PG&E is raising its rates for both homeowners and businesses.
Power bills for homeowners will go up by an average of 9%, while small business will see a 10% rate hike and industrial facilities will see an increase of nearly 13%.The San Francisco Chronicle reports PG&E officials say they need the extra revenue to pay for skyrocketing natural gas prices. the new rate plan is set to take effect March 1st. The average PG&E customer getting electricity and natural gas from PG&E paid $202 in December 2021, which rose to $221 in January and will hit about $235 in March with these new rate changes, the company said.
The increase in rates are largely due to natural gas prices, which have shot up 25% in the past year. This is mainly due to a pandemic-driven global energy crunch, which has also driven up the cost of gasoline. PG&E customers also purchase natural gas directly, which can power household appliances like stoves, washing machines and dryers. California customers are already experiencing higher prices currently, so the additional hike in costs will only add to the rising costs.