The elevated cost of electricity and gas services provided by Pacific Gas and Electric Company (PG&E) is a persistent concern for its customers. This stems from a complex interplay of factors that contribute to the overall pricing structure. These factors encompass infrastructure investments, regulatory compliance, wildfire mitigation efforts, and the cost of procuring energy resources.
Maintaining and upgrading PG&E’s vast network of power lines and gas pipelines requires substantial capital expenditures. This infrastructure is critical for reliable service delivery across a large geographical area. Furthermore, the company operates under strict regulatory oversight, which includes mandates for renewable energy adoption and grid modernization. Complying with these regulations adds to operational expenses. The historical context reveals that past incidents, particularly those related to wildfires, have significantly influenced the company’s financial obligations and risk profile, impacting rates.