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Will ratepayers will be on the hook for HECO's wildfire costs?

Source: Hawai’i Public Radio | By Savannah Harriman-Pote

Still, securitization may not be a bad deal for ratepayers, said Mark Toney, the executive director of The Utility Reform Network, a California-based consumer advocacy group. "Just think about the difference between the people who got their home loans at 3% or less and people today who are having to pay 7% or more. The same house, your payments are double what they are. So it's kinda like that, it's the same principle," Toney told HPR. But Toney added that ratepayers should never be on the hook for utility negligence. If that’s the case, he said “there has to be a guarantee that shareholders reimburse the ratepayers in real time.” The Utility Reform Network has been involved in one of the largest securitization cases in the country with Northern California electric utility PG&E, which took out $7.5 billion in ratepayer bonds to pay costs related to the 2017 California wildfires. However, he said, California law does not allow a utility to make ratepayers pay for wildfires started due to the company's negligence. "If you look on a PG&E bill and you open it up when it comes in the mail, you will see a line item that talks about repaying the bond as a bill, but there will be a bill credit for the exact same amount, which represents the shareholders reimbursing the ratepayers in real time."

The brushfire that destroyed Lahaina last year was one of 28 weather and climate disasters in 2023 that cost a billion dollars or more in damages. Electric utilities face increasing expenses related to extreme weather events like hurricanes, ice storms and wildfires. Several utilities, including Hawaiian Electric, have eyed ratepayer-backed bonds as a possible avenue to recoup some of those costs.

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CPUC Unanimously Approves New PG&E Rate Hike to Cover Wildfire Mitigation Projects

Source: ABC 7 News | By Lena Howland

"I think that is disrespectful to customers, and that the commissioners owe it to the customers to explain their vote for yet another increase," Mark Toney, executive director of TURN said. Toney, executive director of TURN, The Utility Reform Network, points out that this increase is on top of the hike that already went into effect on Jan. 1, which averaged around $38 a month per customer. This is despite the utility reporting last year's profits surged to more than $2.2 billion, a jump of almost 25%. “It doesn't make any sense for PG&E to keep crying poor when the fact is, they are more profitable than they've ever been in their history, it is not right," he said.

On Thursday, the CPUC voted again to allow PG&E to raise rates in a 4-0 vote, expected to take effect in April. This comes after a rate increase just went into effect on Jan. 1.

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PG&E Seeks Break on Part of a $1 billion Payment to Wildfire Bailout Fund

Source: NBC Bay Area | By Jaxon Van Derbeken

“We’re talking about a company who, in 2023, $2.5 billion to shareholders? PG&E has the money,” said Mark Toney, executive director with the ratepayer advocacy group TURN. “You have no reason to cry poor when we have given you rate increase after rate increase after rate increase.” “These new investors are going to want a return on their investment,” adds Toney of TURN, “and they're going to want a return that's much higher than the regulated rate of return.” But Toney is skeptical of the company's claim - saying partial private ownership could make the utility vulnerable to market pressure and other unknowns. In the end, he says he believes, utility customers could end up paying for more bailout costs instead of utility shareholders. “PG&E is leading with love, the love of money,” Toney said. “The situation right now is that ratepayers feel all the pain and the shareholders are reaping all the gain.”

Despite profits of more than $2 billion last year, PG&E recently told regulators that it is in such a financial bind that it needs more time to make a $1 billion payment. Ratepayer advocates were quick to dismiss the idea that PG&E is facing an actual financial pinch. Those advocates believe the utility's customers are the ones in a real financial bind - thanks to a recent string of rate hikes.

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California Legislators Introduce Bills to Enhance Wildfire Safety Measures

Source: KQED | By Danielle Venton

“The bill was ‘right on target in terms of telling the utilities and telling the Public Utilities Commission that we need to find the least cost solutions…”

California has enjoyed a few relatively quiet wildfire seasons, but lawmakers are still focused on lowering the state’s risk and have introduced a number of fire-focused bills in the last few weeks…

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Phone Companies Want to Eliminate Traditional Landlines. What's at Stake and Who Loses?

Source: USA Today | By Betty Lin-Fisher

If California allows the waiver for AT&T, it becomes a slippery slope for other states, said Regina Costa, telecommunications policy director for The Utility Reform Network (TURN) in California and chair of the telecommunications committee for the National Association of State Utility Consumer Advocates. “I think the nation is watching California very closely,” said Costa. “Is there a replacement that will guarantee service to all customers and guarantee reliable service?” That service needs to be available to all customers at a reasonable cost, said Costa. “Customers really get squeezed with service offerings and price increases” for alternatives, she said.

