PG&E's 2024 Rate Hike: How California Businesses Are Fighting Back
After recent deliberations of Pacific Gas & Electric (PG&E) proposing a 22% electricity rate increase, businesses in California have new financial and operational considerations to make in 2023. While only one of the three investor-owned utilities in California, PG&E will likely influence other utility providers such as Southern California Edison (SCE), San Diego Gas & Electric (SDGE) and other municipal utilities, to request rate increases with the same justification.
PG&E’s justification centers on the rising costs of inflation, the high price of wholesale natural gas, and the need for significant risk reduction projects like placing 2,100 miles of power lines underground. From a PG&E proposal on submitted on September 13, 2023, these oral arguments were in a recent CPUC meeting covered by ABC. A decision is expected when the CPUC holds their next voting meeting on November 2, 2023. With the average residential customer potentially facing a $50 increase in their monthly bill, the financial strain will also be felt by California businesses.
Not all businesses are ready for the effects, many already have turned to sustainable solutions that have shielded them from the incessantly rising costs of electricity. Revel Energy has experience equipping facilities throughout California with commercial solar and energy storage systems that not only reduce reliance on utilities but hedge those businesses against constantly-increasing electricity rates.
Public Pushback at CPUC Hearing on October 18, 2023
Kary Morsony, an attorney for The Utility Reform Network, expressed the sentiments of many when she said, “Customers in California are hurting. They have been for a while. Energy burdens have been growing.” Kevin Johnson of the California Farm Bureau Federation also weighed in, pointing out the over-reliance on ratepayers as an “endless piggy bank.”
PG&E is requesting that the CPUC approve the electricity rate increase on top of their already-established general rate case (GRC) in a proposal on September 13, 2023.
Against this backdrop, businesses that have partnered with Revel Energy stand as testimony to the fact that there are viable alternatives to relying solely on traditional utility providers. These businesses have not only managed to sidestep these rate hikes but have also enhanced their green and ESG initiatives by adopting sustainable energy solutions.
This graphic illustrates a consistent 10-year history of rising electricity rates not just from PG&E but California’s other IOU’s SCE and SDGE from a recent study on California’s 3 investor-owned utilities. As California businesses pay higher and higher electricity costs to both municipal and investor-owned utility providers, many commercial real estate and business owners have recognized the opportunity to take control of their electricity costs with commercial solar and energy storage.
Impending Decisions to Come November 2, 2023
The CPUC’s impending decision on Nov. 2, 2023 whether approving PG&E’s proposed hike or the counterproposal of a 12% electricity rate increase, will have ramifications for every electricity consumer in the state. In this hearing, the CPUC is expected to decide on a few other key guidelines such as VNEM/NEMA and prevailing wage requirements through AB2143.
In these uncertain times, it’s comforting for businesses to know that companies like Revel Energy are working diligently to offer alternative solutions that keep operations running smoothly, without the looming shadow of exorbitant electricity bills.
With the trajectory of electricity rates uncertain, it’s an opportune moment for businesses to reevaluate their energy strategies. As history has shown, turning to experienced partners who understand the landscape can make all the difference. Contact our expert team today to learn what solutions may be available for your California business.
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