The only thing going up faster than PG&E customer bills is the utility giant’s profits. It was recently announced that PG&E made $2.47 billion in profits in 2024, shattering its own record for the second year in a row. PG&E earned $2.24 billion in profits in 2023, an eye-popping increase of 24.6% from 2022. The good news for PG&E shareholders comes as customers have seen their monthly bills spike. Instead of working to rein in PG&E profits, the California Public Utilities Commission approved six separate price hikes in 2024.
PG&E currently charges the most for electricity among California’s three investor-owned utilities. The company’s residential electricity rates have risen more dramatically than the other utilities, jumping 128% over the last decade. In 2023, PG&E’s CEO took home $17 million while millions of customers suffered through historic rate increases.
PG&E has also been caught prioritizing costly undergrounding of power lines. At a hefty price tag of $3 million to $4 million per mile, PG&E has strong financial signals to prioritize undergrounding. State regulators allow the utility company to charge higher electricity rates to recoup all costs and earn a hefty rate of return for shareholders on their investments. Analysts think it may be discouraging cost effectiveness when it comes to wildfire mitigation.
As a less costly alternative to wildfire prevention, covered conductors, or insulated wire, prevent tree branches from contacting power lines. Analyses shows insulating wires costs a third of undergrounding, while reducing fire risk by 85%.
Once again, PG&E is only focused on doing what’s best for their shareholder’s profits. PG&E shareholders are pocketing billions while working families, farms and businesses suffer.
*PG&E Corporation, 2023 Joint Proxy Statement