The California Public Utilities Commission is considering an application by AT&T to waive its responsibilities to be what’s called “Carrier of Last Resort,” meaning the utility has to offer the copper-wire landline service. The utility said in filings with the commission that the technology for the traditional landlines is old and demand is low. The utility and many of its peers have been petitioning state utility commissions and state legislators, asking to be relieved of the task of maintaining and offering the traditional landline service.

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Millions in California Could Lose their AT&T Landlines. Here’s Why

Source: San Francisco Chronicle | By Annie Vainshtein

“What AT&T is seeking is really, really profound,” said Regina Costa, telecommunications policy director for The Utility Reform Network. “By removing that obligation, that means there is no one that can guarantee service for a customer.”

An effort by AT&T to pull out of its obligations to offer landline services across a huge swath of California — including most of the Bay Area — has raised impassioned safety concerns among residents worried about what might happen if they lose access to their traditional wired phone lines, especially in the event of a natural disaster or other emergency. As the designated “carrier of last resort” in California, the telecommunications giant has long been required to provide basic phone services to people who want them, as required by state law. Such services are cheap, ubiquitous and heavily regulated.

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Supervisors May Rally Residents to Fight Yet Another Big PG&E Increase

Source: Manteca Bulletin | By Dennis Wyatt

"Every increase that you hear about is just the tip of the iceberg,' The Utility Reform Network executive director Mark Toney said. "And every increase that gets approved by the California Public Utilities Commission stacks on top of each other. TURN noted PG&E is asking the CPUC to allow them to start collecting the additional $2 billion on an interim basis in March before the rate request completes the required regulatory review process.

PG&E’s record $13.5 million rate hike granted in mid-November was bad enough, as far as San Joaquin County Supervisor Robert Richman is concerned. But the utility’s request less than a month later for another $2 billion rate hike crossed over into being “outrageous” and is not reasonable or acceptable, according to Rickman. It is why Rickman who represents Ripon, rural south Manteca, Tracy. and Mountain House is asking his colleagues on the Board of Supervisors when they meet Tuesday to register official opposition to the proposed rate hike with the California Public Utilities Commission.

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Undergrounding all Utilities in SF is Nearly Impossible, According to Officials: Here's Why

Source: ABC7 News | By Lyanne Melendez

"San Francisco is not as volatile as some of these areas that have burned recently," said Mark Toney from The Utility Reform Network, commonly known as TURN.

Undergrounding overhead utilities has a long history in California that dates back to 1967. In fact, the city of San Francisco has put roughly half of its utility lines underground. But today, PG&E says there is no money left to underground the rest of San Francisco, much to the disappointment of homeowners.

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Controversial PG&E Settlement Delayed

Source: Santa Rosa Press Democrat | By Marisa Endicott

Mark Toney, executive director of The Utility Reform Network, a utility customer advocacy group, said ratepayer representatives used to have greater insight and play a bigger role in such accountability processes, but public participation and oversight has become more limited. “It’s a new pattern, and one which we are pretty unhappy about,” Toney said. The organization also voiced concern about a 2021 settlement between the CPUC’s Safety and Enforcement Division and PG&E over the 2019 Kincade Fire, calling the deal “an abandonment of transparency and opportunities for public input.”

California Public Utilities Commission officials have again put off deciding whether to approve a controversial settlement with Pacific Gas & Electric Co. over its role in the 2021 Dixie Fire, the second largest wildfire in California history. Commissioners were set to vote on the deal Thursday after delaying a decision in late November in order to gather more information. On Monday, however, regulators again bumped a vote, this time to Jan. 25. A CPUC spokesperson said the new delay was based on a need for “further review.” The agreement reached between PG&E and the CPUC’s Safety and Enforcement Division would penalize the utility giant $45 million, with $2.5 million going to the California General Fund and $2.5 million going to Indigenous tribes affected by the Dixie Fire.

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Power Play: No Limits Mean PG&E May Raise Rates Again for Northern and Central Californians

Source: Capital and Main | By Mark Kreidler

“Talk about audacity – not only do they want to charge for what they didn’t get authorization to spend ahead of time, but they also want to collect most of the money before the commission even authorizes the retroactive amount,” said Mark Toney, head of the utility reform network TURN, which provided Capital & Main with several documents related to PG&E’s multiple requests for rate increases. “It’s certainly significant.” Toney estimated that customers will see at least $12 per month and as much as $20 per month added to their bills if the CPUC approves this latest rate hike and early collection plan. Added to the new $33 monthly increase, average annual bills could jump between $540 and $640 this year alone. Toney said that PG&E’s ultimate goal is to recover all of that overspend on the backs of its ratepayers, one hike at a time — one reason TURN is pushing for a cap on the percent of increase a utility can ask in any given year. “There simply can’t be no limits to what they can ask for,” the advocate said, but that is exactly what is in play here in 2024.

