PG&E Seeks Rate Hike to Boost Returns for Investors
Source: CBS 13 Sacramento | By Brady Halblieb
AUBURN – The utility company has announced it is requesting an increase, not for infrastructure or safety improvements, but to boost returns for its investors. Currently, PG&E investors earn a 10.2% return on investment. If approved, the new rate would rise to 11.3%, a 1.1% increase.
"They will tell investors, 'Hey if you give us the money for essential energy projects, we will guarantee you a return on equity,'" said Lee Trotman, a spokesperson for The Utility Reform Network, a consumer advocacy group. If approved, the rate hike would add approximately $5.50 more per month to the average PG&E customer's bill. That may not seem like much, but customers are already paying $60 more per month than last year, and PG&E bills have increased 56% over the past three years. “Every rate increase, especially from PG&E, is devastating to customers. You have literally millions of customers, who can’t afford to pay their bills,” said Trotman.
