PG&E eyes higher monthly bills, rising revenue requirement: new filing



OAKLAND — PG&E has floated a request for an additional revenue requirement in updated regulatory testimony, a proposal that could cause the average customer bill to jump several dollars, according to an official government filing.

The PG&E proposal, if state regulators adopt the plan in its present form, would lead to an increase of $7.31 in the average monthly bill for the typical customer who receives combined electricity and gas services and whose bills aren’t subsidized.

Lower-income CARE customers whose bills are subsidized would see an average increase of $4.84 a month for combined electricity and gas services.

At present, non-subsidized typical customers pay an average monthly bill of $233.67 for combined electricity and gas services, according to information provided by PG&E spokesperson Lynsey Paulo. The proposed revenue change would bring the projected average monthly bill for combined services to a new total of $240.98.

At present, electricity services alone are running at an average of $167.23 per month, while gas services cost $66.44 a month, PG&E said.

Inflation has begun to jolt PG&E to a significant extent, according to a Securities and Exchange Commission filing by PG&E Corp. and its principal operating unit, utility firm Pacific Gas and Electric Co. Inflation already represents a forbidding drain on the pocketbooks and spending power of consumers nationwide and in the Bay Area.

“Inflation may negatively impact PG&E’s and the utility’s financial conditions, results of operations, liquidity, and cash flows,” PG&E stated in the filing.

Oakland-based PG&E and its subsidiary are battling inflation on an array of fronts, the SEC filing said.

“PG&E and the utility have observed that prices for equipment, materials, supplies, employee labor, contractor services, and variable-rate debt have increased,” PG&E stated in the filing. “Long-term inflationary pressures may result in such prices continuing to increase more quickly than expected.”

The company and its utility subsidiary might find it tough to procure services and items at reasonable prices.

“Increases in inflation raise costs for labor, materials and services,” PG&E stated. “PG&E and the utility may be unable to secure these resources on economically acceptable terms.”

Oakland-based PG&E has proposed a revenue requirement of $16.18 billion in connection with its 2023 general rate case, according to the updated testimony it has provided in the proceeding. The prior estimate was a revenue requirement of $15.34 billion. The latest estimated requirement is a 5.5% increase from the prior estimate.

The state Public Utilities Commission would have to make a final decision on the revenue request before any changes in PG&E wills would occur.

PG&E also cited changes in federal tax law as having an impact on the company’s revenue requirement.

“We know that any proposed increase to our customers’ rates and bills can be challenging,” said Carla Peterman, a PG&E executive vice president.

PG&E also anticipates that customers will receive in their October bills a one-time climate credit totaling $39.30.

“We’ll continue to support customers with a variety of rate plan options, energy savings programs and tools, and financial assistance programs for eligible customers,” Peterman said.

 

 



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