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Soaring PG&E Power Rates in 2024 Approach Hawaii

Source: NBC Bay Area | By Jaxon Van Derbeken

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.”

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.

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PG&E’s CEO gets Paid $17 Million. Here’s how that Compares to Other Utility Leaders

Source: SF Chronicle | By Emma Stiefel

Mark Toney, Executive Director of The Utility Reform Network, believes it’s unfair that Poppe made $17 million while PG&E customers suffer from historic rate increases. Poppe received about $3 for each of the 5.5 million PG&E electricity customer accounts, though her pay does not come directly from customer rates. Her total compensation was over three times the $5.4 million PG&E's highest-paid executive vice president received in 2023. “Customers have a right to be upset that the PG&E board and investors are willing to pay so much to the CEO and other executives in the face of record-breaking bills,” Toney told the Chronicle. “​​Anyone who’s paying a PG&E bill is unhappy about this.”

PG&E CEO Patricia Poppe took home $17 million in the 2023 fiscal year, including her $1.4 million salary and $11.8 million in stock awards. That was up by nearly $3 million from 2022, when she made $14.1 million in compensation. While critics believe this hearty pay package is uncalled for amid soaring energy bills, PG&E has argued that they are paying market rate for top talent.

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We Need a True Debate Over Income-Graduated Fixed Charges

Source: Legal Planet | By Ruthie Lazenby

Sylvie Ashford of the Utility Reform Network, in response to a question about whether the fixed charge increases utility profits: “This fixed charge does not increase utility revenue or profit in any way. If it did, we would oppose it—we’d be the first ones to oppose it. The costs are determined in other proceedings and that’s where the major effort needs to be. We want other parties to please join us in the general rate cases and pay attention when the utilities are asking for billions and billions of dollars because that’s where the rate increases are coming from; that’s where the record profits are coming from; and that’s what has to be kept in control to stop these absurd rate increases that are far outpacing inflation and have one in five California households in utility debt.”

Electricity rate design is unavoidably technical. It also has huge implications for equity, climate change, and ensuring a grid that works. Rate design can be used to promote many different goals, from efficiency to bill stability, but it always entails distributive decisions. Rate design determines how we distribute the costs not just of electricity, but of the shared system that provides that electricity. 

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California Reject Bill to Crackdown on How Utilities Spend Customers’ Money

Source: Associated Press | By Adam Beam

“Only at PG&E would (Poppe’s) attempts at brand rehabilitation be considered a ‘safety message,’” said Mark Toney, executive director of the Utility Reform Network. “This blatant misuse of ratepayer funds is exactly why we need SB 938 and its clear rules and required disclosures for advertising costs.”

California lawmakers on Monday rejected a proposal aimed at cracking down on how some of the nation’s largest utilities spend customers’ money. California’s investor-owned utilities can’t use money from customers to pay for things like advertising their brand or lobbying for legislation. Instead, they’re supposed to use money from private investors to pay for those things.

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PG&E Strives to Slow Pace of Increases in Electric and Gas Bills: Company CEO

Source: The Mercury News | By George Avalos

Mark Toney, executive director of The Utility Reform Network, a consumer group, was skeptical that PG&E will rein in the pace of monthly bill increases. “I’ll believe it when I see it,” Toney said in an interview about Poppe’s comments. “The prices are so doggone high now they would need to come down significantly to make a difference and make them affordable.” “I find it very hard to believe PG&E, given that the company has a dozen rate increases currently in front of the PUC,” Toney said. “There are a host of proposals that will all impact customers.”

“We see a future where customers’ bills can start to come down,” Poppe said in response to questions from this news organization about fast-rising ratepayer costs, after an event PG&E hosted in Richmond. The surprising comment struck some reform advocates as too good to be true.

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Ratepayers Spend Millions to Save Billions on Utilities, but Why Do We Have to?

Source: The OC Register | By Teri Sforza

The largest group getting intervenor comp, by far, is TURN. It requested $26.4 million between 2020 and early 2024, and was awarded $24.8 million. Over that time, it has saved Californians hundreds of millions of dollars, its accounting shows. In a typical year, its legal staff of 12 attorneys and five policy analysts work on about 100 proceedings at the PUC. For example, TURN recently: Helped win a ruling preventing SDG&E from recovering $514 million from customers that it spent on wildfire mitigation before a reasonableness review by the PUC. Helped win a ruling preventing Edison from recovering $85 million from customers that it spent on tree trimming in non–high fire risk areas. Helped win $400 million in savings for PG&E, SCE, SoCal Gas and SDG&E ratepayers by getting PUC to reduce “Cost of Capital” profit rates (more on that in a minute)…

Electric rates, gas rates, water rates — they go up. And up. And up. Policing these regularly scheduled consumer agonies — or rubber-stamping them, as critics often charge — is the job of the California Public Utilities Commission. This powerful regulator is charged with ensuring that rate hikes and policy decisions are fair and justified

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Will ratepayers will be on the hook for HECO's wildfire costs?

