Pacific Gas and Electric Co (PG&E) has proposed increasing the monthly bills of residential customers by approximately $5.50 starting in 2026 to enhance shareholder returns. This request stems from concerns about the company's financial stability in the face of escalating investment risks, particularly due to natural disaster impacts. PG&E reported significant profits recently, citing reinvestment into infrastructure, yet faces criticism from advocates like Mark Toney, who disputes the justification for price hikes amidst an ongoing affordability crisis. The increase in the return on equity for investors is expected to improve PG&E's credit rating and borrowing costs.
PG&E's recent request would result in a roughly $5.50 monthly increase for residential customers starting in 2026, amid concerns over high financial risks.
Mark Toney, executive director of TURN, expressed his astonishment regarding PG&E's significant requested increase, highlighting the affordability crisis and record profits they reported.
Carla Peterman clarified that PG&E reinvests a substantial portion of its earnings back into the company, which leads to improvements in infrastructure and reliability.
The company's decision to increase the return on equity for investors from 10.3% to 11.3% aims to improve its credit rating and reduce borrowing costs.
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