Some local PG&E customers are fired up after learning the rate decrease announced by PG&E on Thursday, actually translates to an increase for them. And that's not all. PG&E is requesting another rate increase as part of its tier restructuring plan.
PG&E spokesman Denny Boyles says the increase they're requesting comes with more rate cuts for top users, but some of those bottom tier customers will see a rate increase if the plan goes through.
Yvette Ward, is a single mom, running a household on a single income. She's frustrated after learning about PG&E's announcement to increase her rate for electricity. Ward says she's done a lot to keep her energy bills down and stay in those bottom tiers. "What are we getting now, we're getting punished," said Ward. Despite her conservation efforts, the company's summer rate relief plan actually holds a rate increase for her. "They're taking away from the higher usage, but then they're getting it back because they're raising those that are managing their usage," said Ward.
PG&E's announcement Thursday of the rate relief plan approved by the California Public Utilities Commission, is revenue neutral for the company. Top tier customers will get a large break, some as much as 20 percent, but moderate users in tier three will see almost a two-percent increase. "That half cent rate increase in tier three is spread out over most of our customer base and that allows us to basically make our rates more equitable."
"You have to remember when we pay our PG&E bills we're not just paying for cost. PG&E's rates are inflated and they can and should come down," said Mindy Spatt with TURN. The Utility Reform Network, (TURN) is angry about another PG&E rate increase request that will be heard by the CPUC in Bakersfield next week. "We don't believe the rate increases they are proposing are in any way justified," said Spatt.
Boyles says in the future there could be more rate decreases for the top tiers, in fact the highest energy users would top out at about 30-cents per killowatt hour compared to the current 40 cents. But again those lower tiers would see increases, as much as five-percent a year. "Customers in those lower tiers have not seen a rate increase at all since 2001," said Boyles.
The CPUC hearing is Thursday, May 27, in the Bakersfield City Council Chambers at two and seven p.m. The public is invited to take part in the hearings.
