PG&E to get $15B federal loan as it gears up to ask for CA for another rate hike
PG&E announced Tuesday the Biden administration is committed to providing them a $15 billion guaranteed low-interest loan.
It's the largest-ever loan of its kind from the Department of Energy. It comes as PG&E ratepayers have been seeing their bills increase dramatically this year.
Michael Hayes holds months of big PG&E bills at his small West Sacramento coffee shop, He Brews Coffee and Tea Company.
"We started out at $1,000 a month in utility bills and we've gone up to our highest months being about $4,000 dollars," Hayes said.
He's even upgraded his building to be more energy efficient.
"We've done our whole air conditioning unit, put split units in, all to try to reduce the costs off our monthly bill and it keeps going up," Hayes said.
As his PG&E bills go up, the utility announced the federal government is now committed to awarding them the $15 billion low-interest loan for infrastructure improvements.
PG&E CEO Patty Poppe issued a statement about the loan reading in part:
"Investments in a clean and resilient grid for northern and central California will have significant returns for our customers in safety, reliability and economic growth."
It comes as PG&E has raised its rates 56 percent in the last three years, 110 percent in the past 10 years, both the highest in the states
Mark Toney is executive director of The Utility Reform Network, a utility watchdog. Toney said the $15 billion low-interest federal loan will be good for ratepayers who won't be stuck with paying back higher private financing. He said for bills to go down, PG&E will need to change its ways.
"Ratepayers have been hit with four rate increases in 2024 — four, this year alone," Toney said. "People are paying an average of $60 more a month than last year."
For Michael Hayes, no relief from the $15 billion loan will be a big buzz kill.
"It takes a lot of meditation, mindfulness, and prayer," Hayes said.
On top of the four rate hikes already approved this year, PG&E is asking the California Public Utilities Commission for another one on Thursday.
If approved that will go into effect in 2026.
