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

Source: NBC Bay Area  |  By Jaxon Van Derbeken

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.

“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.”