How Public Power is winning on rates—keeping the lights on while delivering savings
As San Francisco celebrates Public Power Week, it’s worth taking a moment to focus on one of the biggest issues facing customers today: growing frustration with skyrocketing PG&E rates.
According to a recent report from the Public Advocate’s Office at the California Public Utilities Commission, PG&E’s rates have gone up by more than 50% in the past three years and a whopping 127 percent in the last decade. This includes a significant increase starting earlier this year that added more than $400 annually to an average household bill compared to 2023.
While PG&E has made history again, this time as one of the most expensive power providers in the entire country, they aren’t an outlier. Rates are very much climbing for most customers served by investor-owned utilities in California. For example, customers of Southern California Edison and San Diego Gas and Electric have seen a 91% and 72% increase respectively over the last ten years.
Sources: Rates (Public Advocates Office analysis of utility data for the residential average rate excluding the California Climate Credit); Customers Behind on Bills or "Arrearages": (November 2023 utility compliance filings in the CPUC's disconnection proceeding)
The truth is, it doesn’t have to be this way. Public power is affordable power: community-owned, not-for-profit utilities like the San Francisco Public Utilities Commission (SFPUC) are showing customers a better way to provide clean, reliable power at much lower rates.
As a whole, public power utilities in the United States offer lower rates than other types of electric utilities. In fact, public power utilities have the lowest overall rate in 36 states. Homes powered by public power utilities in 2022 paid an average of 9% less than homes powered by private utilities.
Thanks to public power, customers in San Francisco are saving too. SFPUC customers saved more than $170 million in 2023 alone on electric bills compared to what they would have paid PG&E. Hetch Hetchy Power, San Francisco’s public power utility, continues to offer the lowest electricity rates in San Francisco today.
Public power is community power
There’s a reason for this: Public power providers don’t pay shareholder dividends, corporate taxes, or executive bonuses. We reinvest revenues back into the system and have access to lower-cost financing, reducing ratepayer costs.
With PG&E’s rates climbing out of control, the only way to ensure more affordable rates for all San Franciscans is through full public power. Through public ownership of the grid, the City would provide clean, safe, reliable, and affordable power to San Franciscans today and for generations to come.
But in order to put a stop to PG&E's price gouging and expand public power, we need your help. Add your name today to our growing list of community supporters who are saying it’s time for full public power now! Learn more: publicpowersf.org/takeaction.
