PG&E on Tuesday proposed an increase in rates that would, if approved by state regulators, lead to higher electricity and gas bills for the company’s customers, according to an official filing.
The utility giant is asking for a 2.5 percent increase in revenue, which would go into effect starting in early 2017, if the state Public Utilities Commission agrees to the proposal. The rate increase proposal applies to the years 2017, 2018 and 2019. A final decision from the PUC on the proposed increase is expected in late 2016.
San Francisco-based PG&E said its typical residential customers would experience an increase of an average of $4 a month in their power and natural gas bills.
“We need the funds for new things that will enable us to be the safest and most reliable gas and electricity provider in the nation,” said Keith Stephens, a PG&E spokesman.
The electricity bill for residential customers would rise by an average of $3 a month, while gas bills would increase $1 a month, Stephens said.
The proposal drew swift criticism from consumer advocates.
“These appear to be increases that could hit consumers very hard,” said Mindy Spatt, a spokeswoman for The Utility Reform Network, a consumer group. “An increase of $4 a month is not insignificant for many customers.”
The utility has been under fire for how it uses its ratepayer revenue in the wake of a fatal explosion of natural gas in San Bruno nearly five years ago.
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