Source: Hawai’i Public Radio | By Savannah Harriman-Pote

Still, securitization may not be a bad deal for ratepayers, said Mark Toney, the executive director of The Utility Reform Network, a California-based consumer advocacy group. "Just think about the difference between the people who got their home loans at 3% or less and people today who are having to pay 7% or more. The same house, your payments are double what they are. So it's kinda like that, it's the same principle," Toney told HPR. But Toney added that ratepayers should never be on the hook for utility negligence. If that’s the case, he said “there has to be a guarantee that shareholders reimburse the ratepayers in real time.” The Utility Reform Network has been involved in one of the largest securitization cases in the country with Northern California electric utility PG&E, which took out $7.5 billion in ratepayer bonds to pay costs related to the 2017 California wildfires. However, he said, California law does not allow a utility to make ratepayers pay for wildfires started due to the company's negligence. "If you look on a PG&E bill and you open it up when it comes in the mail, you will see a line item that talks about repaying the bond as a bill, but there will be a bill credit for the exact same amount, which represents the shareholders reimbursing the ratepayers in real time."

The brushfire that destroyed Lahaina last year was one of 28 weather and climate disasters in 2023 that cost a billion dollars or more in damages. Electric utilities face increasing expenses related to extreme weather events like hurricanes, ice storms and wildfires. Several utilities, including Hawaiian Electric, have eyed ratepayer-backed bonds as a possible avenue to recoup some of those costs.

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TURN Says It’s Time for Calif. Commission to Find ACP Successor

Source: Communications Daily | By Adam Bender and Jimm Phillips

Possibly facing the end of the federal affordable connectivity program (ACP), theCalifornia Public Utilities Commission should quickly modify grant rules to ensureservice stays affordable, said The Utility Reform Network in petitions Friday andMonday. “We don’t have the luxury of time here,” said TURN Telecom Policy Analyst LeoFitzpatrick in an interview Monday. TURN sought changes to grant rules for the California Advanced Services Fund (CASF) broadband infrastructure account in a Friday petition in docket R.20-08-021. In a Monday petition (docket R.20-09-001) along similar lines, TURN and the CPUC’s independent Public Advocates Office suggested changes to the CPUC’s federal funding account (FFA), which uses broadband funding from the U.S. government. In both cases, TURN asked the CPUC to pause making awards until it updates rules to account for ACP’s end and to direct applicants to amend already filed applications.

Reprinted with permission of Warren Communications News, Inc. and Communications Daily, 800-771-9202, https://warren-news.com/ and https://communicationsdaily.com/

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As PG&E Bills Skyrocket, will California Lawmakers Hold Anyone Accountable?

Source: CalMatters | By Julie Lynem

Legislative maneuvering aside, affordable energy and climate advocates like Mark Toney, executive director of The Utility Reform Network, believe that placing a cap on utility rate hikes is just one part of the solution. Regulators should also require utilities to exercise fiscal discipline on spending, he said. Utilities, Toney explained, should not be given a “credit card with no limit and a guarantee that someone else is going to pay.” TURN is backing the Utility Accountability Act, a sensible bill that would prohibit utilities from using funds collected from ratepayers to pay for advertisements, political activities or membership dues of trade associations engaged in lobbying. It would also require utilities to document and disclose their spending. By increasing the cost for using electricity, “that’s not rewarding people for good behavior,” Toney said.

Unaffordable housing, high transportation and health care costs – it’s hard enough to get by in California without also worrying about cranking up the air, turning on the stove or simply keeping the lights on. But that’s what concerns many Pacific Gas & Electric Co. customers who cannot afford to pay their soaring utility bills. As of February, more than 1 million of them were behind on payments.

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PG&E CEO, Other Utility Execs Land Higher Compensation

Source: The Mercury News | By George Avalos

“Customers, shocked by record-breaking bills, have a right to be upset that PG&E shareholders are showering their CEO with $17 million a year,” said Mark Toney, executive director with The Utility Reform Network, or TURN. “If they have enough to provide their executives with millions of dollars in raises because of record-breaking profits,” Toney said, “then they can provide rate relief to millions of captive customers who can no longer afford to pay their monthly utility bills.”

PG&E handed out higher executive compensation to the utility giant’s top boss and other key executives in 2023 — pay increases that came at a time of soaring monthly customer bills and rising profits.

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Watch for $245 in Rebates from Edison and SoCalGas Thanks to Climate Credit

Source: Los Angeles Daily News | By Brooke Staggs

Ever-increasing rates are why Mark Toney, executive director of The Utility Reform Network, or TURN, said most people likely haven’t even noticed the climate credits they’ve received on their gas and electric bills over the past decade. The utility reform group TURN is backing a bill from Assemblymember Al Muratsuchi, D-Torrance, that would use revenue from cap-and-trade to create a Climate Equity Trust Fund. The idea, Toney said, is to have utilities use money from that fund to help, say, build out electric charging stations for trucks in Ontario rather than having Edison pass those costs along to all ratepayers on their monthly bills. Something’s gotta give when it comes to utility prices. So Toney said building on the successes of the cap-and-trade program just makes sense.

In April, Southern California Edison customers will see an $86 credit automatically appear on their monthly bill, while Southern California Gas customers will get a credit of $73. Then, in October, Edison customers will see their bills drop by another $86. Similar rebates are being doled out this year to customers of investor-owned utilities throughout California, with more than $1.6 billion due back to electric customers, $1 billion to natural gas customers and $160 million to small businesses.

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PG&E Customers Could see Lowered, Fixed Power Bills with CPUC's Proposal

Source: ABC 7 News | By Tim Johns

The Utility Reform Network, or TURN, says it's a move that would likely reduce the rates customers pay for power by anywhere from 5 to 7 cents per kilowatt hour. "It's going to make utility bills more affordable for low-income households and reduce the volatility of month-to-month bills. And it will promote electrification," said TURN's Matthew Freedman. A welcome response for people like Freedman, who says regulators have a lot more work to do to make bills more affordable. "PG&E is spending too much money. Collecting too much in profits and not being held accountable for its mismanagement of the system," he said.

At the historic Orinda Theatre, the past few weeks have been anything but business as usual. Owner Derek Zemrak says he made the decision to close the theater on Mondays and Tuesday after receiving a PG&E bill for nearly $6,300, almost double what he normally pays. "I was shocked. I knew PG&E had raised rates for commercial properties. I just didn't realize it was going to be that high," Zemrak said. The skyrocketing bills aren't just hitting Zemrak. To tackle the issue, the California Public Utilities Commission is proposing a new $24 fixed charge on monthly electric bills.

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California Utilities Commission Proposes Restructured Utility Bills. Here’s How it Could Impact You.

Source: CBS News | By Kayla Moeller

The Utility Reform Network, a consumer advocacy group, says the proposal is a step in the right direction. "First of all, the rate people pay for usage would be reduced," said Matthew Freedman of the Utility Reform Network. If passed, customers would see a separate line on their bill for $24.15. However, that doesn't mean your bill would go up. That's because the flat rate would restructure your bill. The CPUC says customers' usage rates would be reduced by 5 cents per kilowatt hour. "For example, a PG&E customer that lives in the Sacramento area, the average customer would see about $1.50 a month net savings on their bills," Freedman said.

The California Public Utilities Commission (CPUC) has a new proposal to lower the cost of your utility bill, but it's causing controversy as opponents are worried it could do the opposite. What's being proposed is a restructuring of how customers pay utility bills.

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California Proposes a $24 Flat Fee on Utility Bills in Exchange for Lower Electricity Prices

Source: San Francisco Chronicle | By Julie Johnson

Matthew Freedman, a staff attorney with ratepayer advocate nonprofit The Utility Reform Network, said his organization supports the commission’s plan but said the state needs to do more to make energy more affordable. “Much more needs to be done to address California’s skyrocketing electricity rates,” Freedman said.

Millions of Californians could see a new $24 fixed charge on their monthly utility bills in coming years if state regulators approve a plan that would reduce how much customers pay per kilowatt hour of electricity. The California Public Utilities Commission estimates the new flat fee would allow companies like Pacific Gas and Electric to reduce electricity prices by about 5 to 7 cents per kilowatt hour, easing the expense for customers already paying some of the highest electricity prices in the country.

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The Utility Reform Network Calls for Relief for California Ratepayers

Source: The Northern California Record | By Northern California Record

The Utility Reform Network (TURN) has raised concerns about the financial burden on California's ratepayers, who are grappling with "record-breaking bills" that are allegedly pushing families into poverty and homelessness. The organization points out that Californians are dealing with escalating costs for basic necessities such as housing, food, utilities, and insurance. In a press release, TURN revealed that the California Public Utilities Commission is planning to collect $516 million prematurely from PG&E ratepayers to safeguard PG&E’s credit rating. The consumer advocacy group highlighted that PG&E has several pending requests for rate hikes in addition to the average monthly increase of $35 that came into effect on January 1. TURN emphasized the urgency of the situation by stating that Californians are confronted with "skyrocketing bills" and require immediate relief. TURN is an independent consumer advocacy organization operating statewide, as per its website. For half a century, TURN has been committed to helping California residents and small businesses save money. The organization offers information on energy and telephone issues to consumers.

