How PG&E Electric Bills Have Stabilized Over the Past Year

You may have read PG&E had multiple rate changes approved by our regulator, the CPUC, in the past year. You may have also heard PG&E say that average electricity bills are lower this year than a year ago. How can both be true?

First, PG&E did have multiple rate change requests approved by the CPUC in the past year. This is because PG&E recovers different parts of what it costs to maintain and improve the energy system at different times.

However, it’s also true that some of the recent rate changes were decreases. Electric bills decreased by 9.4 percent in July 2024, and there was another 0.4% decrease in January 2025. Those decreases more than offset the rate increases since last January. 

As you can see from the graph below, the result is that the typical electric bill is about 3% lower today than it was last year, which is saving customers about $7 per month. This assumes the average customer is using about the same amount of energy this year as they did last year. 

Electric charges make up about 70% of the bill, on average, for customers who receive both electric and gas service from PG&E. Because electric charges have decreased in the past year, average combined gas and electric monthly bills for customers using the typical amount of energy over the course of the year have remained relatively flat over that time.

PG&E is committed to keeping average bills stable. We plan to limit any future increases to between 2-4% annually.

PG&E recognizes that higher costs, including energy bills, can be a challenge for customers. The company is making progress and exploring every opportunity to lower energy costs; working to get the most out of every dollar spent providing safe and reliable gas and electric service to customers; and continuing to explore non-traditional ways help stabilize bills. 

Here are just some of the ways we are reducing our costs for customers:

• Returning $500 million to electric customers related to programs where we spent less than what was approved.

• Selling excess clean energy generation that is not needed to meet state mandates and using proceeds to reduce rates.

• Reducing operating and capital costs by more than $1 billion in 2024 by reducing materials, labor and other costs and working more efficiently.

• Collaborating with customer advocates on an alternative to commercial insurance, saving up to $1.8 billion over four years.

• Accessing federal grants and loans to reduce financing costs, including a $15 billion Department of Energy loan guarantee that could save customers up to $1 billion.