FRESNO, CA – Mayor Jerry Dyer and City Council President Luis Chavez this week called on Pacific Gas and Electric’s (PG&E) regulatory authority, the California Public Utilities Commission (CPUC), to freeze electricity rates.
On Thursday, the General Administration item to oppose PGE rate hikes unanimously passed 7-0 during the Fresno City Council meeting.
The following press release was sent out Thursday afternoon:
The call comes as Central Valley residents endure another scorching summer, and as PG&E is asking the CPUC to approve a 22% residential rate increase for the years 2023 to 2026.
The first-year increase alone would be 18%. PG&E’s request would also affect low-income customers enrolled in the California Alternate Rates for Energy (CARE) program, who would face an 18.3% first-year increase.
The upward trajectory of PG&E’s rate increases are unsustainable and unacceptable to Mayor Dyer and Council President Chavez because they place an oppressive burden on residents in a city where more than 23% of residents live in poverty and because, overall, they are grossly unfair to Central Valley residents.
“I am writing to express my extreme concern over PG&E’s proposed rate increase request, as well as the overall inequitable electricity rate structure we currently endure in the City of Fresno,” Mayor Dyer said in a letter to the CPUC. “When I began my term as Fresno’s Mayor, I outlined my One Fresno vision, where all citizens have access to an improved quality of life. Unfortunately, enormous PG&E bills are a significant threat to most of our disadvantaged communities and struggling families trying to make ends meet.”
A recent study by the Haas Energy Institute at UC Berkeley, in conjunction with CAL Matters, found that customers enrolled in the CARE program pay more than the average American for undiscounted energy, and PG&E customers pay close to 80% more per kilowatt-hour (kWh) than the national average. PG&E’s kWh price includes costs like a Wildfire Fund Charge and Electric Public Purpose Program, and Nuclear Decommissioning subsidies that are disproportionately paid by San Joaquin Valley customers – which includes Fresno.
When learning of the 22% rate increase proposal, Council President Chavez stated, “What PG&E is proposing is unacceptable! They are requesting to raise rates as high as 18% in the first year to our residents, which includes families on the discounted CARE rate. The fact this increase includes our most vulnerable families already struggling is horrendous.”
The PG&E rate models which demonstrates usage of “typical” customers does not accurately reflect Fresno or the Central Valley. Due to the Valley’s climate, residents buy more electricity annually than coastal, northern or mountain regions, which means Valley customers unfairly carry an excessive and disproportionate share of the burden.
The Mayor has requested the CPUC and PG&E to consider the following:
- Freeze current rates until equitable rate reforms and spending control measures to offset rate increases are implemented
- Internal utility cost cutting and budget analysis to include a deep cutting of spending and expenses within their existing organization
- Rate Reform should include the following:
- A fair and equitable spread of charges across the entire service territory
- Regional rate setting models to better reflect those receiving service
- Remove charges from the volumetric kWh that are not directly related to the cost to procure and deliver electricity. This includes but are not limited to Wildfire Fund Charges, Electric Public Purpose Program, and Nuclear Decommissioning
“We do not make this appeal lightly and are aware of its extreme magnitude. Today’s vote by the City Council affirms our united belief that these unsustainable rates have caused a crisis not only here in Fresno, but for many throughout the State,” said Mayor Jerry Dyer.
The CPUC will hold Public Participation Hearings later this year to provide residents an opportunity to speak publicly regarding the requested rate increases. The Mayor has requested the CPUC to hold hearings in Fresno.
The following link can be used to provide information regarding the PG&E rate proceedings, or to submit a public comment to the CPUC. – Proceeding Details (ca.gov) Additionally, contact the CPUC Public Advocates office by phone at (415) 703-1584 or email at [email protected] .
