5 months ago
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SAN FRANCISCO (KGO) -- On Thursday, Pacific Gas and Electric asked authorities regulators to complaint customers much truthful shareholders tin nett more. It's a process that happens each 3 years.
Even though PG&E customers wage immoderate of the highest vigor bills successful the country, adjacent though PG&E has shattered nett records, the inferior is present asking the California Public Utilities Commission to rise rates truthful it could wage investors more.
PG&E is asking for an 11.3% instrumentality for investors, up a percent constituent from the existent limit.
MORE: PG&E reports nett of $2.47B for 2024, shattering records for 2nd twelvemonth successful a row
That would summation lawsuit bills by $5.50 per month.
"First and foremost, PGE is expanding their rates to payment their shareholders--pure profits," Silicon Valley State Senator Dr. Aisha Wahab said. "This past twelvemonth alone, they made $2.47 cardinal successful axenic profits fto unsocial the $86 cardinal that goes to shareholders dividends."
The Utility Reform Network, oregon TURN, advocates connected behalf of ratepayers.
"It's unbelievable. I'm floored that PG&E is asking for specified a ample summation successful their complaint of profit, their Cost of Capital application," TURN Executive Director Mark Toney said. "They use each 3 years to the California Public Utilities Commission. It has to o.k. however overmuch nett they tin marque connected investments."
PG&E says they're asking for the summation due to the fact that they privation to pull and support investors.
"PG&E volition support saying they person to pull investors and marque definite that they are profitable capable to beryllium invested in," Wahab said.
MORE: California regulators o.k. PG&E's 6th complaint hike of 2024
The inferior says investors successful California's vigor look a batch of risks, similar ostentation and disruptions to the proviso concatenation which tin summation prices and involvement rates.
On it's website, the inferior stated, "PG&E seeks to adequately compensate investors for these risks, accordant with different companies with akin hazard levels crossed the country."
PG&E noted that clime alteration has besides accrued the interaction of storms and wildfires. PG&E is besides facing large unit to forestall its instrumentality from sparking devastating fires.
Last year, PG&E accrued its rates six times.
"There were 5 energy increases and 1 earthy state increase," Toney said.
MORE: PG&E could person $15 cardinal successful national loans for powerfulness lines, hydroelectric power
The mean residential customers paid astir $440 much a year, compared to 2023.
Earlier this month, PG&E lawsuit bills roseate by astir $3 for mean households. That summation covers rising transmission work costs and repay the inferior institution for state-mandated vegetation absorption enactment the institution completed successful 2021.
Wahab is proposing a caller program to bounds inferior companies to lone 1 complaint summation a year.
"We wage much and much each period to support the lights on," Wahab said.
According to the PG&E website, "PG&E pays the lowest dividend successful the inferior industry, and arsenic a effect PG&E reinvests 97% of what it earns backmost into the company. This includes programs that marque the strategy safer for customers."
If the CPUC approves PG&E's proposal, the complaint hike would instrumentality effect starting successful January 2026.
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