PGE Finally Said Why It’s Really Raising Rates This Year

Pacific Gas and Electric has consistently raised rates here in the Bay Area over the last several years.

Locals in Walnut Creek County, California, have reported paying over $2,700 for their PG&E bill. Personally, I’ve had bills as high as $1,500.

With the previous rate increases, PG&E has usually highlighted wildfire risks or investment in infrastructure as the reason for the spike.

Now, though, they’re no longer making those allusions. The company sought yet an additional rate increase from California’s power regulators.

The reason for the increase? PG&E wants to make more money.

I wish I was joking, or perhaps exaggerating. But that truly is the reason PG&E is asking to raise rates for Bay Area customers yet again.

The utility wants to create more profit for its investors. The increase in rates would mean more money coming in, which would go out to the people who have invested in the utility.

Many locals don’t realize this, but PG&E is a private company, not part of California’s government. That means it is beholden to shareholders and has to generate money for them.

So, is this a reasonable ask? For most Bay Area residents who have already suffered through multiple rate hikes in the last few years, the answer is almost definitely an emphatic no.

It’s also unclear whether the increase is genuinely needed. PG&E shareholders already enjoy some of the highest profits of any investors in utilities in the country.

PG&E argues that it has to continue to offer good value to its shareholders in order to seek the investment it needs to upgrade infrastructure and continue wildfire risk management.

To Bay Area families stuck paying thousands in electric bills, that’s likely to be little comfort.