PG&E Updates: Rate Assistance Expansion & Nuclear Plant Fee Scrutiny

Pacific Gas and Electric Company (PG&E) is currently under scrutiny regarding the fees collected to support California's last nuclear power plant, Diablo Canyon, while simultaneously expanding access to rate assistance programs. The California Public Utilities Commission (CPUC) is expected to finalize a plan concerning how PG&E will manage and report the use of a controversial statewide fee designed to keep the Diablo Canyon plant operational. Critics, including consumer and nuclear safety advocates, argue the current oversight level is insufficient and could result in a "slush fund" benefiting shareholders.

Diablo Canyon Fee Under Debate

Matthew Freedman, a lawyer for The Utility Reform Network, suggests the CPUC is relinquishing control, allowing PG&E undue influence over the fund's allocation. PG&E, however, maintains that the existing regulatory authority is adequate and resists further restrictions on utilizing the fee, arguing flexibility allows for cost control benefiting customers. Originally slated for closure due to economic factors, Diablo Canyon’s operations were extended to 2030 to bolster California's energy security during its transition to renewable energy sources.

Expanded Rate Assistance Program

In parallel, PG&E has broadened its Family Electric Rate Assistance (FERA) program, making an estimated 150,000 additional customers eligible for an 18% discount on their electricity bills. Previously, only households with three or more individuals qualified; the revised criteria now include one- and two-person households meeting specific income requirements. A one or two-person household earning up to $52,875 annually may now qualify.

FERA Program Details

In 2024, over 39,000 PG&E customers enrolled in FERA received discounts totaling more than $21 million, averaging over $45 in monthly savings. Vincent Davis, PG&E’s senior vice president of customer experience, emphasizes the expansion's significance in delivering meaningful savings and encourages eligible customers to apply.

  • California Alternate Rates for Energy (CARE): Provides a monthly discount of 20% or more on gas and electricity bills.
  • Relief for Energy Assistance through Community Help (REACH): Offers a one-time bill credit of up to $300 for eligible customers.
  • Low Income Energy Assistance Program (LIEAP): A federally funded program providing a one-time payment for past-due bills.

The expansion of FERA follows Senate Bill 1130's passage in 2024, eliminating the previous household size requirement and mandating utilities to report enrollment efforts to the CPUC. PG&E offers additional assistance programs like the California Alternate Rates for Energy (CARE) which provides a discount of 20% or more on gas and electricity bills.

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