Why 16 Million Households in Northern and Central California are About to Pay More for Electricity

Source: Capital and Main  |  By Mark Kreidler

Beginning Jan. 1, power giant Pacific Gas & Electric, which serves 16 million Californians, will impose a 13% increase on the average household bill. That comes to $32.50 a month, or nearly $400 extra per year. Low-income households that qualify for PG&E discounts will still be on the hook for an average of $21 more per month, or an extra $250 per year.

“It’s the tip of the iceberg,” said Mark Toney, executive director of TURN, the utility reform network that lobbies for affordable and accessible power for Californians. “I think that people will see a $50 per month increase in one year,” or an extra $600 during that time. Households will struggle more. Over the past four years, PG&E’s bill increases have dramatically outstripped inflation, according to data compiled by TURN. While the Consumer Price Index showed an 18% jump from January 2020 to September 2023, PG&E’s electric rates went up 51% for most households — and, remarkably, 67% for those enrolled in the company’s CARE program for rate relief, according to the advocacy group’s analysis. There’s a far less expensive option, TURN’s Toney said. Called “hardening,” it involves insulating existing power lines with fire-protective coating. It can be completed more quickly, and for about $800,000 per mile — and Southern California Edison has already done it successfully. As always, the burden of bearing this cost will fall hardest on lower-income households, even if they qualify for PG&E discounts. Using data collected from the company’s own disconnection reports, TURN found that the percentage of PG&E customers who were four months behind on their bills rose from 3.8% in 2019 to 7.0% last July. “That’s a stunning increase,” Toney said.