Pacific Gas and Electric Co. (PG&E) has requested the California Public Utilities Commission to approve a rate increase to enhance shareholder profits. The utility company is seeking an 11.3% return for investors, which is a one percentage point increase from the current limit. PG&E cited the high risk of doing business in California, including inflation, supply chain disruptions, and extreme weather events, as reasons for the request.
The proposal comes after a year of significant rate hikes approved by the commission in 2024. PG&E reported a record $2.47 billion in profits last year, yet it claims to pay the lowest dividend in its industry. According to KMPH, the utility reinvests 97% of its earnings back into the company.
If approved, the rate increase would raise residential customer bills by approximately $5.50 per month starting January 1, 2026. PG&E anticipates average annual bill increases of 2% to 4% through 2026. The proposal is expected to face scrutiny, as it follows a year of multiple rate hikes that have already impacted California residents.
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