Only a few weeks after receiving approval from the California Public Utilities Commission for that roughly $400 annual rate hike late last year, PG&E went right back to the well. In a Dec. 1 filing, the utility asked the CPUC for permission to pass along another $2 billion in cost overruns as part of its ongoing process of updating wildfire mitigation and repairing storm damage.

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Latest Proposed PG&E Rate Hike Could Push Average Monthly Bill Over $300

Source: CBS News | By John Ramos

"These rate increases are completely out of control," Toney said. "We have a system that is broken, where there are no limits to how much PG&E can ask for or how many times a year they can ask for it." TURN is advocating that utility rates be capped at the rate of inflation of Social Security. In a statement, PG&E said, "...we're aggressively focused on finding new ways to work so that we can keep future bill increases at or below a broader, long-term inflation rate of 2% to 4%." But Toney said he thinks utility bills should only deal with delivery of power, and that other costs like wildfire mitigation should be paid through the state budget.

Homeowners across the Bay Area have seen their power bills climbing, but the latest request for an increase will reach a historic milestone -- more than $300 for the average monthly PG&E bill. "Shocking, maddening and frustrating!" That's how Janet Kimball described the utility bill for her Pleasant Hill home.

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PG&E Average Monthly Bills are Set to Top $300 for the First Time

Source: Silicon Valley | By George Avalos

The state PUC should act to rein in soaring PG&E bills, in the view of Mark Toney, executive director of the consumer group, The Utility Reform Network (TURN). “The current system that sets no limits on rate increases needs to be replaced by a cap on annual bills, set at the cost-of-living adjustment provided by Social Security,” according to a web post by TURN.

PG&E’s request to raise rates this spring — in part due to wildfire prevention work — are poised to propel utility bills past a grim milestone: Charges are slated to average more than $300 a month for the first time. This month, bills for the typical residential customer climbed to $294.50. That’s already the highest average monthly bill ever for PG&E customers.

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PG&E and State Farm Increase their Rates in the Bay Area

Source: Telemundo Bay Area | By Bob Redell, NBC Bay Area, & Libertad Pedraza

Ratepayer advocacy group TURN said PG&E could ask customers to refund them. The rate increase already approved will increase the average PG&E bill by $34. PG&E is also separately requesting another increase in March. If that passes, the average bill could rise again by $24. PG&E could also request another increase of about $43 a month. That brings the total to $100 more for the average monthly bill. "The California Public Utilities Commission is in charge of reviewing every rate increase request and, unfortunately, has repeatedly sided with Wall Street investors instead of regular customers," said the CEO of TURN, Mark Toney. "That's why bills have skyrocketed so much in recent years."

PG&E has raised its rates and now the state's largest home insurer is about to do the same. State Farm, which insures about one in 10 to 11 homes in the Bay Area and the rest of California, has received approval from the state Department of Insurance to increase rates by an average of 20% per homeowner.

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PG&E Becomes California's Most Expensive Power Provider

Source: NBC Bay Area | By Jaxon Van Derbeken

“We have an extremely bad problem on our hands,’’ said Mark Toney, head of The Utility Reform Network (TURN), a ratepayer advocacy group. He says the utility is playing catchup on rates, having spent far more than authorized for tree cutting and other efforts to reduce wildfires between 2020 and 2022. According to an accounting PG&E submitted to state regulators for that three year period, the utility spent $9.3 billion more than the $4.7 billion allotted in rates by the California Public Utilities Commission for vegetation management.

PG&E has filed paperwork with regulators to raise rates another $24 a month, for the average customer, in March, to pay for storm repairs and more wildfire mitigation costs. On top of that, according to a chart PG&E recently showed shareholders, the utility indicates it intends to seek even more, to recoup billions it already spent.

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PG&E Customers in Oakland Grapple with Steep Utility Bill Increase

Source: BNN Breaking | By Olalekan Adigun

The Utility Reform Network (TURN), a notable consumer advocacy group, has been vocal in its criticism of the rate hikes. It argues for the need for regulatory caps on rate increases and advocates for a system where they are tied to cost of living adjustments, akin to those in place for Social Security. The group asserts that this approach could mitigate the financial strain on consumers, particularly those in lower income brackets.

As the dawn of 2024 broke, residents of Oakland woke up to an unwelcome New Year’s surprise: a hefty surge in their monthly electric and gas bills. In the face of public outcry, PG&E defends the rate increases, claiming they are necessary to fund essential improvements to their energy systems. The aim is to reduce wildfire risks and enhance safety and reliability for all users. These ambitious improvement plans include burying powerlines in fire-prone areas and replacing aging gas pipelines, among other measures.

