PG&E Reduces Electricity Rates as Prices Expected to Rise Nationwide Over the Next Year
Oakland, California — Electricity rates for Pacific Gas and Electric Company (PG&E) residential customers fell 2.1% on September 1. Monthly bills for the typical residential customer who uses 500 kilowatt-hours per month and does not receive discounts will drop approximately $5.
Electricity rates fell because PG&E has undertaken several projects to increase wildfire safety and emergency response. These temporary costs have been removed from rates, helping to lower bills.
In addition to the reduction in electricity rates, residential electricity customers will also receive a $58.23 California Climate Credit credit on their October bill.
PG&E is working hard to stabilize electricity prices through company-wide savings programs and to lower financing costs. Residential electricity rates have dropped three times in the past 15 months, offsetting increases over that period, and rates are expected to drop again in 2026.
“As we continue to make progress in stabilizing electricity prices for our customers, we know there is still much work to be done,” said Carla Peterman, PG&E’s executive vice president of corporate affairs and chief sustainability officer. “We are focused on making our system safer and more reliable for customers every day, while managing costs to keep bills as low as possible.”
Over the past three years, PG&E has saved approximately $2.5 billion in operating and capital costs through more efficient work and the use of new technologies and improved processes, such as using drones to inspect equipment and grouping electricity projects into a single scope of work. PG&E has used the savings to complete more safety and reliability work for customers more quickly and to offset some of the costs of that work.
PG&E’s efforts to stabilize electricity rates go against the national trend for projected electricity prices. While PG&E’s residential electricity rates fell in September and are expected to fall again in 2026, the U.S. Energy Information Administration anticipates that national electricity prices are expected to rise by as much as 12 months, exceeding projected inflation.
California Climate Credit
Residential electricity customers will receive a $58.23 Climate Credit on their October bills. Eligible small commercial customers will also receive the Climate Credit.
PG&E customers receive the California Climate Credit twice a year, in the spring and fall.
The California Climate Credit is part of the state’s efforts to combat climate change and is distributed by PG&E to help utility customers transition to a low-carbon future.
September Gas Rate Drop
The September rate change also includes a 0.4% gas rate drop, saving approximately $0.39 per month on the typical residential customer’s bill (31 therms/month).
Other Ways to Save
PG&E offers low-cost or free tools to help customers save energy and money. • Budget billing averages your energy costs over the past 12 months to determine your monthly payment and avoid seasonal spikes and bill surprises.
• Home Energy Checkup is a free online tool that helps customers assess their energy usage and offers personalized savings tips.
• HomeIntel is a free energy savings program that includes a Smart Audit and a personal energy advisor. Customers who have lived in their home for more than a year and have a smart meter installed are eligible to participate.
• Savings Finder is a free online tool that provides personalized recommendations for financial assistance, bill management programs, and other resources to ease monthly energy costs.
Financial assistance programs are available for qualifying customers, including:
• California Alternate Rates for Energy (CARE) Program: Offers a 20% monthly discount on gas bills and an average of about 35% on electric bills (compared to customers not in the CARE program).
• Family Electric Rate Assistance (FERA) Program: New guidelines offer an 18% monthly discount on electricity, regardless of the number of people in the household.
• Energy Savings Assistance (ESA) Program: Offers certain energy-saving upgrades free of charge.
• PG&E Relief for Energy Assistance through Community Help (REACH): A program that provides a bill credit of up to $300 to help income-eligible customers with past-due balances avoid service disconnections.
• PG&E Match My Payment: Offers the same match amount, up to a maximum of $1,000, to help qualified low- to moderate-income customers pay their past-due energy bills and avoid service disconnection. Customers must make a payment of at least $50 of their past-due bill each time to receive the match.
• Low-Income Home Energy Assistance Program (LIHEAP): A federally funded, state-supervised assistance program that offers a one-time payment of up to $1,500 on past-due bills to help low-income households pay for heating or cooling their homes.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.
