- During an interview with journalist Tom Vacar, the CEO of PG&E addressed queries about increasing utility expenses, recent wildfires, and possibly the ads you may have noticed lately.
- Five years ago, PG&E faced a crisis involving finances, legal issues, and loss of consumer trust. This is when Patti Poppe stepped in.
- She mentions that the company has reached a pivotal moment.
SAN FRANCISCO - With PG&E's latest rate increase Now under the jurisdiction of the California Public Utilities Commission, we aimed to pose to PG&E's CEO the queries frequently raised by KTVU viewers.
"A turnaround story is unfolding with PG&E," stated CEO Patti Poppe, who hails from a modest town in Michigan. She is the offspring of a school principal and an engineer.
Poppe is a self-made leader with a business degree from Stanford, becoming the inaugural female CEO of two different companies listed among the Fortune 500. Over her career spanning three decades, she has spent the past 20 years as an executive in the utilities sector following her tenure at General Motors, where she worked for 15 years.
Five years back, PG&E found itself ensnared in a perfect storm of financial troubles, legal issues, and eroded consumer trust. In response, the Board of Directors decided, “Let’s bring someone onboard to sort this out.” This individual turned out to be Poppe. Having served as CEO for half a decade, she recently faced some probing inquiries from us.
Rising PG&E bills
Primarily, many customers believe that PG&E's charges are excessively steep and see no indication of this changing soon.
"In a customer’s invoice today, $1 per month goes toward undergrounding $.20 per month will be allocated for vegetation management. Rather than continuing to address issues temporarily by choosing which trees might fail next, we should focus on developing infrastructure that can withstand the increasingly severe climatic conditions we face," stated Poppe.
On last Friday, she assured that the funds are already being utilized for fire prevention efforts, and stated that billing rates would remain constant at least until 2027.
"In 2025, bills remain unchanged from 2024 levels. We can maintain these stable bill amounts as we invest in essential infrastructure to ensure public safety," Poppe stated.
Wildfires attributed to PG&E The equipment had a catastrophic effect, leading to soaring or even unattainable insurance premiums. This resulted in steep declines within the home construction, house selling, and mortgage sectors.
Wildfire devastation
What actions is PG&E taking regarding that issue?
The top priority for PG&E should be making our system safer and decreasing the risk for our customers," stated the CEO. "I am confident that the insurance will eventually recognize this effort.
Are PG&E's latest advertisements staged or genuine?
We inquired whether PG&E’s recent ads, featuring worried clients posing queries to PG&E staff members, were scripted, staged, or crafted to deliver messages that would resonate with the audience?
These advertisements were unscripted. Both the customer and my colleague were spontaneous," Poppe stated. "Additionally, we aim for our customers to understand that we pay attention to them. We want them to realize that their input is heard and valued as it helps improve us.
PG&E's elevated rates have led to significant success for solar and home battery businesses. In response, PG&E has decreased the compensation offered to new solar customers, resulting in lower earnings from surplus power compared to those who were early adopters.
"We aim to ensure that we set the correct prices for the energy generated, be it from rooftops, hydropower stations, or nuclear facilities; we want to make certain that we are compensating appropriately for this electricity," she stated.
Early buyers, who invested extra money in their setups initially, receive higher rewards as well.
"Their motivation remains intact," stated Poppe.
Over the last five years, Poppe's average yearly earnings have been around $20 million, as sanctioned by PG&E's Board of Directors.
We questioned how the CEO can empathize with customers who are becoming more concerned about affording their bills, especially since PG&E is reporting huge profits.
“PG&E is improving thanks to the dedication and effort of my colleagues,” Poppe stated. “We’re changing our approach to work and sharing those cost savings with our customers,” she added.
READ : A California proposal might significantly reduce incentives for rooftop solar panels.
‘Turning point’
Poppe also stated that she doesn't support transforming PG&E into a publicly owned utility.
" Ninety-seven percent of those profit dollars are reinvested into the company. Our business strategy is aimed at serving both our investors and our customers," she stated.
CEO Poppe is fully aware that the bills need stabilization for her to have the chance of completing the recovery from the mess she took over, as she stated.
I trust that future generations will view this moment as a critical juncture for PG&E, where strong leadership truly made an impact.
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