The CPUC will vote on further increases to PG&E rates as the utility receives a federal loan

The California Public Utilities Commission is expected to vote on another rate increase for PG&E customers Thursday.

If the four rate hikes from earlier this year are any indication of how they will vote, we will see more.

Utility reform advocates are encouraging people to continue to oppose rate increases.

PG&E is on track to receive a $15 billion loan from the U.S. government.

The utility says the money could help modernize the power grid and reduce costs for customers.

In a publication, PG&E said the funding could help improve battery storage and electric vehicles, improve power lines and expand and modernize substations and transmission networks.

The company submitted its loan application to the U.S. Department of Energy’s Loan Programs Office in June 2023.

The company’s CEO made a statement about the conditional loan and wrote:

“Investing in a clean and resilient grid for Northern and Central California will deliver significant safety, reliability and economic growth benefits for our customers. The DOE loan program can help us accelerate the pace and impact of this work, supporting thousands of living wage jobs at a lower cost to our customers.

According to TURN (The Utility Reform Network), the interest rate the utility would receive from the federal government instead of a corporate structure will be lower in the long run.

Before energy customers get too excited about the prospect of lower bills, TURN CEO Mark Toney warned that the costs could still put a dent in your wallet.

“It’s a loan and guess who’s going to pay it back. It won’t be the shareholders. Our monthly bills will be you and me,” Toney said.

“So that alone doesn’t lead to a reduction in tax rates. It will lower tax rates if the commission says, you know what PG is.”&E They have to use some of that money to cut interest rates, that would be an example.

The conditional loan still needs to be finalized.

Toney said if so, his organization would push for proper oversight of how the money is spent.

In addition, loan interest rates for PG could rise again&E customers as the CPUC will meet again on Thursday.

“There are two more tariff hikes for PG&E on the agenda,” Toney said.

“If both are passed, that would be six tariff increases in one year. This is record-breaking. People are already paying an average of $60 more each month than they were at the end of last year.”

Toney said customers need to attend or call the CPUC meeting on Thursday, Dec. 19 at 11 a.m. to speak out against further rate increases and to continue to contact their legislators and the governor’s office.