Briefing Document: Date:
October 26, 2024
(Based on the context of the January 2025 rate mentioned)
Subject: Community Outrage and Analysis of PG&E Energy Costs
Sources: Mill Valley - NextDoor 186 comments
Executive Summary:
This document analyzes a lengthy online forum discussion regarding concerns
about recent, dramatic increases in PG&E (Pacific Gas & Electric) bills among
residents of Marin County, California.
The discussion highlights widespread outrage and financial hardship due to
high energy costs, with numerous residents reporting bills in the hundreds and
sometimes thousands of dollars, even in smaller homes and with conservation
efforts in place.
The discussion also delves into the complex web of potential causes for the
increase, ranging from PG&E's business practices to the regulatory failures of
the California Public Utilities Commission (CPUC),
and
includes a debate about the role of California's
Governor in the crisis.
The main concerns are:
Exorbitant PG&E bills: Many residents report shockingly
high bills, far exceeding previous rates and even costs in colder climates.
Ineffectiveness of Conservation: Many individuals
detailed extensive efforts to conserve energy, including using smart
thermostats, installing thick curtains, and adjusting their heating habits,
with little to no reduction in their bills.
Questionable PG&E Practices: There is deep distrust of
PG&E as a for-profit utility, with accusations of greed, rate gouging, and
prioritizing profits over customer well-being.
Regulatory Failure: Strong criticism is leveled at the
California Public Utilities Commission (CPUC) for its perceived complicity
in allowing PG&E to raise rates. Some even suggest that the CPUC has been
working in concert with PG&E and its executives.
Political Entanglements: There is debate about the role
of California's Governor Newsom, and if his administration has any
responsibility in the high cost increases.
Systemic Issues: The belief that the price increases
aren't a result of only one bad decision but more a decades long systemic
failure.
Main Themes and Key Ideas:
Dramatic Bill Increases:
Residents from various neighborhoods (Shelter Ridge,
Strawberry, Tamalpais Valley, etc) share experiences of significant
increases in their PG&E bills, often doubling or tripling compared to
previous months or locations, despite the size of the home.
Examples include:
Maxine Chernoff: "I just received my December bill
which, for the second month in a row, the total charges were more than
$550." for a 1300 sq ft home, compared to a previous maximum of $235 for a
similarly sized home.
Tim M.: "$567 for 1500 sq ft (gas)."
Numerous other examples of bills exceeding $500,
$600, and even $1000 for relatively small homes. Some are in the $800-$900
range and one is $5,000.
Many residents describe their disbelief and
frustration with these costs, especially given their efforts to conserve
energy.
Ineffective Conservation Measures:
Many users state that they are employing standard
energy-saving tactics (lowering thermostats, turning off lights, etc.) and
still getting high bills.
Some examples of extensive energy-saving measures are:
"I keep my heat at 65 during the day and off at
night." - DK.
"Keep the coldest room entirely closed off for about
4 months, keep ceiling fan on winter setting on low in the rest of the
house, wear warm clothes/layers and fur lined boots, turn water heater down,
etc." - PR
Using smart thermostats and time-of-use billing.
"We turn the heat way down to the low 50's at night
and no higher than 65 during the day as we wear warm pants, sweaters etc. in
the winter." - DD
The lack of correlation between effort and results
leads many to believe the problem is not personal usage, but systemic issues
with PG&E rates and billing.
PG&E's Role and Business Practices:
A strong sense of distrust towards PG&E is
prevalent.
Many accuse PG&E of prioritizing profits over customers, citing CEO
Patricia Poppe's multi-million dollar
compensation as evidence.
"In 2023 PG&E CEO Patricia
Poppe was paid $17 million in compensation. Not sure what she was
paid in 2024."
"...while jacking up our rates nonstop."
There is also an underlying assumption that PG&E is using rate increases
to recoup losses from previous mistakes and natural disasters, instead of
taking responsibility for their actions.
"Lyndasue Johnson ...I called PGE who was very
matter if fact that we are paying for the fires.! Wow"
Some individuals claim PG&E spends more money on marketing and public
relations than actually improving services.
