PG&E customers can expect to be jolted by increases in monthly electricity and gas bills in early 2022, higher utility costs that are being fueled by a brutal eruption of inflation.
Increases in monthly electric and gas bills are slated to jolt PG&E customers during early 2022, a utility price surge that’s being triggered by a brutal bout of inflation.
The estimates of the changes in average electric and gas rates are part of the “annual true-up,” the formal name of a PG&E filing with the PUC. “A large driver of the January 1, 2022 rate change is for grid safety, reliability and resilience investments and upgrades, including work to reduce wildfire risk,” Doherty said.
“Natural gas commodity prices for this winter are currently double the prices seen last winter,” Doherty said. “Since market electricity prices are driven by the cost of natural gas, a similar increase in the cost of electricity in California’s power markets is happening.”For now, however, PG&E bills are going to be rising over the course of the first bill cycles for residential customers in early 2022.
— Electricity bills for the average-use residential ratepayer are slated to total $152 a month, an increase of $12, or 8.6%, compared with the previous average bill of $140. Among the external factors that are driving increases in natural gas utility costs, according to PG&E: Gas production stalled in the wake of the outbreak of the coronavirus. In addition, liquefied natural gas exports to Europe and Asia have increased, which has further squeezed gas supplies and intensified price pressures.
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