With the new PG&E meters being installed, PG&E company is raising its' prices to make up profit for the money they lost in paying for the new meters. It's not a very high increase but it is still money.
The issue here is that PG&E is already making more money off the new meters and also raising the prices to make up for lost profit of replacing the analog meters. Last year, though, administrative law said that it would be okay if they did this but for less money than if the meters were actually being used.
The argument is that some feel that PG&E is making too much profit off these old meters, while others feels that it is okay.
A voted decision was made that PG&E will increase their rates about $13 million over the span of the next six years.
What is your opinion-do you think that PG&E should or shouldn't be able to increase their electricity charges due to the money spent on the new meters?
3 comments:
I don't trust "smart" meters... We should be able to purchase our energy from independent providers and companies like people do in Canada. PG&E's monopoly on the energy business is not right and should be put to an end!
From what I understand after reading a Wall Street Journal article (http://online.wsj.com/article/BT-CO-20110505-724575.html) regarding this issue, the repairs and installation of the new system could top $1 billion over the course of the next two years. In response to this, the California Public Utilities Commission has approved a decision that "allows PG&E to collect $38 million a year over six years, plus a $17.3 million return, to compensate the company for its investment in older, analog utility meters that the utility has replaced or plans to replace with advanced meters."
As long as PG&E maintains a monopoly on Californian energy, it is fair for the company to raise prices if the CPUC authorizes said raises. Nonetheless, I agree with Tim's sentiments and would also like to add that PG&E has a net income of over $1.3 billion per year. As such, it isn't necessary for the company to raise prices to account for a $1 billion costs over the course of two years.
While PG&E has every right to raise their prices, I personally feel that it is wrong for them to do so. They are already making money off of the new meters; is raising prices really necessary? PG@E shouldn't abuse its monopoly on the energy business. What greedy people...
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