PG&E seeks rate hike to boost returns for investors
AUBURN – PG&E customers may soon see another rate hike on their bills. The utility company has announced it is requesting an increase, not for infrastructure or safety improvements, but to boost returns for its investors.
For customers like Rocklin resident Walt Groff, the news is frustrating.
"Every time you turn around, it's going up," Groff said.
Groff installed solar panels on his home to help cut energy costs, but he says it hasn't shielded him from rising rates.
"It's helped some, but PG&E finds a way into your wallet anyway," he added.
This request follows six rate increases approved last year, which were meant to fund a power plant and tree maintenance. However, this new hike is different. It's intended to increase investor returns.
Every three years, PG&E submits an application determining how much return investors receive for funding the company. In its latest filing, the utility argues that investors take on financial risks—such as inflation, supply chain disruptions, federal regulations, climate change, and liability for wildfire damages—and should be compensated accordingly.
"They will tell investors, 'Hey if you give us the money for essential energy projects, we will guarantee you a return on equity,'" said Lee Trotman, a spokesperson for The Utility Reform Network, a consumer advocacy group.
Currently, PG&E investors earn a 10.2% return on investment. If approved, the new rate would rise to 11.3%, a 1.1% increase.
If approved, the rate hike would add approximately $5.50 more per month to the average PG&E customer's bill. That may not seem like much, but customers are already paying $60 more per month than last year, and PG&E bills have increased 56% over the past three years.
"Sometimes I wish I was on Roseville Electric instead of PG&E or any of the others," Groff said.
PG&E reported $2.47 billion in profit last year, breaking its own record from 2023.
The California Public Utilities Commission will decide whether to approve the increase, which, if passed, would take effect on Jan. 1, 2026.
