CALIFORNIA, USA — PG&E customers could be in for a rate increase after state utility regulators released two rate proposals for PG&E this week.
The higher rates would help fund a plan to put power lines underground and insulate overhead lines.
PG&E's four-year budget, proposed to the California Public Utilities Commission (CPUC), initially called for a rate increase that would boost its revenue by 26%, but two proposals released by the CPUC would increase revenue by up to half that with one proposal at 13% and a second at 9%.
PG&E asked for more revenue to help fund a plan to bury 2,100 miles of power lines to prevent wildfires.
In a statement to ABC10, PG&E spokesperson Mike Gazda said the utility company would use the funds to "further reduce wildfire risk, improve safety and climate resiliency, and support the continued growth of clean energy."
Numerous wildfires have been sparked by power lines, including the 2018 Camp Fire that killed 85 people.
PG&E argues putting lines underground would reduce wildfire risk by 98%, compared to installing covered conductors, which they said reduces wildfire risk by less than 65%. However, consumer advocates said burying lines is expensive and takes time.
Plans proposed by the CPUC would put a portion of the lines underground and install a covered conductor on the rest. Under one plan, drafted by Administrative Law Judges, 200 miles of lines would be put underground and 1,800 would have covered conductors installed on them. The other plan, by Commissioner John Reynolds, would put 973 miles of lines underground and install a covered conductor on 1,027 miles.
Consumer advocacy group, The Utility Reform Network, also known as TURN, said the rate increases are too high.
"You need to contact the CPUC, you need to contact your elected senators and assembly members and tell them, 'Enough is enough. There should not be rate increases above cost of inflation,'" said Mark Toney, executive director of TURN.
How much the plan would increase customer's bills is unclear. When asked by ABC10, PG&E said they are still analyzing the proposals to determine the potential impacts to customers.
TURN estimates customers will see an increase of up to $28 per month or more than $300 per year.
Toney said his group is fighting for a cap on rate increases.
"We want the legislature to adopt an inflation cap and the CPUC to adopt an inflation cap that says you cannot increase monthly bills more than inflation on a yearly basis," he said.
PG&E responded to the CPUC's proposals Thursday. PG&E said there will be no rate adjustments to customers until after the CPUC issues and approves a final decision.
PG&E's Corporation Executive Vice President, Corporate Affairs and Chief Sustainability Officer Carla Peterman said, in part, "While the proposed decisions support some important programs, they fall short in funding critical wildfire mitigation, gas safety and reliability programs that benefit our customers and hometowns.”
PG&E said the proposals significantly reduce underground mileage for the power lines and reduce funding for PSPS.
The commission is scheduled to consider the two proposals at a meeting on Nov. 2.
Members of the public can provide input to the CPUC through a dedicated ‘Public Comments’ section on the meeting’s docket card by clicking here.
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