Broader Benefits: PG&E Increases Energy Bill Assistance and Expands REACH Program to Help More Customers

Rhea-AI Summary

PG&E has expanded its REACH program to provide greater financial assistance to customers with past-due energy bills. Key changes include:

1. Increasing the maximum bill credit from $1,000 to $2,000
2. Raising income limits to qualify more customers
3. Removing the $2,000 cap on past-due balances
4. Allowing customers on payment plans to participate

PG&E expects these changes to benefit approximately 65,000 more customers. Since January, the company has provided over $17.2 million in assistance to more than 25,000 income-eligible customers through REACH and REACH Triple Match. Additionally, PG&E contributed $55 million to the nonprofit Dollar Energy Fund to further support the REACH program.

Positive

• Increased maximum bill credit from $1,000 to $2,000 for REACH and REACH Triple Match programs
• Expanded income eligibility limits to include more customers
• Removed $2,000 cap on past-due balances, allowing more customers to qualify
• Provided $17.2 million in financial assistance to over 25,000 customers since January
• Contributed $55 million to Dollar Energy Fund to support REACH program expansion

Negative

• None.

Insights

Financial Analyst

PG&E's expansion of the REACH program is a strategic move that could have positive implications for the company's financial health and investor sentiment. By doubling the maximum bill credit to $2,000 and increasing income limits, PG&E is casting a wider net to address the issue of unpaid bills, which has likely been a growing concern.

The company's $55 million contribution to the Dollar Energy Fund, funded without impacting customer rates, demonstrates a proactive approach to managing bad debt. This investment could potentially yield significant returns by reducing the volume of unpaid bills and mitigating the risk of service disconnections, which are costly for the utility.

From January to July, PG&E has already provided over $17.2 million in financial assistance to more than 25,000 customers. With the expanded eligibility, an additional 65,000 customers could qualify for assistance. This broader reach could translate to improved cash flow and reduced write-offs for bad debt, positively impacting the company's bottom line.

However, investors should closely monitor the program's effectiveness in reducing overall past-due balances and its impact on PG&E's financial statements in the coming quarters. If successful, this initiative could serve as a model for other utilities facing similar challenges with unpaid bills, potentially positioning PG&E as an industry leader in customer assistance programs.

Market Research Analyst

PG&E's expansion of the REACH program is a savvy move that addresses multiple market dynamics. First, it responds to the growing concern over energy affordability, particularly in regions like Fresno County where poverty rates are high. By increasing the income threshold to $156,000 for a family of four, PG&E is acknowledging the financial strain on middle-income households as well.

This initiative could significantly enhance PG&E's brand image and customer relationships. The company is positioning itself as a supportive partner during challenging economic times, which could lead to improved customer loyalty and potentially reduced opposition to future rate increases.

Moreover, the program's expansion aligns with broader social and political trends emphasizing corporate social responsibility and support for vulnerable communities. This could positively influence regulatory relationships, potentially easing future negotiations on rates and infrastructure investments.

The program's success in Fresno County, with over 3,500 approved applications and $2 million in assistance, suggests strong demand for such services. If this trend continues across PG&E's service area, it could lead to significant improvements in customer satisfaction metrics, a key performance indicator for utilities.

Investors should watch for potential ripple effects in the utility sector. If PG&E's expanded program proves successful, it could set a new standard for customer assistance in the industry, potentially influencing regulatory expectations for other utilities nationwide.

More Qualifying Customers Can Receive Up to a $2,000 Bill Credit Under New Guidelines

OAKLAND, Calif., July 24, 2024 /PRNewswire/ -- To provide additional financial assistance to more households with past-due energy bills, Pacific Gas and Electric Company (PG&E) is modifying guidelines mid-year for the Relief for Energy Assistance through Community Help (REACH) program. REACH and REACH Triple Match help qualifying low- to moderate-income customers pay their past-due energy bill and help prevent service disconnections.

"We want to ensure more customers have the support they need to get their energy bills back on track," said Vincent Davis, PG&E Senior Vice President, Customer Experience. "With a more robust bill credit and broader income eligibility, we can provide greater financial relief to the households that need it most."

"I understand the hardship currently affecting so many residents who are struggling to pay their bills," Fresno Mayor Jerry Dyer said. "I support any amount of savings that can be passed on to residents who are financially strained and have fallen behind on their PG&E bills.  I am hopeful the REACH program can provide some much-needed bill relief to those residents, and policymakers will take actions toward stabilizing energy bills."

