"They just keep going up": PG&E wants to raise rates enough to boost its revenue to reduce wildfire risk
EL DORADO COUNTY - About 16 million people across Northern California could soon be paying more for power.
PG&E is asking state regulators to raise rates yet again. The utility is looking for rates to be raised enough to boost its revenue by 26%, but the California Public Utilities Commission (CPUC) is proposing half of that, 13%, or even less, 9%.
While neither is confirming numbers, experts said the proposals would have customers paying about $28 more every month, $336 every year.
PG&E said the money is needed to help cover the cost of burying power lines in order to prevent wildfires.
"It's insane," said one PG&E customer in El Dorado County. "They just keep going up and up and up."
People in El Dorado County told CBS13 that paying their PG&E bills has been painful.
"We wish PG&E would do a better job of managing their money," said Undine Krauss, who is tired of paying more nearly every month.
If PG&E wants to raise its revenue, the rates for customers will also climb.
"Enough is enough," said executive director of the Utility Reform Network that advocates for ratepayers Mark Toney. "Don't raise the rates past the rate of inflation."
PG&E plans to use the money for undergrounding 2,000 miles of powerlines, but the CPUC proposed PG&E underground as little as 200 miles and insulate the rest. Experts said this would save ratepayers $3.8 billion dollars compared to PG&E's proposal.
"I think it's great they are trying to upgrade their system," said one woman who lives in El Dorado County.
Toney said insulating power poles costs less and can be done quicker.
"The lines are being disconnected automatically before they hit the ground, they are de-energized," Toney said.
PG&E said undergrounding lines reduces wildfire risk by 98% versus 65% with insulating them.
"Undergrounding is basically permanent risk reduction," said spokesperson for PG&E Lynsey Paulo. "When those lines are underground, they are protected from storm damage and that means you don't have as many power outages."
But do high fire risk areas have 20 years to wait for 10,000 miles to be underground?
"I think they better do the cheapest one we are paying enough already as is," said one El Dorado County resident.
Or will the threat of climate change-caused fires end up costing people more anyway?
"If they have the money to underground they should do it because it is a greater return eventually," said another El Dorado County resident.
The CPUC will be voting on PG&E's revenue increase and proposal for insulating lines on November 2.
PG&E said it is also working on other wildfire mitigation projects such as vegetation management and capacity upgrades that will help the state reach its climate resiliency goals.
More information on CPUC's proposal and PG&E's response.
