Power Crazy

Repairing downed power lines in March (Merc photo)

Pacific Gas & Electric has been criticized, principally for power outages and high rates, throughout the 50 years I've lived in California.

Since the year 2000 the utility has declared bankruptcy twice, because of rising fuel costs in 2001 and wildfire liabilities in 2019. However, the over-riding reason, IMHO, is that it's impossible to meet all the goals that the regulators have set for it; any unforeseen major problem was bound to put the company under.

Exhausted from listening to their criticisms, your humble blogger advocated a takeover of PG&E in 2019 by the Progressives so that they could show how to accomplish their conflicting goals:

force the complete conversion to alternative energy from fossil-fuel sources

keep rates at current levels (or lower);

repair its aging infrastructure to prevent more San Bruno pipeline explosions

pay their unionized workers a fair wage;

bury more power lines both to prevent forest fires and to protect the public from downed lines.

The latest requirement is that PG&E has been tasked with a billing adjustment that affects millions of ratepayers in the name of "equity."

The changes would affect only those customers who receive electricity services from PG&E and its sibling power companies.

Here’s how the fixed charges would work in the PG&E service territory. The numbers are based on a four-person household:

Households earning less than $28,000 a year would pay a fixed charge of $15 a month on their electric bills.

Households with annual income from $28,000 to $69,000 would pay $30 a month.

Households earning from $69,000 to $180,000 would pay $51 a month.

Those with incomes above $180,000 would pay $92 a month.

Just how will PG&E determine its customers' income? Will it have access to and security for Franchise Tax Board data?

It's hard enough for businesses to determine pricing strategies for their products; will they now have to price differentially according to customers' income?

The Progressives who run the State government surely have the answers.