Soaring PG&E Power Rates in 2024 Approach Hawaii

Source: NBC Bay Area  |  By Jaxon Van Derbeken

With the hefty increase so far this year, PG&E’s rates are now approaching those of Hawaii, a state with the unfortunate distinction of having the most expensive power in the nation. Hawaii has long paid the highest of any state for power – in part because as an island nation, oil must be shipped in from as far as Libya and Argentina. The cost to generate power accounts for about half the average 41 cents per kilowatt hour price Hawaiian customers pay, according to the U.S. Energy Information Administration.

“PG&E rates are clearly insane right now,” says Matt Freedman, an attorney with the ratepayer advocacy group TURN. He says one reason is our rates pay for things other than the cost of producing power. His breakdown indicates ratepayers pay six cents per kilowatt hour for wildfire efforts – including undergrounding power lines -- six cents more to subsidize solar and two cents on top of that for low-income subsidies. “Low-income customers in PG&E service territory are really facing a crisis of affordability,” Freedman says. “We saw 180,000 customers disconnected for nonpayment last year, and about a third of PG&E low-income customers are late in paying their bills right now.”