COMP NEWS – PG&E, an electricity provider in California, is raising the cost of its electricity, stating that inflation has made electricity more expensive.

PG&E is once again raising its monthly rates – The state’s Public Utility Commission approved the higher electricity costs on Thursday. PG&E’s monthly electric bills are going up more than 9%. The decision approved by the California PUC allows for the second rate increase this year.

The utility company is pointing to a higher cost of purchasing electricity as the reason behind the jump in price.

PG&E estimates that monthly bills are going to be around $14 higher a month.

PG&E spokesman Paul Doherty says their estimates show the average residential customer would see an increase of $14 a month for electricity.

However, many customers are stating that this estimate is inaccurate because it doesn’t take their earlier price increase into account. PG&E already raised their prices once this year.

Mark Toney is the executive director of The Utility Reform Network also known as “TURN.” Toney argues PG&E’s numbers do not take into account the jump in utility costs that went into effect on the first of this year. PG&E customers are actually looking at a 20% rate increase, according to Toney.

Customer advocates are suggesting that California’s public utility commission put an inflation cap on PG&E’s electricity costs. They are worried that the continuous inflation of electricity costs will indirectly harm the environment by forcing people to choose less clean energy options.

Customer advocates suggest the PUC put an inflation cap on utilities. By allowing PG&E to continue to raise rates, Toney says the PUC is potentially hurting the state’s clean energy goals.

For example, if electricity is more expensive than gas, people will likely choose the cheaper, dirtier option.

To read more about inflation driving up electricity costs in California, click here.

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