Does PG&E Plan More Rate Hikes In 2025?

BAY AREA, CA—Most residential customers of Pacific Gas and Electic Co. who do not receive discounts will pay about 4 percent—or $11—less, for electricity this month than they did in January 2024, as long as their electric use stays about the same, the utility said Monday in a news release.

The electric decrease largely offsets gas increases that have occurred since January 2024, the utility said.

Under previous rate changes, the average gas bill went from $69.47 in January 2024 to $75.25 in September 2024, an 8.3 percent increase. The average electric bill went from $190.84 in October 2023 to $222.36 in January 2024.

This year, PG&E said customers who receive both electricity and gas service will see combined bills remaining about the same compared to last January, increasing by about $1 per month, based on average residential bills available in PG&E’s rate advisories.

Based on current information, PG&E said, electric rates are expected to be more stable this year than last year, with fewer and smaller changes during the year.

The utility's electric rates are projected to drop more in 2026, according to a recently published report by the California Public Advocates Office.

PG&E noted that all rates are temporary and can change during the year as some costs leave bills and others are added.

"This is because costs will end for some wildfire safety work and storm response and will no longer be included in customers’ bills," PG&E said. "Other pending rate increases, if approved by the California Public Utilities Commission (CPUC), could offset a portion of these decreases."

Jan. 1 Rate Changes

The January rate change, called an annual "true-up," consolidates rate changes approved by regulators and allows PG&E to return money to customers or charge customers to account for the difference between forecasted and actual costs of providing gas and electric service.

For typical residential customers who don’t receive discounts, electric rates will remain flat in January compared to rates in effect in December 2024. Residential customers who receive discounts will see their electric rates decrease by 5.5 percent as a result of Assembly Bill 205, which increased the average California Alternate Rates for Energy (CARE) discount from 35 percent to 38.5 percent.

For the typical non-CARE residential customer who uses 500 kilowatt hours (kWh) of electricity per month and receives energy supply and delivery from PG&E, monthly electric bills will decrease by about $1 per month, compared to rates in effect in December.

For the typical CARE residential customer, monthly bills will decrease by $8.50.

Average residential gas rates will go up by 8.6 percent in January to pay for new investments in safety and reliability. This work includes replacing, inspecting and strength-testing pipelines, and using advanced leak detection technology to quickly find and fix gas leaks to improve safety and reduce methane emissions.

Like electric, gas rates also include energy supply costs. The natural gas supply costs this winter are lower compared to last winter, PG&E said.

A typical residential customer using 31 therms who gets both energy supply and delivery from PG&E will see monthly gas bills increase by $9 per month, compared to December's rates. For customers receiving discounts, the monthly bill increase will be about $7.

PG&E 'Taking Action To Reduce Customer Costs'

The utility is taking many actions to slow future increases and stabilize bills through 2026, according to the news release. PG&E said it is reducing operating and capital costs such as materials and labor, and more efficiently planning, executing and automating work.

Customers could see lower electric bills in the next six to 12 months if the CPUC approves PG&E’s request to issue bonds to spread some vegetation management costs over a longer period. This could lower bills by $16 per month.

PG&E said it is also reducing financing costs. The company applied for grants and low-interest loans from the U.S. Department of Energy —DOE—which could save customers hundreds of millions of dollars in interest.

The DOE recently gave PG&E a conditional commitment for a $15 billion loan guarantee to pay for work to modernize the electric grid. PG&E estimates this would save customers up to $1 billion net present value over the life of the financing.

Programs That Help Lower Utility Bills

PG&E offered a list of programs where customers may qualify for bill assistance:

• California Alternate Rates for Energy (CARE), which provides a monthly discount of 20 percent or more on gas and electricity.
• Family Electric Rate Assistance (FERA), which provides a monthly discount of 18 percent on electricity for households of three or more people.
• Energy Savings Assistance (ESA), a program that provides energy-savings improvements at no charge.
• Relief for Energy Assistance through Community Help (REACH), to provide up to $300 in assistance per household for past-due bills. Program re-opens Jan. 2, 2025.
• 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.
• Arrearage Management Plan (AMP), a debt forgiveness plan for eligible residential customers.
• Other programs include Medical Baseline, which offers a lower monthly rate for customers with certain medical conditions.

"PG&E will keep customers informed about rate changes and other factors that affect the cost of energy service," the utility said. "PG&E looks forward to working with its regulators, customer advocates and other stakeholders to deliver customers service at the lowest possible cost."