PG&E shattered profit records for the second year in a row. The utility announced Thursday it made $2.47 billion in profits in 2024.
Over the same time, California state regulators agreed to six separate rate increases.
The recent approval of two additional rate hikes for Pacific Gas and Electric Company (PG&E) by the California Public Utilities Commission has sparked significant concern among customers. These increases, which mark the fifth and sixth hikes for the utility in 2024, are intended to support vegetation management and extend the operation of the Diablo Canyon Power Plant. The increases will be gradually implemented on customer bills starting in 2026.
Many PG&E customers are already feeling the financial strain, with some reporting an average increase of $50 more than at the start of the year. This has led to frustrations from customers like Don King, who expressed difficulties in affording basic expenses due to the rising rates. Others, like Krishna De La Cruz, have criticized the hikes, calling them a “monopoly scheme.”
Despite widespread public opposition and calls for the commission to reject the increases, the board defended their decision. Board Member John Reynolds explained that the increases are necessary for emergency actions in risky service areas. However, critics like Mark Toney from The Utility Reform Network argue that mismanagement has led to these financial burdens, citing overspending in past budgets.
PG&E, for its part, maintains that it is working to manage costs and has implemented company-wide savings initiatives to mitigate unnecessary expenses. The utility spokesperson Jeff Smith noted that while there were increases in 2024, they were partly offset by a 9% electric rate decrease in July of the same year. Nonetheless, customers are advised to anticipate further increases through 2026.
