PG&E electric bills soar faster than high inflation: state report

Upcoming PUC decisions could jolt customers with multiple rounds of higher bills

OAKLAND — PG&E electric bills have risen far faster than the Bay Area’s already high inflation rate, shocking the company’s customers with rising utility costs.

Worse, a slew of proceedings before the state Public Utilities Commission could result in decisions that raise PG&E’s monthly electricity and gas bills even further.

The foreboding prospect of higher utility bills comes as the PUC’s Public Advocates Office releases a report detailing the rise in electricity bills for California’s three major investor-owned utilities, including PG&E.

PG&E bills for the average residential customer have risen 38% in the last three years, or 12.7% on average, according to PUC public advocates.

During the same roughly three-year period, the Bay Area inflation rate, as measured by the consumer price index, rose 11.7%, according to a review of data from the U.S. Bureau of Labor Statistics by this news organization. This equates to a 3.9% annual increase in the Bay Area inflation rate.

In other words, PG&E electricity bills are rising three times faster than the Bay Area’s overall inflation rate.

“Electric bills are generally rising due to increased electricity use (air conditioning, for example) and higher overall electricity prices,” according to the Public Advocates Office’s report.

Oakland-based PG&E stated that it was reviewing the advocates’ report.

“We are working to keep overall customer costs at or below assumed inflation, between 2% and 4%,” PG&E spokesperson Mike Gazda said.

When compared to inflation, PG&E electricity bills have also skyrocketed in the last year.

The cost of electricity provided by utility companies in the Bay Area — essentially a proxy for PG&E monthly electric bills — increased by 12.3% in the region over a year ending in August, according to the Bureau of Labor Statistics.

The Bay Area inflation rate increased by 3.4% over the same 12-month period, according to the federal agency.

“We reduced our operating costs by 3% in 2022, and are currently managing 125 projects companywide to further reduce costs,” Gazda said in a statement.

The other two major California utilities have also seen outsized increases in electricity bills over the last three years. One of the major utilities outpaced PG&E’s bill increase of 38%, while the others imposed bills that rose at a slower rate.

Southern California Edison, which serves the Los Angeles County region, increased its rates by 44%. San Diego Gas & Electric, which serves San Diego County, reported an increase in electric bills of 35%.

So far in 2023, PG&E electricity bills have risen at a much faster rate than bills imposed on customers by San Diego Gas & Electric and Southern California Edison.

Monthly electricity bills increased 10% for PG&E customers, 5% for Southern California Edison ratepayers, and remained unchanged for San Diego Gas & Electric customers, according to an email sent to this news organization by the Public Advocates Office.

Those who may have the most difficulty paying higher electricity bills are being severely jolted by the rising costs.

“Higher rates and bills disproportionately affect low-income households,” according to the Public Advocates Office.