Lawmakers Could Decide PG&E Rate Increases, Not Public Utilities Commission

SACRAMENTO (CBS13) - PG&E will not be allowed to raise customer rates before getting permission from the Legislature if a new bill gets signed into law.

Senate Bill 549 would take the approval away from the Public Utilities Commission and give it to lawmakers.

The move comes after PG&E filed for bankruptcy and said it couldn't afford to pay for the state's deadly wildfires without raising customer rates.

"It is essential that ratepayers are protected financially and are provided safe service even during the utility's bankruptcy," said the bill's author Senator Jerry Hill (D-San Mateo and Santa Clara Counties). "My legislation addresses that need by prohibiting state regulators from changing PG&E rates without authorization from the Legislature. In effect, this requirement gives the Legislature a say in how the reorganization impacts PG&E customers -- who otherwise would have no representation in any consideration of rate changes."

According to Senator Hill, after PG&E filed for bankruptcy in 2001, "Enormous costs were passed along to customers, but no commensurate increase in safety resulted. Instead, a string of disasters occurred."

Sen. Hill also introduced SB 548 requiring electric utilities to inspect their transmission lines within a time set by the state, not by the utility themselves. Court documents show PG&E inspected the line thought to be responsible for the Camp Fire every 5 years.

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