Harder Demands CA Reverse Decision Allowing PG&E to Pass Fire Costs on to Taxpayers

WASHINGTON – Today, Representative Josh Harder sent a letter to California's Director of Energy Infrastructure Safety Caroline Thomas Jacobs urging her to reverse her recent decision allowing PG&E leadership to pass the costs of the catastrophic wildfires PG&E on to California taxpayers while also capping the amount of fire damage that PG&E shareholders are responsible for paying back to the same fund.

"I wish I was shocked to see leaders in Sacramento putting PG&E interests ahead of Central Valley families," said Rep. Harder. "Nobody in the Central Valley can afford to pay $200 a month to heat their home plain and simple, and the $300 bills we're seeing are just absurd. So today I'm calling on our state to reverse this catastrophic decision and do their part to bring PG&E bills back down to Earth. Our families deserve a break, not another bill. And let me be clear, PG&E executives, not their hard working employees, caused this mess and it's the executives who need to clean it up."

This year, Central Valley families are facing unprecedented increases in their monthly utility bills. The Mercury Newsreported that January 2022 was the first time PG&E customers paid an average of more than $200 per month. They also warned that "prospects loom for a "30% increase" in connection with PG&E's general rate case" in the next year. KCRA recently reported some families across the Central Valley have received monthly PG&E bills of $300 or more, often triple what they paid in October and November.

Read the letter below and online here.

Dear Director Thomas Jacobs,

I write today to raise my opposition to the board's decision allowing Pacific Gas & Electric (PG&E) to raise electric costs and urge the board to reconsider this decision.

The approval of PG&E's safety certificate allows the utility to put California families on the hook for covering catastrophic wildfire costs. Specifically, it allows PG&E to tap into a multibillion-dollar state wildfire fund, partly funded by California customers. Not only does this decision permit Californians to foot the bill for wildfire costs, it also caps the amount of fire damage that PG&E shareholders are responsible for paying back to the same fund. This decision is unbelievable and reckless.

I understand the need for the board to approve a safety certificate charting a pathway for the utility to make much-needed improvements in its operations. In fact, I support that effort. I also support the work being done each day by PG&E's workers out in the field to make our energy grid safer and more reliable. This is not about any of that. It's about the implications of this safety certificate, which are alarming and set a dangerous precedent of holding ratepayers accountable for wildfire costs rather than the utility and its shareholders. Over the last two decades, PG&E has paid well over $2.3 billion in penalties and lawsuit settlements. If this certificate had been in place decades ago, only a fraction of that would have been recovered by wildfire victims and PG&E customers. This is an insult to Californians, especially those who have lost a loved one due to the utility's negligence.

Your decision will also impact countless Central Valley families, including low-income households, who will see their utility bills go up by double digits. These families are being forced to choose between freezing in the winter months or barely affording their electric bills. It is inconceivable to imagine the board would make this decision at a time when our state is grappling with soaring inflation prices, driving up the costs of food and energy.

California families have suffered greatly from wildfires – losing their loved ones, their homes, and facing life-threatening climates. The costs of these wildfires have been great. Californians should not have to bear the brunt of anymore wildfire costs. As the board tasked with advancing wildfire safety, I urge you to put the lives and needs of Californians before that of a utility company. I look forward to your timely response to this critical matter.

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