Inflated Profits Will Keep Electric Bills High in '08

The California Public Utilities Commission today bucked a national trend toward lower profits for regulated utilities, guaranteeing inflated profits for PG&E, Edison and SDG&E.  Instead of grabbing the opportunity to lower electric bills throughout California, under today's decision PG&E and Edison will continue to receive profits far above other utilities, and SDG&E will begin collecting inflated profits as well.

"Electric bills must come down," said TURN executive director Bob Finkelstein. "There is no justification for awarding windfall profits that come out of the pockets of hard-working Californians.  The CPUC is out of touch with the national trend toward lower guaranteed profits, and is also out of touch with the struggles many Californians already face to afford essentials like heat, light and hot water."
Electric rates in California are among the highest in the U.S.  Profits for California's utilities are the highest authorized by any utility commission in the past year.  While the national average for utility return on equity awarded in 2007 was 10.28, PG&E, Edison and SDG&E will enjoy 11.35, 11.50 and 11.10 respectively.  "It's a Christmas gift that will keep on giving to the utilities, by continuing to take too much from customers," Finkelstein said.

The Commission, dominated by Schwarzenegger appointees, has approved numerous rate hikes, but has failed to follow through on the Governor's early campaign promises to lower rates.