PG&E Asks to Raise Rates Again and Pay Shareholders Higher Profits

Source: KQED |  By Danielle Venton

Utility giant PG&E asked California regulators this week to allow it to increase compensation for its investors, a move that would add yet another rate hike for customers. California’s largest investor-owned utility said raising the allowable rate of return for shareholders by 1 point, to 11.3%, is appropriate because of the risk involved with investing in energy in the state. That return would bring the utility more in line with other comparable energy companies, according to PG&E.

“Here’s the problem,” said Lee Trotman, a spokesperson for the Utility Reform Network, or TURN, “PG&E also recorded record profits last year. For 2024, they recorded $2.47 billion in profits. That’s a record, and they did it by raising rates six times.” He expects the increase, if approved, will cause further distress for PG&E customers, about 20% of whom are behind on their energy bills, according to the CPUC’s Public Advocates Office . Trotman said TURN will advocate for a lower increase and ask the company about other ways to save money: “We will intervene, and we’ll say, ‘OK, that’s excessive, that’s not sustainable. So, have you tried this? Will you try that?’”