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PG&E Electric and Gas Monthly Bills Hop Over $290 Mark to Start 2024

Source: The Mercury News | By George Avalos

Regulators, and potentially lawmakers, must act to rein in soaring PG&E bills and take steps to ensure they are in line with the overall inflation rate, in the view of Mark Toney, executive director of The Utility Reform Network, or TURN, a consumer group. “The current system that sets no limits on rate increases, needs to be replaced by a cap on annual bills, set at the cost of living adjustment provided by Social Security,” TURN, a consumer group, states on its website. Adjustments for the cost of living are typically tied to a benchmark for inflation.

PG&E monthly bills are expected to average roughly $294.50 a month for the typical residential customer who receives combined electricity and gas services from the utility behemoth, according to estimates provided by the company to this news organization. That combined bill is 22.3% higher than the average monthly charges that went into effect about a year ago, at the start of January 2023, when combined bills were $240.73 for the typical residential customer.

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PG&E Is Raising Monthly Rates Even Higher in 2024

Source: The San Francisco Standard | By Kevin Truong

Mark Toney, the executive director of The Utility Reform Network, a consumer advocacy group, said the lack of limits on rate increases is leading to a squeeze on a critical service for customers. "There's no limits on much PG&E can ask for and how many times a year they can ask. There's also no limits on how much [regulators] can authorize," Toney said. "That's why they can ask for another rate increase just weeks after they already received one." Toney's group is pushing for a limit cap on increases that are set at the cost-of-living allowances provided by social security.

Starting Jan. 1, the typical PG&E electricity and gas customer will see their monthly rates rise about $34.50—13%—compared to current bills. That works out to $414 more in utility payments for the year, which would mark a historic increase.

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Rising Utility Costs Compound California's Housing Crisis

Source: KQED | By Vanessa Rancaño

Many people who lose access to utilities end up moving in with others, restarting their utilities under someone else’s name, or leaving the state, said Mark Toney, executive director of the consumer advocacy group The Utility Reform Network. “But some of those people absolutely do end up homeless,” he said.

A quarter of California households reported being unable to pay their utility bills in October, according to a Census survey, resulting in what Columbia University public health professor Diana Hernández and others call energy insecurity, or the “heat or eat dilemma.” “It’s almost like a game of Russian roulette,” she said, describing the monthly juggle low-income families face. “Today’s unpaid energy bill is tomorrow’s eviction notice. And that cycle is a very real one.”

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Diablo Canyon, the Last Remaining Nuclear Power Plant in California, Gets a Lifeline

Source: The San Diego Union-Tribune | By Rob Nikolewski

The Utilities Reform Network (TURN), a consumer group based in San Francisco, is concerned that last-minute revisions approved by the CPUC on Thursday could leave ratepayers on the hook. “We’re very disturbed that the proposed decision may allow PG&E to collect a $1.4 billion slush fund from ratepayers that it would use specifically to protect its shareholders from any liability for core performance,” TURN staff attorney Matthew Freedman said.

The California Public Utilities Commission approved a plan Thursday to keep the Diablo Canyon Power Plant near San Luis Obispo open for at least six more years. The decision “is an important measure towards supporting the reliability of the California electricity grid as we move forward in our energy transition,” said Karen Douglas, the commissioner assigned to the case. “California’s path forward in the energy transition hasn’t always been easy and won’t always be easy.”

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Utility Company Cites Climate Change in Push for Additional Rate Hikes

Source: Blaze Media | By Candace Hathaway

The Utility Reform Network, a nonprofit group opposed to the "outrageous" rate hikes, accused PG&E of gouging its customers. "It's gonna be between $12 and $20 additional each month. That's on top of the $33 that's coming January 1," said Mark Toney, the network's executive director. "They want them to start collecting in March, even before the CPUC has held a proceeding and decided whether PG&E should get paid back by rate payers; $2 billion for overspending," Toney continued. "Oh, PG&E has several requests for at least another $3 billion." Toney explained that the electric company is attempting to get customers to cover costs "for something that has not even happened." He noted that the Utility Reform Network is partnering with legislators to set price increase limits to protect customers.

Pacific Gas and Electric Company customers will see their bills increase by $33 per month starting at the beginning of the year. However, PG&E claims it is not enough to protect against climate concerns. The utility company is now seeking approval for another rate hike that will increase monthly bills by $12-$20 per month on top of the already-approved New Year's Day increases that have yet to appear on customers' bills.

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