PG&E Currents
| 9.4.24

What to Expect: PG&E Updates Customers on Fall Bills

Update: Sept. 12

Beginning Oct. 1, PG&E residential electric rates will increase. The California Public Utilities Commission (CPUC) approved the rate change on Sept. 12 to recover costs from wildfire safety work and response to the historic storms of winter 2022-2023.

PG&E restored power to more than 7 million customers during a record 15 major storms that winter-- mobilizing over 7,200 personnel to replace or repair more than 4,500 poles and 850 miles of wire.

A typical residential customer who uses 500 kWh per month, receives both energy supply and delivery from PG&E, and does not receive income-qualified discounts, can expect to see their monthly electric bills increase about $6. For a typical residential customer who receives the CARE discount and uses 500 kWh a month, the bill increase is about $4. These changes result from a 2.9% rate change. Actual impacts of rate increases vary depending on usage.

The rate change follows a 9% residential electric decrease in July and a 0.5% increase in September, resulting in a net decrease for customers, compared to June 2024 rates. Residential electric customers also will receive a $55 California Climate Credit in their October bills. The California Climate Credit is part of the state’s efforts to fight climate change and is distributed by PG&E to customers as directed by the CPUC.

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Today (Sept. 4), PG&E is updating customers on what they can expect in their energy bills this fall and winter. 

Beginning Sept. 1, PG&E residential natural gas rates will increase. A typical residential customer who uses 31 therms of gas per month, receives both energy supply and delivery from PG&E, and does not receive income-qualified discounts, can expect to see their monthly gas bills increase about $5.78. For a typical residential customer who receives the California Alternate Rates for Energy (CARE) discount and uses 26 therms a month, the bill increase is about $3.87. Actual impacts will vary depending on usage. These changes result from an increase in PG&E residential gas rates of about 7.5%.

The gas rate change adopts new gas sales forecasts to calculate rates. The rate change ensures that previously-approved revenues are collected to cover the cost of safely and reliably operating and maintaining the natural gas system. The California Public Utilities Commission (CPUC) approved PG&E’s request in March.

Gas rates pay for programs including:

  • Annual safety tests and inspections including in-line inspections with state-of-the-art tools that run inside the pipeline and hydrostatic strength tests
  • Modernizing and replacing main and transmission pipelines
  • Using advanced leak detection technology to quickly find and fix leaks to improve safety and reduce methane emissions

PG&E has a 99% reliability rating for its 4.5 million natural gas customers. Among its many projects supporting safe and reliable natural gas delivery, PG&E is working with Monterey County to relocate and modernize over 5,300 feet of transmission pipeline to support the community’s capital improvement plan and is conducting a pipeline safety test in Petaluma using pressurized water to confirm pipeline operating pressure.

Residential electric rates are increasing by 0.5%, effective Sept. 1, as a result of recovery bonds issued to help pay for CPUC-authorized wildfire risk reduction projects at a lower cost to customers than traditional financing. 

“We are building a resilient, sustainable energy system to meet our customers’ energy needs now and in the future. As we do this work, we understand our customers’ concern over higher energy bills, and we are taking a variety of actions to stabilize bills without sacrificing safety,” said Vincent Davis, PG&E Senior Vice President, Customer Experience. “We are committed to keeping customers informed about changes to energy rates and bills so they aren’t surprised, can plan for changes, and can benefit from our many resources, tools and financial assistance programs.”

Working to Stabilize Bills

PG&E is working to limit combined gas and electric bill increases to no more than an average of 3% per year through 2026. PG&E has adopted company-wide savings initiatives to reduce operating costs and limit unnecessary expenses. Last year, PG&E reduced operating costs by $510 million and is working to reduce costs by up to $1 billion this year.

The company is managing more than 200 initiatives to reduce materials, labor and other costs, and is more efficiently planning, executing and automating work to deliver results and future savings for customers. Examples of cost-cutting measures this year include:

  • Identifying, planning and executing electric safety and reliability work more efficiently, saving $300 million.
  • Bundling electric powerline projects, saving $20 million. Instead of doing individual jobs separately on a section of powerline, PG&E groups them into a single scope of work to reduce necessary resources and customer inconvenience.
  • Reducing new-service project cancellations, saving $14 million. Streamlining the application process to more quickly evaluate projects saves money and improves the customer experience.

PG&E is also looking for other ways to save money for customers. For example, the company collaborated with customer advocates on an alternative to commercial insurance, saving customers up to $1.8 billion over four years.

Here to Help Customers

PG&E offers a variety of resources to help customers manage energy use and bills including:

  • Personalized Rate Comparison supports customers by providing the best rate plan options for their household, which can help save money on energy bills.
  • Budget Billing averages out energy costs for more predictable monthly payments and helps customers avoid seasonal bill peaks.
  • Bill Forecast Alerts are notifications sent by email, text or phone notifying the customer if their monthly bill is expected to exceed a specific amount set by the customer, based on how they are using energy.
  • Home Energy Checkup helps customers assess their energy use and gives customized savings tips.
  • HomeIntel is a free energy saving program that includes a Smart Audit and a personal energy coach. Customers who have lived in their home for more than a year and have a smart meter installed are eligible to participate.
  • Medical Baseline is an assistance program for residential customers who depend on power for certain medical needs. It offers cost reduction on energy bills and extra notifications before a planned safety outage.

Customers may also qualify for income-eligible programs that can help lower their bills. These include: