Making it in the Bay is becoming even more expensive in the new year.
PG&E has hiked its rates, and now the state's largest home insurer is about to do the same.
State Farm, which insures about one in every 10 to 11 homes in the Bay Area and the rest of California, has been approved by the state's Department of Insurance to raise rates on average by 20% per homeowner.
In a statement, the company said, in part, "These rate changes are driven by increased costs and risk and are necessary for State Farm Mutual Automobile Insurance Company and State Farm General Insurance Company to deliver on the promises the Companies make every day to their customers. We continue to look for ways to maintain competitive rates and help our customers manage their risk."
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The new rates go into effect March 15.
Last year, State Farm stopped writing new policies in the state in part due to the risks of wildfires.
PG&E’s latest rate hike kicks in this week, which means customers are paying more for power than anyone else in California. There could also be another rate hike later this year.
The NBC Bay Area Investigative Unit reviewed documents which show PG&E overspent on cutting trees near power lines and other efforts to reduce the chances of sparking wildfires.
Between 2020 and 2022, the utility spent $9.3 billion more than regulators authorized.
Ratepayer advocacy group TURN said PG&E could request customers to reimburse them.
The rate increase already approved will raise an average PG&E bill by $33. PG&E is also separately asking for another increase in March. If that's approved, the average bill could go up again by $14.
PG&E could also ask for another hike of around $43 a month. That brings the total to $100 more for the average monthly bill.
"The California Public Utilities Commission is in charge of reviewing every application for a rate increase, and unfortunately they have repeatedly taken the side of Wall Street investors over the side of everyday customers," TURN Executive Director Mark Toney said. "That's why the bills have skyrocketed so much these past few years."
In a statement, PG&E said, "Every day, PG&E is making the electric system safer and stronger for our customers in response to evolving climate challenges." That work, "includes important safety work directed by our regulators," including repeated inspections of some parts of its system each year.
