PG&E gouging its customers?

[Steve C]

Isn't the PUC supposed to monitor this type of behavior?

http://sanfrancisco.cbslocal.com/2017/04/19/pge-executive-raises-grow-despite-criminal-negligence-ruling-soaring-rates/

[jflorey2]

Isn't the PUC supposed to monitor this type of behavior?

You've got that backwards. The PUC sets rates, not the utility. The utility can ask for whatever they want, but unless the PUC approves it it doesn't happen.

So a better title would be "PUC gouging citizens?"

[sensij]

The CPUC doesn't directly approve executive compensation, does it? Kind of sticky when that expense is embedded in the costs that ultimately justify the rates.

[emartin00]

Once you reach the CEO level, you pretty much get paid no matter what. Until they decide to fire you, then you get a hefty severance package.

[jflorey2]

The CPUC doesn't directly approve executive compensation, does it? Kind of sticky when that expense is embedded in the costs that ultimately justify the rates.

Right. But they do have to justify the rationale behind price increases; they have to demonstrate that it advances the public good. If their rate increases have no justification behind them (i.e. they're not tied to improving reliability, or adding capacity, or improving safety) then they get rejected - at least, when the PUC is working the way it's supposed to.

Public utilities are strange beasts. They are private companies that get granted monopolies, but in return they have to submit to control from a board that is (in theory) elected by people in the area they serve. They exist in a sort of limbo between government and private business. PUC's have to know the utilities well enough that they can understand their arguments when they ask for a price increase, but can't be so tied to them that they act in the best interests of the utility and not the people. All too often, that line gets blurred.

[SunEagle]

Right. But they do have to justify the rationale behind price increases; they have to demonstrate that it advances the public good. If their rate increases have no justification behind them (i.e. they're not tied to improving reliability, or adding capacity, or improving safety) then they get rejected - at least, when the PUC is working the way it's supposed to.

Public utilities are strange beasts. They are private companies that get granted monopolies, but in return they have to submit to control from a board that is (in theory) elected by people in the area they serve. They exist in a sort of limbo between government and private business. PUC's have to know the utilities well enough that they can understand their arguments when they ask for a price increase, but can't be so tied to them that they act in the best interests of the utility and not the people. All too often, that line gets blurred.

I agree that in some states the PUC seems to be in bed with the POCO's or at times it seems not always looking out for the electrical consumer.

But like all politics the best way the customer can be heard is to vote out the old admin and hope the new admin will support the people.

[J.P.M.]

Really want to get even and help yourself ? Use less of their product.

[Steve C]

Thanks guys for the info. Seems to be a pretty solid "think tank" on this forum. As was stated, this is all seems too closely related to politics. And it's been a long time, if ever, that politicians but the needs of citizens before their own!

As for using less, I considered getting mice to run a wheel to power my generator, but I'm afraid they would try to unionize and I'd be back to square one!

[J.P.M.]

[QUOTE=Steve C;n348043 As for using less, I considered getting mice to run a wheel to power my generator, but I'm afraid they would try to unionize and I'd be back to square one![/QUOTE]

My 6,600 kWh/yr. gross usage is a lot less expensive, and listening to the neighbors I cooperatively monitor with similar family and home size, and who average ~ 2.5 times that usage, apparently a lot less onerous. It's also a lot easier and less expensive to replace w/ PV than larger usage. Just sayin'.

[reader2580]

Using less doesn't help because the public power companies just raise the rates stating they aren't making enough money due to selling less. The PUC here sets a rate of return for public utilities and if they don't make that they ask for another rate increase.

[jflorey2]

Using less doesn't help because the public power companies just raise the rates stating they aren't making enough money due to selling less.

Using less always helps. Those rate increases are going to happen whether you use less or not, so you might as well save money.

[J.P.M.]

Using less doesn't help because the public power companies just raise the rates stating they aren't making enough money due to selling less. The PUC here sets a rate of return for public utilities and if they don't make that they ask for another rate increase.

Sure it does. If the rates go up, your increase will be less, or your out of pocket will be less. You don't pay for what you don't use, nor do you pay more for non use on an increase. Let some other users swallow the increase. I do.

[Steve C]

If PG&E was not given a monopoly in Northern California, I find it very likely that their administrators would be lucky to be making so much money. I can't think of any customers that are satisfied with what they are forced to pay. Yes, most of us could cut usage, but we all have even the most basic energy needs. And PG&E is abusing the hell out out its advantage!

I will tell my fixed income, single TV owning, 1200sq ft. home residing, grandparents to turn off their refrigerator for a few hours a day. And cooking food "every day" is just wasteful!

[J.P.M.]

If PG&E was not given a monopoly in Northern California, I find it very likely that their administrators would be lucky to be making so much money. I can't think of any customers that are satisfied with what they are forced to pay. Yes, most of us could cut usage, but we all have even the most basic energy needs. And PG&E is abusing the hell out out its advantage!

It's just business. You and everyone else can bitch about your electric bills, but it will not impress PG & E or any other POCO one iota. What will impress them is decreased revenue.

Besides, all POCO's have a monopoly to some degree. I'd like to pay nothing. I bet most folks would. Use the control you have to help yourself and use less. You may as well fart into the wind as gum flap about how unfair your POCO is. Write a letter to the CPUC and see if it decrease your rates or some CPUC stooge's paycheck.

[reader2580]

If all electricity users manage to drop usage by say 5% then the next year the utility just asks for a 5% (or more) rate increase to make up for the lost sales. My personal electricity usage is already under 5,000 KWh per year and I hope to drop it slightly this year.