The baseline rate structure provides residential customers with a minimum quantity of electricity and gas at the lowest possible cost, and offer an incentive to conserve energy. A monthly baseline quantity or Tier 1 Allowance is indicated on each bill you receive, based on the number of billing days in your cycle. (You can find the number of billing days beginning on page 3 of your monthly energy statement.) Energy use below the baseline amount is billed at a lower rate than is energy use over the baseline. To determine your monthly baseline quantity, do the following:
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Roll your cursor over the region where you live to determine your baseline quantity amount.
Your Baseline Territory can be found on page 3 or 4 of your bill, in the right-hand column.
*Our current baseline quantities went into effect on January 1, 2015.
PG&E's service area is divided into "Baseline territories." Customers in each baseline territory are allocated a daily quantity of kilowatthours (kwh) of electric power and therms of natural gas that can be billed at a lower, "baseline" rate.
The Public Utilities (PU) Code establishes baseline quantities for average residential gas and electricity use within each baseline territory. The PU code specifically requires that baseline quanties fall between 50 and 60 percent of average use for basic-electric customers in both the summer and winter and for all-electric and gas customer in the summer. The PU code also requires that baseline quantities fall between 60 to 70 percent of average use for all-electric and gas customers in the winter. PG&E's baseline summer season is April 1 - October 31 for gas and May 1 - October 31 for electric. PG&E's winter baseline season is November 1 - March 31 for gas and November 1 - April 30 for electric. Daily baseline quantities are recalculated and submitted to the California Public Utilities Commission (CPUC) for approval approximately every three years, and may be phased-in on an annual basis if necessary to mitigate bill impacts.
Though baseline quantities vary by territory, season and customers' heating sources, the prices at each tier are the same for all residential customers on the same rate schedule - regardless of the size of individual homes and number of occupants. Some customers may be eligible for additional medical baseline quantity allowances if established criteria are met.
Until June 2001, both gas and electricity were billed on a two-tier rate structure. After the California energy crisis, electric usage has been billed on a multi-tier rate structure.
The two-tier rate structure remains in effect for gas usage.
Rates for Tier 1—the baseline tier—will continue to be billed at the baseline rate; rates in Tiers 2, 3 and 4 apply to electric use beyond set baseline quantities. Customers are billed at the baseline rate for electric use up to the baseline limit. Use beyond this level is charged at the "over baseline" rate, which is priced at a higher level. (Page 3 or 4 of your monthly energy statement illustrates this.)
|Tier 1||Up to the Baseline amount|
|Tier 2||Electricity usage from 101% to 130% of Baseline|
|Tier 3||Electricity usage from 131% to 200% of Baseline|
|Tier 4||Electricity usage above 200% of Baseline|
Gas usage remains at a two-tier structure. Rates for Tier 1—the baseline tier—will continue to be billed at the baseline rate; Tier 2 rates ("over baseline") apply to gas use beyond set baseline quantities. Customers are billed at the baseline rate for gas use up to the baseline limit. Use beyond this level is charged at the "over baseline" rate, which is priced at a higher level. (Page 3 of your monthly bill illustrates this.)
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