Over the past year, residents of California have been hit by significant price hikes for various necessities. Data from the Bureau of Labor Statistics’ (BLS) Consumer Price Index indicates that residents in the Western Region - which encompasses all of California - are paying 2.3% more for food, 4.8% more for rent, and 11.5% more for electricity since February 2023.

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San Diego's Cost of Living Crisis

Source: KPBS | By Andrew Bracken & Lara McCaffrey

Here's consumer advocate Mark Toney of the Utility Reform Network. A lot of people are questioning why is it that SDG&E needs more money , that shareholders seem to be doing just fine. It's the customers that are hurting. It's the customers that are feeling the pain , but it's the shareholders who are reaping the gain.

And not surprisingly , over the past few years , we've seen an increase in the number of people falling behind on their bills. At the same time , SDG&E reported record profits in 2023 , leading many to wonder why prices are so high.

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Backlash over AT&T bid continues

Source: The Press Democrat | By Marisa Endicott

“A woman described how essential her internet service has been in facilitating medical appointments for her mother in hospice care. ‘I strongly encourage policies that support a modern and robust network for everything in California,’ she said. ‘I don’t want the CPUC to stand in the way of progress.”

The backlash from California communities and officials has been swift and steady as state regulators consider whether to release AT&T from…

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Hundreds Speak Out at CPUC Hearing on AT&T Plan to Ditch Landlines

Source: CBS News | By Ruth Dusseault

According to Regina Costa with The Utility Reform Network, a nonprofit watchdog group that advocates for affordable power and phone service, the two designation requests are linked in a slight-of-hand to get out from regulations. If AT&T is released as the COLR, then it is no longer obligated to provide basic service. "There's the catch," said Costa, "They are saying they will provide California LifeLine, but only where it has an obligation. At the same time, they are asking for a release of the obligation as carrier of last resort. So, it's really a lot of smoke and mirrors." Costa says that AT&T is allowed to offer LifeLine using Voice over Internet Protocol (VoIP), which is a digital service that can be transmitted on either copper or fiber optic wires, but she says the company chooses not to do that. "So, it is being pitched as if they are getting rid of these old, antiquated lines," Costa said. AT&T also co-owns most of the utility poles with PG&E, said Costa. "So, if you want to use the pole, you have to negotiate with AT&T."

On Tuesday, over 200 phone comments were heard by the California Public Utilities Commission over their consideration to release AT&T from its obligation to serve as the state's carrier of last resort. The carrier of last resort designation, or COLR, is a cornerstone of utility regulation. It obligates a carrier to serve all customers within their territory no matter where they live, even in places with spotty cellphone service.

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California Lawmakers Backpedal on Income-Based Utility Charges as IOUs, Others Propose Alternatives

Source: Utility Dive | By Herman K. Trabish

But without “some kind of rate restructuring,” the growing non-electricity costs imposed on the volumetric rate could lead to “profound unfairness between the haves and the have-nots,” said Matthew Freedman, staff attorney with The Utility Reform Network, or TURN. Many stakeholders, including UC Berkeley’s Borenstein and TURN’s Freedman, expect regulators to propose a simplified IGFC. With a very high fixed charge, upper income customers “may buy solar and batteries and other technologies and defect” from utility service, TURN’s Freedman agreed. Reducing utilities’ return on equity and using new sources of and approaches to financing to reduce the capital needed for infrastructure projects will also reduce costs, TURN’s Freedman added.

Some California lawmakers have proposed repealing a measure the legislature approved in 2022 that would protect low-income customers and beneficial electrification from electricity rates that are now the nation’s third highest. The income graduated fixed charge, or IGFC, was proposed in a 2021 University of California white paper as a way to partially shift the funding source for some of the state’s public policies from its fast rising per kWh, or volumetric, power prices to income-based fixed charges.

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PG&E Ranks in Bottom Third in U.S. Customer Satisfaction Survey: New Report

Source: The Mercury News | By George Avalos

“If PG&E cared about customer rankings, it would spend less money on public relations and slick television commercials, and more on live persons to answer the phone when customers call,” Mark Toney, executive director with The Utility Reform Network, or TURN, said in comments emailed to this news organization. “If PG&E wanted a better reputation, it would stop overspending on excessive tree removal, and more on connecting new electrical service to affordable housing developments, schools and hospitals that have been on a waiting list for months.” “If PG&E wanted to boost customer confidence, it would prioritize delivering the cleanest, safest and most reliable service at the most cost-efficient manner, instead of prioritizing shareholder profits,” Toney said.

PG&E languishes in the bottom third of a list of dozens of big utilities nationwide in terms of customer satisfaction, although the embattled power company’s rank is improving, a new survey shows.

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