage to a minimum.
“If you’re on the really high end of a bill impact, I’m thinking that’s $7 a month with the super high end but, again, these are customers who are not the low-income customers,” Campbell said.
The PUC is scheduled to meet at the Warren Alquist State Energy Building at 1516 9th Street in Sacramento at 11 a.m. Thursday.
Should commissioners approve the change, it would take effect starting in 2026 for PG&E customers.
See more coverage of top California stories here | Download our app.
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