PG&E proposes $7.4B in new investments to cover 2023-2026 energy development projects

The Pacific Gas and Electric Company (PG&E) this week filed its 2023 General Rate Case, proposing $7.4 billion in new investments for grid safety, resiliency, new technology, and innovations, as well as gas and electric system infrastructure improvements throughout California.

“We are committed to improving the critical energy infrastructure that serves each of our 16 million customers while also ensuring that energy remains as affordable as possible,” Robert Kenney, PG&E vice president of Regulatory and External Affairs, said. “We know this is a significant request that comes at a pivotal time when many of our customers are struggling to recover from the pandemic. While we believe these investments are critical to meet the evolving energy needs of our communities and customers, we won’t stop looking for additional ways to manage costs and help customers use less energy and lower their bills.”

The proposals were filed with the California Public Utilities Commission (CPUC), and according to PG&E, will help further reduce wildfire risks while improving service reliability overall.

Specifically, the company is pushing for technology to detect downed wires, microgrids, electric vehicle infrastructure, and clean battery energy storage. For safety, it also wants to harden more power lines and move others underground; test and use new tools to better prevent and respond to wildfire risks; exceed mandated vegetation management standards; reply LiDAR technology and remote sensing data in high fire-risk areas; tap technology to more quickly detect downed power lines; and improve cooperation for community microgrid projects.

PG&E also wants to make a series of critical energy investments. In terms of reliability, this would mean the replacement of 245 miles of pipeline by 2026 and 174 miles of gas transmission pipes, greater inspection capabilities and technologies, new safety measures, and an emphasis on reducing the rate of third-party digs around underground electric and gas facilities. The replacement of wooden transmission poles would be increased, and new distribution protection device zones would be added. Transformers in high-rise buildings would also begin to be swapped for dry type units to decrease fire risk.

All of this will go hand in hand with a push for cleaner energy. PG&E intends to invest in support to meet at-home electric vehicle demand, expand electric vehicle charging infrastructure and bolster its own fleet by more than 1,000 electric vehicles by 2026. Further, a new 183 MW battery storage system will be placed in Monterey County, and efforts will be taken to increase the amount of hydroelectric power PG&E can provide customers from the Helms Pumped Storage Facility.

“Our most important responsibility is the safety of the customers and communities we serve,” Kenney said. “These investments will strengthen our electric system against wildfire and other environmental risks and enhance gas and electric system safety while reinforcing our commitment to provide even more clean, renewable energy for California.”

To accommodate the efforts, the average residential customer could see bill increases of about 5 percent annually between 2021 and 2026, according to PG&E estimates. No resulting rate change would take effect until 2023, when the average monthly bill for a typical residential non-California Alternate Rates for Energy (CARE) electric and gas customer is expected to increase by about $1/day 80 cents/day for CARE customers.