The Monster Under Your Bed Is Real: PG&E’s Rate Hikes Are Coming for You

Opinion by Richard Friesen and Dave Johnson

When the lights flicker, PG&E becomes a nightmare you can’t escape. For seniors and fixed-income families in Santa Clara County, the squeeze feels like a boa constrictor tightening around their chest. The affluent might shrug off a $400 annual increase (2024’s reality), but for those scraping by on Social Security or starter wages, it’s a monster under the bed—real, relentless, and growing.

This isn’t just financial strain; it’s a handicap to human flourishing—emotional despair, physical risks from unheated homes, and a future that’s darkening fast.

How Did This Happen?

PG&E’s rates soared from 25 cents/kWh in 2020 to 42 cents/kWh in 2024—a 68% leap—due to:

●      Wasteful Overspending: PG&E blew $9.3 billion on vegetation management (2017–2020), double the $4.7 billion authorized, with no proof it worked (nbclosangeles.com, 2024). Critics like TURN’s Mark Toney call it a blank check from ratepayers.

●      Wildfire Fallout: A $30 billion liability from 2017–2018 fires led to a 2019 bankruptcy, repaid via the Energy Cost Recovery Amount—your money funneled to shareholders, not safety.

●      Fraudulent Diversion: A 2022 audit found $1.8 billion meant for safety upgrades vanished into executive bonuses and dividends (calmatters.org).

●      Executive Compensation vs. Maintenance: Historical critiques (e.g., calmatters.org, 2019–2023) note PG&E diverted funds meant for pipeline maintenance and vegetation clearing to executive bonuses and dividends. A 2022 audit found $1.8 billion intended for safety upgrades was unaccounted for or misallocated, hinting at fraud or gross negligence. In spite of this, the CEO received a total compensation of $102,000,000 from 2020 to 2024 (estimate) and all executives received a total of 230,000,000.

●      Profit Over People: PG&E’s 8–10% guaranteed return rewards bloated projects (e.g., undergrounding lines) over cheaper fixes like covered conductors.

●      Green Energy: Long-term solar contracts and grid upgrades for EVs and renewables add ~6–9 cents/kWh (14–21% of rates). PG&E’s “clean energy” excuse masks deeper mismanagement.

●      Political Corruption: PG&E is both the beneficiary of political power and also a contributor to political figures. The Washington Post in 2019, documented PG&E’s $700,000 in contributions to Newsom’s campaigns and his wife’s film projects. The recently published book, “Fools Gold,” alleges that Newsom and his wife, Jennifer Siebel Newsom, received hundreds of thousands of dollars in donations from PG&E and its executives, after which Newsom supported policies, including the 2019 AB1054 legislation, that provided financial protections to the utility following its role in causing devastating wildfires.

The Nightmare Ahead: Cost Forecast

Without change, PG&E rates will devour more of your budget, creeping higher each year:

●      2025: 46 cents/kWh, $184/month—an extra $12/month ($144/year) over 2024’s $171.86/month ($2,064/year).

●      2027: 54 cents/kWh, $216/month—an extra $44/month ($528/year) compared to 2024, piling on as costs accelerate.

●      2030: 68 cents/kWh, $272/month—an extra $100/month ($1,200/year) above 2024, a crushing leap that could break fixed budgets.

For seniors on $1,800/month, that’s 15% of income by 2030—up from 9.5% today. A 71-year-old paying $450/month now could face $700/month, choosing between heat and healthcare. This isn’t a forecast; it’s a warning.

However, this simple projection is complicated by usage tiers, which can push even low-income users into prohibitive rates.

Seniors Under Siege

Santa Clara County’s 285,000 seniors (15% of 1.9 million residents) are hit hardest. With incomes often at $40,000–$60,000 (vs. the county’s $130,000 median), a $400 jump is a gut punch. Thirty percent are already “cost-burdened,” and 12% live below poverty. Rural seniors near Morgan Hill lack Silicon Valley Power’s $0.15/kWh lifeline. CARE discounts help (20–35%), but caps exclude many, and enrollment lags.

A Way Out: Reinventing PG&E

A hybrid system could tame this monster:

●      Retail Choice: Let competitors sell power over PG&E’s grid, forcing it to vie for your dollar.

●      Community Oversight: Elect local boards to audit PG&E and veto waste.

●      Performance Pay: Tie PG&E’s profits to lower rates (e.g., $0.30/kWh = 12% return; $0.42/kWh = 0%). Savings get rebated to you.

This could slash rates to $0.30/kWh, saving $300–$600/year per household—life-changing for seniors. But the fat cats profiting off waste will fight it tooth and nail.

Act Now—Before YOUR Lights Go Out

Call to Action: Slay the Monster Before It Devours You

The monster under your bed isn’t just real—it’s coming for your wallet, your warmth, and your peace of mind. By 2030, PG&E could siphon an extra $1,200 a year from you unless we act now. Here’s how to fight back today:

Support Your Republican Representative: Bypass the corruption in the Democrat Party.

FIRST: Contact the City Council in the City of San Jose.  Contact your County Supervisor.  Attend one of the coffees held by Marc Berman or Sam Liccardo (just to name a couple of people who send us their invites) and go and ask simple, basic common sense questions.

THEN:  Sign up to become a member of the Republican Party of Santa Clara County.  Go to SVGOP.com.  Let us know that you are “IN” for the fight.  We need lots of support via money AND volunteers if we are going to “Take Back California”.

Demand Accountability: Call your state representative—find them at https://findyourrep.legislature.ca.gov/—and demand a full audit of PG&E’s spending plus laws for retail energy choice. Your voice can force transparency.

Join the Resistance: Link up with groups like TURN (The Utility Reform Network, turn.org) to push for ratepayer protections and community oversight. Power grows in numbers.

Sound the Alarm: Share this article with neighbors, friends, and especially seniors—post it on X, email it, or hand it out. Awareness is the first strike against PG&E’s unchecked greed.

Shield Yourself: Enroll in CARE/FERA (pge.com/care) or Medical Baseline (pge.com/medical baseline) if you qualify—don’t leave money on the table while rates climb.

This isn’t just about survival; it’s about taking back control.

Act today, or brace for a darker, colder tomorrow.