Information to help you understand rates

Our rates and our profits are separated and regulated.

It may surprise you to learn that the amount of profit we earn actually has little to do with the amount of gas and electricity we sell. This is because our cost structure is closely supervised by government agencies, and any profits are authorized in advance by regulators. Learn more about how we make money here.  Gas and electric rates are also completely separate, with gas service being provided at a single rate. As a business customer however, you have several electricity rate options from which to choose. Use the information below, or contact us, to help determine which rates will best suit your business needs.

Flat Rate

With flat rates the price of electricity stays constant throughout the day.  However the price you pay will vary according to the season. Electricity prices are higher in the summer and lower in the winter.


Unlike flat electric rates where you are charged the same amount for electricity no matter when you use it, with time-of-use rates, electric charges vary based on the time of day and the season. Prices are higher during summer weekday afternoons when electric demand is higher, typically noon to 6 p.m., May through October. In return, time-of-use rates are lower at all other times. Time-of-use rates are an incentive for customers to shift energy use away from more expensive peak electric-demand hours to save money.

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Peak Day Pricing

Peak Day Pricing combines a time-of-use pricing plan with peak day event surcharges. Time-of-use plans offer lower rates during periods when electric demand is low and higher rates when demand is high. Peak Day Pricing customers also receive credits for electricity use between May 1 and October 31. Peak day “events” add a surcharge to a portion of the peak period during nine to 15 peak day events each year. Under this pricing plan, customers will pay more during peak periods of event days and will pay less during all other periods.

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Demand Charge

Many non-residential rates include a demand charge. Demand is a measurement of the highest usage of electricity in any single fifteen, (or sometimes five), minute period during a monthly billing cycle. Demand is measured in kilowatts (kW). High demand is usually associated with equipment start-up. By spreading equipment start-ups over a longer period of time, you may be able to lower demand and thereby reduce your demand charges.

Solar Choice Plans

PG&E has developed two new solar energy options—PG&E's Solar Choice and Regional Solar Choice. These programs are providing a new way for Californians to support and access renewable energy sources like solar. The programs are optional and provide businesses a convenient new alternative energy choice. Customers can elect to purchase up to 100% of their business' electricity from solar energy generated exclusively within PG&E’s service territory.

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