Frustrations over rising utility bills boiled over at a California Public Utilities Commission meeting Thursday, where consumer advocates urged regulators to reject PG&E's latest spending requests amid growing concerns about who will ultimately pay for California's wildfire costs.

Advocates and utility customers packed the CPUC meeting in San Francisco, arguing that Californians are already struggling with some of the highest energy bills in the country.

"Utility rates are financially crushing our communities," one speaker told commissioners during public comment.

The comments came as the CPUC considered several utility-related proposals, including a request that would allow PG&E to increase its authorized short-term borrowing capacity.

According to the commission agenda, PG&E is seeking authority to increase its financing limit from $8.5 billion to as much as $9.5 billion.

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Consumer groups urged regulators to closely examine utility spending before approving additional financing.

"PG&E has not justified the level of spending it is requesting," said Melissa Holmes, a Fremont PG&E customer who addressed commissioners.

The debate comes as state leaders grapple with another challenge: how California should manage the soaring costs of catastrophic wildfires.

Gov. Gavin Newsom is pushing lawmakers to revisit aspects of the state's wildfire liability system as utility companies, insurers and wildfire survivors debate who should bear the financial burden of future disasters.

At an unrelated news conference last week, Newsom defended the effort while emphasizing that utilities should share responsibility when their equipment causes devastating fires.

MORE: CA lawmakers considering bill that could slash PG&E rates by 30%, pay out wildfire victims

"The status quo doesn't work," Newsom said. "I'm done with CEOs of utilities getting bonuses when they're found liable and culpable for major fires... shareholders need to have a stake in all of this, have some skin in the game. Not just consumers."

The governor said he's trying to "balance all of those needs" as the Legislature works to find a deal in the final weeks of the session.

But utility reform advocates fear future changes could further protect investor-owned utilities from financial liability while leaving customers exposed to higher costs.

"They need to take accountability for their own damage that they cause," said Melvin Willis with the Alliance of Californians for Community Empowerment. "And community has a right to be at the table."

The CPUC also voted Thursday to penalize PG&E $22 million over the 2022 Mosquito Fire in Placer County, with the commission saying the utility violated state safety regulations.

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According to the CPUC, the settlement requires PG&E to pay $21 million to the state's General Fund using shareholder funds and spend another $1 million on an independent review of inspection practices.

Investor-owned utilities, including PG&E, reported higher profits in 2025, while energy bills have risen sharply in recent years.

A study from the Haas Energy Institute at UC Berkeley found residential electricity bills in California increased 39% over the last six years.

Utilities argue California's current system is increasingly strained by the growing cost of wildfires and the investments needed to maintain and modernize the electric grid.

Consumer advocates, meanwhile, say any solution must prioritize affordability for customers already struggling to keep up with their monthly bills.

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