PG & E asks California PUC for higher prices, profits

PG & E California asked regulators Monday for a sharp rise in prices and profits, and increased average customer bills by more than $ 20 a month, saying that hiking is needed to attract investment capital and handle the security of the fire department when the tool strikes in bankruptcy.

Along with a previous interest rate hike proposed in December, PG & E's new request would increase average household bills by $ 22.67 per month for electricity and natural gas, which began in January 2020.

PG & E and California's Others Major tools, Southern California Edison and San Diego Gas & Electric, asked the Public Utilities Commission for closer profit margins, as they had to offer investors a much higher return to offset the financial dangers of major fire extinguishers. The requests, which must be made every three years, come as Gov. Gavin Newsom and other government officials who violate PG & Es's bankruptcy and financial health tools in general.

Utilities rarely get everything they want when they ask regulators for higher rates, and Monday's request from PG & E especially is almost certain to provoke a strong backlash from lawmakers in light of PG & E's unpopularity over the deadly firefighting areas 2017 and 2018. As it is, SB 549 by Head of State Jerry Hill, D-San Mateo, will give the legislator an expression of interest rate increases for PG & E.

Mark Toney, from Consumer Reform Network Consumer Defense, called PG & E's request "outrageous".

"It's like PG & E looking for bailouts under which stone they can find," said toney. "It's just a fantastic crowd."

The spokesman PG & E Lynsey Paulo said Monday's filing with the Public Utilities Commission reflects the tool's financial difficulties and the need to invest billions in fire safety and system reliability. Pacific Gas and Electric Co. asks the PUC to increase its return on equity – in fact, maximum profitability – from current 10.25 percent to 16 percent.

"This is not the best or the preferred solution," she said, adding that PG & E wants to "reduce the question" and is open to discussing options with government officials who will reduce the size of the increase.

Due to the economic disadvantage of the tool, PG & E argues that it must give investors a higher return to lure capital. "In order to invest in the affordable, secure, reliable and clean energy day our customers expect and demand, investors must continue to play an important role in providing the capital needed to fund important security and reliability infrastructure upgrades," said PG & E finance director Jason Wells said in a prepared statement.

But Toney said the request would simply produce "a fall to Wall Street."

At the same time, Southern California asked Edison PUC to increase its maximum profit margin to 16.6 percent – up from 10.3 percent – "to compensate investors for the higher risks associated with uncertain government policy on utility costs and liability arising from California's devastating fire traps." The proposal would increase customer bills $ 12.20 per month.

SDG & E wants to The profit margin increased from 10.03 percent to 14.3 percent, but it was not clear how much higher prices would grow in San Diego.

Earlier this month, Newsom proposed to change China's liability law to provide PG & E and other tools with greater protection against the cost of future fire extinguishers. Utilities have been pushing for change since 2017, saying that the state's legal doctrine of "inverse condemnation" is subject to huge commitments if the equipment fires – even if the companies have not been negligent.

Newsom argued that tools can "It is not expected to carry the whole well of fire traps in an era defined by climate change and increased fire risk. At the same time, Newsom says PG & E and its shareholders will be held responsible for Norway's Camp Fire – the deadliest and most destructive in California's history – as well as past disasters. "The state has suffered from their neglect," he said.

His stories did not immediately prompt questions about PG & Es's recent request.