Pacific Gas & Electric customers are already paying some of the nation’s highest rates for electricity, and their bills could be getting a little bigger.

PG&E is notifying customers that they’ll have to pay transaction fees starting May 19 if they use a bank account, credit card, or debit card to pay their bills.

The fee will be $1.50 for residential customers and $6.95 for business customers. It’s unclear why business customers would pay more than residential customers.

Customers who use a “commercial” credit card also will be charged a 1.95% surcharge on the payment amount, in addition to the fee. So, if the power bill totals $200, that’s an extra $5.40 for residential customers and $10.85 for business customers for the fee and surcharge.

It was unclear Friday whether the company had gotten the OK from the California Public Utilities Commission, or even needs to ask permission, to institute the new fees and surcharge.

New Fees Are ‘Shocking’

Mark Toney, executive director of The Utility Reform Network, an advocacy organization based in the Bay Area, was critical of the new fees.

“It is shocking to TURN that PG&E wants to charge a customer fee for paying through a checking account, because the transaction costs are so minimal, as compared to costly credit card transaction fees of 3-5%.” he said in an email Friday. “PG&E should know better than to try to sneak in a brand-new customer fee without first filing a (California Public Utilities) Commission request for a rate increase, so that TURN, business groups, and the public can weigh in.

PG&E customers, already facing an affordability crisis, shouldn’t have to pay an additional fee “just for paying their bills,” he said.

The California Public Utilities Commission press office did not respond immediately to an email seeking comment Friday.

PUC spokeswoman Terrie Prosper later responded with the following: “The residential fee in question was previously $1.35 and was increased to $1.50 via an Advice Letter request by PG&E to the CPUC.”

Why the Surcharge?

The PG&E website provides the following explanation regarding the credit card surcharge: “PG&E has partnered with an independent payment provider so you can pay with a credit or debit card on a one-time or recurring basis. The fees for these payments are set by credit card networks, payment processors, and banks, not by PG&E. California Assembly Bill 746 (AB746, enacted in 2005) restricts energy companies, including PG&E, from passing these costs to all customers. Instead, only those using this service are charged these fees. The last fee change occurred in 2017.”

According to the company website, customers who pay online directly from their checking or savings account can avoid the transaction fee, although that seems to conflict with another part of the website that says they will be charged a fee “for using a bank account.”

PG&E spokesman Jeff Smith later clarified that the company already has been charging a surcharge for credit card payments and also said that customers who pay online will be able to avoid fees. The higher fees are due to higher vendor costs, he said.

“Customers can avoid transaction fees by signing up for recurring payments or by logging into their PG&E account to use the One-Time payment option with their checking or savings account,” Smith said in an emailed statement. “Transaction fees will apply if customers pay with their bank account by phone or use the One-Time feature without logging into their PG&E account. The fees for these payments are set by credit card networks, payment processors, and banks, not by PG&E. … PG&E does not profit from transaction fees. Since 2006, PG&E has maintained one of the lowest transaction fees compared to other California and national utilities.”

Customers who pay with cash, money orders, or cashier’s checks apparently can avoid the fees and surcharge. Click here to use PG&E’s payment center locator.