- Pacific Gas and Electric, California’s largest utility provider, has requested its seventh rate hike since early 2024. It seeks an additional $5.50 per month for average residential customers. If approved, the increase would take effect in January 2026.
- The company argues that an increase is necessary to protect investors from risks while funding infrastructure maintenance and improvements.
- Since 2024, the average annual residential energy cost for Pacific Gas and Electric customers has risen by about $440 to more than $3,500 per year, double what it was in 2022.
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California’s largest utility provider, Pacific Gas and Electric (PG&E), has submitted a proposal to state regulators seeking approval for another rate increase. This could be the company’s seventh rate hike since the beginning of 2024.
The latest request, filed with the California Public Utilities Commission (CPUC), asks for an increase of $5.50 per month for the average residential customer.
Why is PG&E raising customer rates?
According to PG&E, the rate hike is necessary to shield investors from growing financial risks associated with operating in California. The company cited ongoing challenges such as inflation, supply chain disruptions, and climate change, which it says are increasing the costs of maintaining and improving the state’s energy infrastructure.
PG&E emphasized that higher investor returns are critical for continuing to attract the capital needed to fund infrastructure projects and safety programs. The utility also stated that 97% of its earnings are reinvested into the system to support improvements in safety and reliability.
How are consumers responding?
The proposal has drawn criticism from consumer advocacy groups. The Utility Reform Network (TURN) called the request “unbelievable,” noting that PG&E customers already face some of the highest energy bills in the country. Since 2024, the average annual residential energy cost for PG&E customers has risen by about $440 to more than $3,500 per year, double what it was in 2022.
TURN also noted PG&E’s strong financial performance, with record profits for two consecutive years. In 2024 alone, the company reported nearly $2.5 billion in profits.
What happens next?
In response, PG&E argued that despite its record earnings, it pays the lowest dividend in the utility industry, signaling a focus on reinvestment rather than shareholder payouts.
The CPUC is reviewing the company’s proposal. If approved, the rate hike would take effect in January 2026.