"PG&E needs the money to pay the massive amount of
daily commercials promoting how wonderful they are." - MK
Some suggest that the prices are so high that they are forcing people to
live in hardship, which is not the normal practice for a necessary public
utility.
CPUC Complicity and Regulatory Failure:
The CPUC is heavily criticized for its lack of
oversight and for allowing PG&E to raise rates with little to no pushback.
Users accuse the CPUC of "rubber stamping" any rate increase that PG&E
requests.
"They give the utility every raise they ask for and
for however much they’re asking for. Called ‘rubber stamping’" - KG
There are accusations of a cozy relationship between the CPUC and PG&E,
with a former PG&E installer and former CPUC member being used as examples.
"The PUC, rather than Newsom, has been in bed with
PGE for DECADES. ... The PUC for years allowed PGE to artificially increase
their rates..."
"One former member of the PUC has gone rogue and
exposed some of the abuses, Ms. LL"
Many believe the CPUC has failed in its role as a
regulatory body and has instead enabled PG&E's exploitative practices.
Political Debate and Newsom's Role:
Some users blame Governor Newsom directly for the high rates, citing his
appointments to the CPUC and his perceived "bed" with PG&E executives.
"Thank Mr Newsom and his PG&E French Laundry pals!"
- CP
"Gavin appointed most of the cpuc. Gavin took
kickbacks from PGE to allow price gouging." - JW
Others argue that the problem is systemic and predates Newsom's tenure,
with the CPUC's issues going back decades.
"...it’s disingenuous to blame it all on
Gavin Newsom." - DQ
"This isn’t the fault of one administration, it has
been going on for decades. The CPUC has been
complicit and enabling." - EF
The political discussion also touches on the fact that CA is a one-party
rule state and that obfuscation will not fix the problem.
"Respectfully, CA has been a one-party state for
decades. Obfuscation will not solve the problem. Elections have
consequences." - E
The political debate also extends to calling out the fact that a public
utility shouldn't be a for-profit business.
"That’s what happens when you make a public utility
a for-profit enterprise, which happened long before Newsom. How’s that
working out?" - MTr
Calls for Action and Solutions:
Some individuals suggest that the CPUC should be
fired and PG&E's monopoly should be broken.
Some people are looking for solutions like solar
panels or switching to gas heat pumps.
Some individuals advocate for more conservation
efforts.
"Turn your thermostat down at night when you
sleeping. Turn it down when you aren't home. You need invest in Google
nest." - MW
"Start thinking about ways to save." - MW
There's also some suggestions to improve home insulation through weather
stripping and attic insulation.
"pop your head into your attic and see what your
insulation looks like." - Andrew Tanner
Some users are starting to consider moving to off-peak billing and
replacing their current thermostats with smart ones.
"We just moved to off peak hours billing which I
think helped a bit." - EO
There is a general sense of helplessness, with
individuals wondering what they can do to change the current situation.
"Seriously is there anything we can do about PG&E?
Anything?" - DK
Specific Facts and Data:
High Electricity Rates in CA: "The average residential
electricity rate in California as of January 2025 is about
0.65 cents per kilowatt-hour (kWh),
Delivery + Generation"
PG&E CEO Compensation: "In 2023 PG&E CEO
Patricia Poppe was paid $17 million in
compensation."
Increase in Gas Costs: Some individuals note increases
in the cost per therm of gas.
"Two years ago PG&E charged us about $2.23 for a
therm of gas, last year $2.04 and this year $2.73" - George Topor
Conclusion:
The forum discussion reveals a community deeply concerned and financially
burdened by escalating PG&E costs.
While individual circumstances vary, the pervasive nature of these high bills
suggests a systemic problem that extends beyond individual energy consumption.
The blame is placed both on PG&E's practices as a for-profit utility and on
the CPUC's lack of regulatory oversight. While there are political questions
about the role of the governor in appointing the people who make up the CPUC,
the forum points out that this problem is bigger than any one person or
political party and is a result of many decades of complicity. The community
is actively seeking solutions and accountability from those responsible for
the current situation, though most feel they are helpless and stuck.
This briefing document highlights the severity of the situation and the
urgent need for a thorough investigation and potential reforms of California's
energy policies and regulatory practices.
