After increasing rates earlier this year, PG&E, Northern California’s gas and electric utility company, has reported that its profits increased by 28% during the April-June quarter, compared to same period the previous year.
The rate increases have been far faster than inflation. Average monthly utility bills have risen by 22% compared to 2023, compared to the 2.6% inflation rate over 2023. The most recent rate hike in April was said to compensate for PG&E’s expenses managing vegetation to reduce wildfire risk. PG&E has even more rate increase proposals pending approval by the California Public Utilities Commission (CPUC).
PG&E’s infrastructure was responsible for many large and destructive wildfires in recent years, and now that they face financial liability for fires, they are finally doing more to reduce fire risk… except they are making Californians pay for it! PG&E is using its own past failures as an excuse to profit at our expense. We should not have to pay for their failures. Yet CPUC – whose commissioners are appointed by Governor Newsom – keeps approving rate increases.
This is an entirely expected in a capitalist system. Corporations always seek to increase their profits, and the state aids them in this pursuit. The utility company is run in the interest of profit for the shareholders, and not the interests of the people.
