Inflation topped out at 8.5 percent this year.

That, however, may seem inconsequential compared to what is coming down the pike in terms of your PG&E bill.

PG&E has a rate increase pending that will send up your home energy costs at least 17.9 percent a month sometime in 2023.

The rate hike includes increased costs for generating electricity or procuring natural gas.

The California Public Utilities Commission is scheduled to decide on the rate application during the second quarter of 2023.

PG&E, which has one of the highest rates in the country, will have the highest rates in the nation if the rate increase is granted.

The CPUC — based on a residential customer that uses 500 kilowatt hours will see their electricity costs go up $28.78 to $180.31 a month for a 19 percent increase. Gas customers using 33 thermal units will see a $9.95 per month hike to $75.12 a month for a 15.3 percent hike. The combined total would result in a $38.73 month hike for a 17.9 percent increase.

Based primarily on hotter summers, Manteca, Lathrop, and Ripon PG&E customers — as well as elsewhere in the Central Valley —  typically use more than 500 kilowatts of electricity monthly compared to other regions in the PG&E territory.

And with the push by the state for less natural gas to reduce  greenhouse gas, electrical use — and PG&E costs — will increase even more in the coming years.

It is one of the highest — if not the highest — rate hike ever sought by the for-profit company that several years came out of its second bankruptcy in 20 years and is on target by its own estimation to post record profits in the next few years.

For 2023, PG&E is requesting a reduction of revenue for anticipated operations and maintenance expenses and an increase of revenue for administration costs, new capital investments to replace and upgrade its facilities, and wildfire risk mitigation activities. PG&E is requesting the CPUC approve operating expenses, taxes, and capital via depreciation and return amount for its gas operations. PG&E is also seeking additional revenue to cover gas operations costs related to its gas distribution, gas transmission, and storage systems.  
The proposed rate hike does not include what some have described as a PG&E moonshot proposal to underground at least 10 percent of the utility’s 27,000 miles of above ground wires to reduce the company’s exposure to wildfire losses. Experts have indicated PG&E will need to jack up rates significantly for such work that is expected to cost billions and billions of dollars.

PG&E wants to underground upwards of 1,000 miles a year. That is a major leap from current efforts to bury 70 miles on an annual basis.

PG&E was forced into bankruptcy for a second time after the largest wildfire its equipment has been blamed for starting killed 85 people and destroyed more than 20,000 structures, most of which were homes of their customers, in and around Paradise.

PG&E pled guilty to 85 counts of manslaughter. The firm has 5 million customers with more than 16 million people depending upon their services.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com