About Residential Rate Reform

What Is Changing and Why?

On July 3, 2015, the California Public Utilities Commission approved a plan that will change existing residential electric rates for customers of investor-owned utilities in California, including Pacific Gas and Electric Company, Southern California Edison and San Diego Gas & Electric Company. The rate reform proceeding was mandated in 2013 by state law AB327.

The CPUC’s decision will change the way most Californians are billed for electricity. This rate reform plan will not increase PG&E's revenues or profits.

These changes are happening because current rate structures were established during the energy crisis in 2001, when energy was in limited supply, electricity prices were at record highs and issues with electric reliability were frequent occurrences. In addition, renewable energy wasn’t widely accessible and meters were read manually. Since then, things have changed. Progress has been made in nearly every sector of energy.

Expected PG&E rate changes will include:
  • The existing four-tier rate structure will be reduced to two tiers

  • The price difference between the existing tiers will be reduced

  • A "minimum bill," not to exceed $10 will be implemented
  • Additional time-of-use rates will be available
  • In 2017, a "super-user electric surcharge" will be adopted

PG&E's goal is to make rates simple and easy to understand. As these changes take effect, we will be sure to explain the impact on your monthly energy statement and provide you with information that can help you save energy and money.
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We're here to help you save energy and money through programs such as CARE, Energy Savings Assistance Program, energy management tips and audit tools, energy efficiency programs and rebates, and payment options including Balanced Payment Plan.
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How Will the Funds Be Invested?

These rate changes will not increase PG&E's overall revenues or profits. PG&E's average bills will remain among the lowest in the country.
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Where Does My Energy Dollar Go?

PG&E invests the money it receives from residential customers like you to improve safety, reduce outages and provide cleaner energy. This chart illustrates some of the major costs:

Average Standard Rate for Electricity

Energy Supply (56%): The cost of generating and purchasing power for PG&E customers. More than 50 percent of our electricity comes from sources that are free of greenhouse gas emissions, giving us some of the cleanest energy supplies in the nation.

Transmission & Distribution (32%): Operating and maintaining the grid to deliver safe, reliable service. Includes new Smart Grid technology to reduce outages and more quickly restore service to customers.

Public Purpose Programs (7%): Promoting the public good, including discounts for income-qualified customers, investments in energy efficiency programs, and the California Solar Initiative.

Other (5%): Legacy costs for nuclear plant decommissioning, electric generation deregulation, and the impact of the 2001-2002 California energy crisis.

  • An Energy Evolution
  • Rethink HVAC
  • Diversity and Inclusion