PG&E Seeks Reliably Higher Rates From California Public Utilities Commissison

By Mark Toney, PhD
Executive Director
TURN- The Utility Reform Network

In an unusually audacious move, PG&E is trying to stick customers with unprecedented rate hikes that will only add to the economic difficulties facing many Californians. PG&E has asked the California Public Utilities Commission to impose up to $374 million in new charges on customers, above and beyond almost $1 billion in rate hikes already approved for the next three years.

TURN and the Division of Ratepayer Advocates (DRA) have formally requested that the CPUC reject the request out of hand by filing a Motion to Dismiss the Application. As is often the case, PG&E claims the rate hike will make electricity more reliable. But PG&E also justified the last round of rate hikes with the claim of improving reliability. But in truth, this latest request is less about reliability and more about overreaching.

Unfortunately, the most reliable thing about PG&E is their greed. Despite all the extra money PG&E has already collected, it claims consumers in northern California must pay even more if they are tired of substandard service.”

PG&E has not even bothered to provide any evidence that the $2.4 billion it now says it needs for improvements will deliver billions in direct benefits to customers. What’s worse is that PG&E’s response to storm-related outages, one of the most onerous problems from a customer perspective, would not be improved under the scheme.

DRA also strongly opposes PG&E's latest attempt to obtain unwarranted funding. "PG&E's application contravenes the recent rate case settlement with DRA, adopted last year by the Commission," stated DRA's director Dana Appling. "The settlement already provides PG&E sufficient funding for its electric distribution network through set rate increases in 2009 and 2010,” said Appling.

There is already a system in place that allows utility companies to raise rates and PG&E has taken full advantage of that process. TURN wants the CPUC to force PG&E to stick to its budget, just like the rest of us have to. This is a blatant attempt to squeeze even more money out of beleaguered customers with no other justification than simply because they can.”

As executive director of The Utility Reform Network (TURN) , Mark Toney sets the organizations’ strategic course and directs its legal and political advocacy on behalf of over 37 million Californians. TURN has stood up for consumer rights, affordable rates and a more livable California. For more than 30 years it has challenged California’s powerful energy and telephone companies, saving consumers and small businesses millions, and demanding reliable service and environmentally sound policies.

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