CPUC set to vote on more PG&E rate hikes as utility receives federal loan

The California Public Utilities Commission is set to vote on yet another rate hike for PG&E customers Thursday.

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If the four rate hikes from earlier this year are any indication of how they will vote, we’ll see more.

Utility reform advocates are encouraging people to continue to speak up against rate hikes.

PG&E is on track to get a $15 billion loan from the US Government.

The utility company says the money could help modernize the power grid and lower costs for customers.

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In a release, PG&E said the funding could help to improve battery storage and electric vehicles and improve power lines, and expand and upgrade substations and transmission networks.

The company submitted its loan application to the U.S. Department of Energy’s Loan Programs Office in June 2023.

The company’s CEO issued a statement on the conditional loan, writing:

“Investments in a clean and resilient grid for northern and central California will have significant returns for our customers in safety, reliability and economic growth. The DOE loan program can help us accelerate the pace and impact of this work, which supports thousands of living wage jobs, at a lower cost to our customers.”

In the long run, TURN (The Utility Reform Network) says the interest rate the utility would receive from the federal government instead of a corporate structure will be lower.

Before energy customers get too excited about the prospect of lower bills, TURN Executive Director Mark Toney warned costs could still hit your wallet.

“It’s a loan and guess who’s going to pay it back. It is not going to be the shareholders. It’s going to be you and me on our monthly bills,” said Toney.

“So, by itself, this is not going to reduce rates. It will reduce rates if the Commission says, you know what PG&E you have to use some of this money for rate relief, that would be an example.”

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The conditional loan still has to be finalized.

Toney said if it is his organization will be pushing for proper oversight on how the money is spent.

Beyond the loan rates could be rising once again for PG&E customers as the CPUC is set to meet again on Thursday.

“There are two more rate increases for PG&E on the agenda,” said Toney.

“Now, if both of them get passed. that will be 6 rate increases in one year. Talk about record breaking. People are already paying $60 more on average each month then at the end of last year.”

Toney said customers need to attend or call into the CPUC meeting at 11 am Thursday, December 19th to advocate against further rate hikes and to continue to reach out to their legislators and the governor’s office.