PG&E Electric Bills Down From Last Year, Expected to Drop Again in 2026

PG&E is delivering on its commitment to stabilize electric prices. The typical residential electric bill is about $12 lower today than it was in January 2024 for a customer who uses 500 kilowatt hours (kWh) monthly and does not receive income-eligible discounts.  

Over that time, residential electric prices have dropped three times, which offset any increases.  

Additionally, electric rates for residential electric customers who receive both energy supply and delivery from PG&E are expected to go down again next year. 

The latest rate decrease in September 2025 reduced the typical residential electric bill by about 2.1%, or $5 per month. This assumes a typical customer usage of 500 kWh per month.  

Electric rates decreased because PG&E completed a number of projects to increase wildfire safety and respond to emergencies. These temporary costs have been removed from rates, helping to lower bills. 

PG&E’s efforts to stabilize electric rates are going against the national trend for forecasted electric prices. While PG&E residential electric rates went down in September 2025 and are expected to decrease again in 2026, the U.S. Energy Information Administration forecasts that national electric prices are expected to increase through 2026, outpacing forecasted inflation.  

PG&E is working hard to achieve additional savings through company-wide cost-cutting programs and accessing lower-cost financing. 

In the last three years, the company has saved approximately $2.5 billion in operating and capital costs by working more efficiently and using new technologies and improved processes, such as using drones to inspect equipment and bundling electric projects into a single scope of work. PG&E has used the savings to do more safety and reliability work for customers more quickly and to offset some costs of that work. 

General Rate Case application proposes smallest percentage increase in a decade 

In May, PG&E submitted its 2027-2030 General Rate Case (GRC) application that proposes energy system improvements to drive California's economic growth and increase climate change resilience.  

PG&E is required to make this multi-year cost proposal every four years. This proposal includes the company’s smallest GRC percentage increase in a decade.  

Based on what PG&E knows today, if the GRC proposal is approved in full, residential combined gas and electric bills in 2027 are expected to be flat compared to current bills. This factors in a decrease in 2026.  

Although the GRC proposal, in isolation, would increase residential combined bills by a maximum of 3.6% in the first year, 2027, total customer bills are expected to be flat. This is because other costs will come out of bills in 2026. 

The regulatory process allows for input from a variety of stakeholders and the public before the California Public Utilities Commission issues a final decision. Customer rates are not expected to change related to this proposal until sometime in 2027. 

California Climate Credit lowers October bills 

Residential electric customers are receiving a Climate Credit of $58.23 during the October billing cycle. Eligible small business customers are also receiving the Climate Credit. 

PG&E customers receive the California Climate Credit twice each 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 during the transition to a low-carbon future.