The price of electricity is going up again for millions of customers in California.
On Thursday night, the California Public Utilities Commission (CPUC) approved two more rate increases proposed by Pacific Gas and Electric (PG&E), the fifth and sixth greenlighted for the utility this year. One rate increase will go into effect next year and the other in 2026.
“PG&E is working to stabilize bills and limit average annual combined gas and electric bill increases to no more than 2-4% through 2026,” PG&E said in a statement identical to the one delivered after its last rate hike in October.
CPUC also approved a rate increase request from San Diego Gas and Electric (SDG&E) that customers will start to see on their bills in 2025. Electricity bills will increase by an average of 2.6% and gas bills by around 1.8%.
SDG&E spokesperson Anthony Wagner said CPUC’s decision marks the culmination of a process lasting more than two years.
“Since day one, SDG&E has been laser focused on securing a positive outcome for customers that minimizes bill impacts while advancing safety, improving reliability and supporting the clean energy transition,” he said in a statement. “We believe this decision strikes the right balance, allowing SDG&E to more affordably provide the service our customers deserve and expect.”
PG&E says its two new latest rate increases are intended to pay for the extended use of the Diablo Canyon Nuclear Power Plant in San Luis Obispo County and for vegetation management. SDG&E’s increase was levied in order to maintain the safety, reliability, and efficiency of the utility’s natural gas transmission, distribution, storage systems, electric distribution, and generation systems through 2027.
According to watchdog group The Utility Reform Network (TURN), PG&E customers are already paying an average of $50 more right now than they were at the beginning of the year. The CPUC indicates the average PG&E bill has climbed 56% over the past three years alone.
PG&E customers may feel particularly sour over the utility taking more out of their pockets considering the utility just received a conditional commitment for a low-interest loan guarantee of up to $15 billion from the Department of Energy’s Loan Program Office for Project Polaris, which was submitted to the feds for consideration in June 2023. If finalized, the loan guarantee will support a portfolio of projects to expand hydropower generation and battery storage, upgrade transmission capacity through reconductoring and grid-enhancing technologies, and enable virtual power plants throughout PG&E’s service area. PG&E says the loan will help it meet forecasted load growth, increase electric reliability, and reduce costs for its rate base.
