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California Approves To Increase Utility Bills Over Recent Wildfires

Pacific Gas & Electric Co. is facing financial pressure due to lawsuits stemming from speculation of their equipment sparking a deadly Northern California wildfire.

In September, Gov. Brown signed the law allowing utility company’s to charge ratepayers increased utility costs to prevent serious financial trouble for utility PG&E.

Read on To learn how PG&E’s recent financial trouble will affect energy rates in the near future.

Financial Turmoil

Currently the 2018 Woolsey Fire near Los Angeles death toll has risen to 79, with more than 600 people have now reported being missing. PG&E is facing potential liability for the deaths and enormous property loss. Shares of the ulitity has declined as much as 32 percent on Thursday and are down 63 percent since Nov. 8. This has caused the company’s market value by $15 billion.

The head of the California Public Utilities Comission head Michael Picker stated, “He couldn’t imagine allowing the state’s largest utility to go into bankruptcy in the face of potential liability from the state’s deadly wildfires.” Proceeding this statement, PG&E’s stock rose 38% on hopes of a bailout for the utility company.

In order to keep its investors intact, they need to boost revenue in order to combat its credit rating and shares decline since the 2017 fires. Wildfires continue to threaten PG&E’s ability to maintain the investment necessary to support its system and meet California’s clean energy goals.

Rate Increase Request

PG&E stated that its rate increase justified a higher profit allowance than an average utility is allowed to earn. They cited a California legal standard holding utilities entirely liable for damage caused by their equipment regardless of whether the company was negligent.

The bill that Gov. Brown has passed, will make it easier to raise rates to pay off their lawsuits, but they still face the dangerous risk for the current fires ongoing as of right now.

PG&E is requesting a 9.5 increase in transmission charges to ratepayers to cover their current and upcoming financial lawsuits. PG&E will also be conducting strengthening and hardening their electrical systems in order to prevent more wildfires in the future. During this process, there will be several down periods and additional rate increases to cover the upgrades.

Take Your Energy and Storage In Your Own Hands!

Electricity Rates WILL Be Increasing In The Near Future To Cover the Devastating Damage Caused By the Wild Fires In 2018

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