Fresno, California – The prospect of potentially hefty PG&E bills is likely on the thoughts of many Central Valley residents as the heat waves return.
California Governor Gavin Newsom visited Fresno on Tuesday and promised to work toward lowering bills for everyone to allay such fears, at least for the time being.
Is the problem with rates growing worse by the day? In a word, yes. Without a doubt. Will we take any action regarding it? “Indeed,” he replied.
Although he refused to divulge details on his proposal, Newsom did disclose that state programs, which he claims are immediately reflected in power rates, would be the primary focus of his effort to reduce prices.
“I don’t think a lot of things should be on your bill,” Governor Newsom remarked. Truthfully, several programs in this state are up to par. Then everyone ends up footing the bill for the privileges of the few, he added.
These rules and programs account for about one-third of customers’ bills, according to PG&E.
There is an additional $1.8 billion spent annually on tree trimming to decrease the likelihood of wildfires and power outages, on top of the 6% spent on public purpose programs in California and the 15% spent subsidizing the price of system maintenance for solar customers.
PG&E Bill Increases on the Horizon: Customers to Face Higher Charges Soon
According to PG&E spokesperson Jeff Smith, low-income households might be unfairly hit when these policies and initiatives are funded through utility bills, even though many Californians benefit from them.
But rate hikes still have a significant impact on families, on top of the money going to policies and services. The fourth rate increase for PG&E this year was unanimously approved by the California Public Utilities Commission in September.
“The public utilities can grant as much as they want in an increase,” stated Mark Toney, executive director of The Utility Reform Network. Utility debt has increased fivefold in the last four years. He boasted that it was five times more in the past.
For some company owners, like Soups, Scoops & More owner Cora Shipley, who pays over $2,000 monthly to PG&E for her tiny business, reform is necessary.
While anything would be helpful, Shipley is skeptical that aid is on the coming and worries that her and others’ time may be running out.
It’s more important than whatever else you have, even your rent. The primary motivator is your payroll. The ice cream has forced us to turn on the air conditioning. “So, you’re in a tough spot,” Shipley explained.
According to Newsom, he plans to take more drastic measures in early 2025 after taking preliminary action on utility costs soon.
