PG&E Forecasts Rates To Remain Stable Through 2025

PG&E wants its customers to know how and why its energy rates change.

Beginning on March 1, residential electric rates will increase by 1.5% compared to rates currently in effect.

However, even with this small increase, PG&E electric rates will still be lower than they were last year.

Electric rates and typical residential bills for customers who do not receive discounts will be 3% lower, or $7 less per month, than they were a year ago.

Rates and bills will be lower in part as the company finishes collecting approved costs for some wildfire prevention work and removes those costs from rates.

As for the rest of 2025, based on current information, electric rates are expected to decrease slightly in the fall as additional wildfire costs come out of rates.

Additionally, rates could drop another 8%, for a period of 12 months, if the California Public Utilities Commission approves PG&E’s request to spread some vegetation management costs over a longer period of time.

Natural gas rates will not change March 1, and gas delivery rates are expected to be flat for the rest of the year. Natural gas supply costs are market-based and change monthly.

PG&E continues to focus on smaller and fewer rate changes for customers.

While it’s too early to forecast full year rate impacts for 2026, $1.15 billion for safety and reliability work approved in the company’s 2023 General Rate Case will come out of rates next January, which would offset other potential changes.

Reducing costs, stabilizing bills

PG&E continues to look for ways to reduce costs.

In the last two years, the company has saved more than $1.5 billion in operating and capital costs by reducing materials, labor and other costs. It is also more efficiently planning, executing and automating work for customers.

For example, the company saved more than $200 million last year by identifying, planning and executing electric safety and reliability work more efficiently. This includes bundling work on powerlines into one scope of work instead of doing multiple jobs on a section of powerline.

PG&E is also working to reduce its financing costs by applying for and securing U.S. Department of Energy (DOE) grants and loans.

The DOE recently approved a $15 billion loan guarantee to pay for grid modernization work. PG&E estimates this could save customers up to $1 billion net present value over the life of the loan.

Customer support options

PG&E has many programs to help customers lower their energy use and manage costs.

Customers can apply online for Budget Billing to receive more predictable payments. PG&E recalculates customers’ energy use every month based on their average energy costs over 12 months to avoid seasonal spikes in bills.

A Home Energy Checkup helps customers understand their energy use and gives free customized savings tips online.

Income-eligible customers can apply to receive a 38% discount for electric and 20% discount for gas from California Alternate Rates for Energy (CARE) Program or 18% electric bill discount from Family Electric Rate Assistance (FERA) Program.

Learn about more ways to manage your energy use and costs.