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> You make good points, but if I read that correctly California also limits how much they are allowed to charge customers All (most?) states do this, it's the

> You make good points, but if I read that correctly California also limits how much they are allowed to charge customers All (most?) states do this, it's the entire role of the public utilities commission to review tariffs proposals by utility companies to ensure they aren't price gouging. This is the tradeoff for having a state-granted monopoly over a region.

dahdum 8y ago
CPUC isn't there just to prevent price gouging. They've already decided a guaranteed return on equity / return on rate base. If the legislators decided tomorrow the lines must be buried, and the CPUC allowed the rate hike necessary to do so, PG&E would happily comply. > The PG&E and other investor owned utilities that are essentially granted monopoly status in California are guaranteed a negotiated fair rate of return on equity (ROE). PG&E's ROE rate was set at 10.4% and a return on rate base (ROR) was set at 8.06% by the CPUC in December 2012. https://en.wikipedia.org/wiki/Pacific_Gas_and_Electric_Company#Rates https://en.wikipedia.org/wiki/Pacific_Gas_and_Electric_Compa...