PG&E’s Broken Promises: Profits, Rate Hikes and Discontent

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PG&E’s recent actions have sparked outrage as they continue to break promises amidst soaring profits, executive compensations, and relentless rate hikes, disproportionately impacting low-income and middle-class families. The supposed watchdog, the CPUC, appears to be in collusion with the utility giant, facilitating their unchecked pursuit of profit.

Profits Surge, Rates Skyrocket

In 2023, PG&E reported a staggering $2.2 Billion Dollars in profits, marking a 25% surge from the previous year. Concurrently, the CPUC greenlit two rate hikes, sending power bills soaring. Post-baseline usage of 300kw, rates skyrocketed to over 55 cents per kwh. While PG&E cites grid improvements as justification, the reality is dubious. Their overall rate increase in 2023 amounted to a staggering 22.3%, warranting closer scrutiny. As profits increase shareholders of PG&E got a measly 1% of the profits.

Executive Compensation Raises Eyebrows

A closer look at PG&E’s executive compensation raises eyebrows. CEO Patricia Pope pocketed a jaw-dropping $16.99 million in salary, coupled with an additional $24.4 million in stock, totaling over $41 million. This extravagant payout, a 20% increase from the previous year, is particularly egregious given the utility’s hefty profits and relentless rate hikes, which burden customers disproportionately.

False Promises of Grid Reinforcement

PG&E’s claims of grid reinforcement, including the undergrounding of cables, have proven to be empty promises. Recent cancellations of undergrounding projects, blamed on the CPUC, highlight the utility’s deceptive practices. Despite assurances of tree trimming for grid safety, many customers, like myself, have witnessed years of inaction, revealing a scheme to prioritize executive profits over genuine infrastructure improvements.

The Latest Money Grab

The CPUC’s recent approval of yet another rate increase, effective January 1, 2026, epitomizes PG&E’s unchecked greed. The imposition of fixed monthly charges, irrespective of actual usage, disproportionately burdens solar customers like myself. Despite promises of rate reductions, the reality is a slap in the face, with solar investments rendered futile as customers face exorbitant fees for mere grid connection.

Advertising Costs Passed to Consumers

PG&E’s exorbitant advertising costs, including $7 million for television commercials alone, further illustrate their disregard for consumer interests. The CPUC’s allowance of passing these costs directly to ratepayers underscores the regulatory capture plaguing the utility industry.

A Monopoly Unchecked

As a monopoly in Northern California, PG&E should be subject to rigorous regulation to protect consumers from exploitation. However, the utility’s unchecked pursuit of profit, facilitated by regulatory capture, has resulted in record profits, executive compensations, and rate hikes. With rates soaring over 45% since 2017, consumers are left reeling while PG&E reaps unprecedented rewards.

Conclusion

The current state of affairs with PG&E is a travesty, with consumers bearing the brunt of unchecked greed. The CPUC’s failure to act raises serious questions about its integrity and underscores the urgent need for accountability. The Governor, Gavin Newsom who is responsible for placing the right people on the CPUC board has failed. As a Californian, I share in the collective frustration and call for decisive action to curb PG&E’s exploitation of consumers. The time for change is long overdue. PG&E should be bought by the state and run as a non for profit company,