Fresno leaders push back on 22% PG&E rate increase. Here’s what they want instead
The Fresno City Council and Mayor Jerry Dyer said Thursday they will send a letter to public utilities officials asking to freeze rates rather than approve a proposed 22% rate hike.
Pacific Gas and Electric has asked the California Public Utilities Commission to approve a 22% residential rate increase from 2023 to 2026.
PG&E’s request would also affect low-income customers enrolled in the California Alternate Rates for Energy program, who would face an 18.3% increase in the first year.
“I am writing to express my extreme concern over PG&E’s proposed rate increase request, as well as the overall inequitable electricity rate structure we currently endure in the city of Fresno,” Dyer wrote in a letter.
The news comes as Fresno and the Valley are on pace to see the hottest year on record, including the most triple digit highs of all time.
“Unfortunately, enormous PG&E bills are a significant threat to most of our disadvantaged communities and struggling families trying to make ends meet,” Dyer wrote.
PG&E customers pay about 80% more per kilowatt-hour than the national average, according to a study by the energy institute at UC Berkeley’s Haas Business School with the nonprofit think tank Next 10, CalMatters reported in March.
PG&E customers pay an average of $215 a month for services compared to the national average of $132, according to Fresno city leaders. The proposal would push the PG&E average to $262.
Councilmember Luis Chavez, who is serving as president, said PG&E’s proposal is unacceptable.
“They are requesting to raise rates as high as 18% in the first year to our residents, which includes families on the discounted CARE rate,” he said in the news release. “The fact this increase includes our most vulnerable families already struggling is horrendous.”
Fresno officials argue that Fresno and the central San Joaquin Valley buoy the utility-users in the rest of the state, because Valley customers buy more electricity during scorching summers.
Dyer’s letter asks for PG&E and the utilities commission to consider freezing rates until an equitable fix is in place. Dyer and the city also want PG&E to audit its internal spending and look into cost-saving measures, along with seeking rate reform and other changes.
Why PG&E wants the increase
PG&E spokesperson Paul Moreno said the increase is necessary, noting the request will be examined in public meetings.
“As always, our commitment is to keep customer costs as low as possible, while meeting our responsibilities to safely serve our customers, even as our changing climate presents new challenges and risks,” he said in a statement.
The increase is important for making additional safety investments to help further reduce wildfire risk, enhance gas and electric safety and reliability, and further support the state’s clean energy goals, according to Moreno.
He said PG&E has a number of programs for helping those who struggle to pay high bills, adding the company has also made efforts to help people during the COVID-19 pandemic.
Assemblymember Jim Patterson weighed into the issue Thursday afternoon.
“As the vice chair of the Utilities and Energy Committee for the last eight years, I have the same concerns Mayor Dyer has. It seems like no one in Sacramento is listening,” he said.
He said he’ll take the concerns to utilities commission President Marybel Batjer.
The utilities commission has scheduled public hearings later this year. Dyer has requested them to hold hearings in Fresno, according to a news release.
The commission takes public comments at 415-703-1584 or by email at PublicAdvocatesOffice@cpuc.ca.gov.
This story has been corrected from an earlier version.
This story was originally published September 2, 2021 at 5:43 PM.