Based on recent customer data, PG&E anticipates approximately 65,000 more customers can qualify for REACH and REACH Triple Match assistance under the new guidelines. Since January, more than 3,500 applications have been approved in Fresno County, resulting in more than $2 million dollars in financial assistance, marking the highest amount in PG&E's service territory.

"Many Fresno residents are already struggling with overdue energy bills and cannot make timely payments. The REACH program offers crucial relief, ensuring that families in some of the highest poverty areas in the nation can stay cool and safe without sacrificing their basic needs," said Fresno City Council President Annalisa Perea.

PG&E has provided more than $17.2 million in financial assistance to more than 25,000 income-eligible customers through REACH and REACH Triple Match since January.

Expanded Benefits & How to Apply

• Bill Credit Doubled: The maximum customer bill credit that can be applied to a past-due balance has increased from $1,000 to $2,000 for REACH and REACH Triple Match (total not higher than customer's past due amount).
• Increased Income Limit: A larger pool of income-eligible customers now qualifies for REACH Triple Match, which provides a 3-to-1 match on customer payments of $50 or more to further reduce an unpaid balance. For example, a family of four making up to $156,000/year could qualify for assistance.
  • Income limits for REACH and REACH Triple Match are set at different thresholds and both use federal income guidelines.
• Past-due Balance Amount: Qualifying customers can now participate in the program regardless of their past due balance, which was previously capped at $2,000, and customers on a payment plan are also now eligible.
• Additional Benefits Available for 2024 Recipients: Qualifying customers who already participated in REACH or REACH Triple Match will be offered the opportunity to participate a second time under the new guidelines, with up to a $2,000 total benefit available for 2024.

The revised criteria are aimed at helping more customers address high past-due amounts, especially over the hot summer months when energy usage typically peaks. Information on how to apply is online here.

Dollar Energy Fund
PG&E recently contributed $55 million to support the nonprofit Dollar Energy Fund (DEF), marking an expansion of the REACH program. This contribution is funded through PG&E and not customer rates. DEF operates separately from PG&E.

DEF, a nonprofit entity, administers the funding for the REACH program, operating 170 offices across Northern and Central California. PG&E customers, including those in need of in-language support or help with their applications, can contact an agency in their county or apply online at www.hardshiptools.org/MyApp. Applicants can also call 1-800-933-9677 for assistance.

Other Income-Eligible Assistance Programs
PG&E has other assistance programs to help income-eligible customers pay their energy bills:

• California Alternate Rates for Energy: provides a monthly discount of 20% or more on gas and electricity bills. New federal income eligibility guidelines apply.
• Family Electric Rate Assistance (FERA): provides a monthly discount of 18% on electricity for households of three or more people. New federal income eligibility guidelines apply.
• Energy Savings Assistance (ESA): provides energy-savings improvements at no charge. New federal income eligibility guidelines apply.
• Low Income Energy Assistance Program (LIHEAP): a federally funded assistance program overseen by the state that offers a one-time payment up to $1,000 on past due bills to help low-income households pay for heating or cooling in their homes. 

Other programs include Medical Baseline, which offers a lower monthly rate for customers with certain medical conditions.

About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news  

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/broader-benefits-pge-increases-energy-bill-assistance-and-expands-reach-program-to-help-more-customers-302205519.html

SOURCE Pacific Gas and Electric Company

FAQ

What changes has PG&E made to its REACH program in 2024?

PG&E has increased the maximum bill credit from $1,000 to $2,000, raised income limits for eligibility, removed the $2,000 cap on past-due balances, and allowed customers on payment plans to participate in the REACH program.

How many additional customers are expected to benefit from PG&E's expanded REACH program?

PG&E anticipates approximately 65,000 more customers can qualify for REACH and REACH Triple Match assistance under the new guidelines.

How much financial assistance has PG&E provided through REACH since January 2024?

Since January 2024, PG&E has provided more than $17.2 million in financial assistance to over 25,000 income-eligible customers through REACH and REACH Triple Match programs.

What is the income limit for PG&E's REACH Triple Match program in 2024?

For REACH Triple Match, a family of four making up to $156,000 per year could now qualify for assistance under the expanded income limits.

How much has PG&E contributed to the Dollar Energy Fund to support the REACH program?

PG&E has contributed $55 million to the nonprofit Dollar Energy Fund to support the expansion of the REACH program.