Here's how cold temperatures will impact PG&E rates with rate hike in effect

PG&E says its gas rates have gone down. But economists say it's not enough to counteract a rate increase that started in 2024

ByDustin Dorsey KGO logo

Tuesday, January 9, 2024

Here's how cold temperatures will impact PG&E rates

PG&E says its gas rates have gone down. But economists point out that it's not enough to counteract a rate increase that began Jan. 1, 2024.

SAN JOSE, Calif. (KGO) -- Lower temperatures often mean higher utility bills, but it may not be as painful to your wallet as last January, according to PG&E.

The utility says regulator-approved rate changes will account for lower natural gas prices than last winter - around a 9% decrease, saving customers about $17 on their gas bills.

That's good news, but economist Ahmad Faruqui says the bad news is, other CPUC approved rate changes will still cost customers more than before.

"I mean, this was one of those New Year's celebrations that was dampened by the news of the bill going up by $35," Faruqui said. "It's a gift that keeps on giving in a negative sense."

Faruqui says the 13% rate hike to pay for the undergrounding of lines for wildfire prevention may not be the last of the increases in 2024.

"According to one study that I've seen for the year as a whole, it could be a rate hike that amounts to $100 a month for the typical customer," Faruqui said. "And that is honestly shocking beyond words."

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"PG&E is holding its customers over a barrel and its laughing all the way to the bank," Former California Public Utilities Commission President Loretta Lynch said, adding the constant CPUC-approved PG&E hikes have to stop.

She says the CPUC creates rules that benefits the utilities like no other state does, leaving California with the second highest electric rates in the country with no cap to the increases or change in sight.

"The question is, does California have the political will to rein in its rogue, out of control utility or are they going to allow PG&E to continue to profiteer off of the backs of California's working families? It's a simple question and it's going to take the legislature and the Governor to answer that question," Lynch said.

Until that time comes, Faruqui says people have to combat prices on their own.

He suggests switching to a smart thermostat to keep the house at cost-effective temperatures, check the ages of your furnace and air conditioner and make sure your home is insulated.

Faruqui says may cost money now, but it will save money later.

After the original reporting, PG&E reached out to ABC7 News saying Faruqui's reference of the study that claims a $100 rate increase per month is false and unsupported.