IMPORTANT

2023 General Rate Case

Funding to improve safety and reliability for customers

At PG&E, we’re strengthening our systems to meet California’s needs.

 

The California Public Utilities Commission (CPUC) approved PG&E’s 2023-2026 General Rate Case (PDF) (GRC) on November 16, 2023. The GRC will fund:

  • Permanent wildfire risk reduction
  • Critical gas and electric safety and reliability investments
  • Electric capacity upgrades to support new business connections
  • California’s climate resiliency and bold clean energy goals

 

More than 85% of PG&E’s proposed increase was to reduce risk in PG&E’s gas and electric operations. It was originally submitted in June 2021.

The GRC funds these key safety and reliability investments for the benefit of customers:

  • A permanent risk reduction. It eliminates ignition from utility equipment by nearly 98%.
  • The safest, most reliable and cost-effective solution. It helps improve air and water quality from fewer fires, and protects wildlands.
  • Improves access to homeowners’ insurance at lower premiums, over the long run.
  • One of PG&E’s layers of protection that have reduced wildfire risk from company equipment by 94%. This is based on the CPUC’s Safety Model Assessment Proceeding carried out by PG&E.

  • Replacing 139 miles and 24 miles of plastic and steel distribution natural gas pipeline, respectively.
  • Inspecting 343 miles of gas transmission pipeline with state-of-the-art tools that run inside the pipeline.
  • Strength-testing 43 miles of gas transmission pipeline. This checks integrity and reconfirms the maximum allowable operating pressure.
  • Using advanced mobile leak-detection technology to quickly find and fix gas leaks. Improves safety and air quality by reducing methane emissions.

  • Increasing capacity to support state goals. These include transportation electrification, affordable housing and economic development.
  • Grid work to support widespread adoption of electric vehicles. This will reduce climate change impacts and improve air quality.
  • Exploring electric-vehicle and other types of energy storage. We are also making microgrid advancements. This will help improve grid resiliency during extreme weather and peak-energy demand periods.

The GRC’s impact on monthly customer bills:

 

An increase of approximately 12.8% in 2024, 1.6% in 2025 and decrease by 2.8% 2026. The typical bill will increase by about $32.50 in 2024, $4.50 in 2025, and decrease by almost $8.00 in 2026.

 

Typical residential non-CARE combined gas and electric bills: An average increase of 3.6% over three years (2024-2026).

 

Typical residential CARE customer combined gas and electric bill: An average increase of 3.8% over three years. Typical bills will increase by about $21.50 in 2024, $3 in 2025, and decrease by about $5.50 in 2026.

 

Customer bills may vary based on location, energy use, rate plan, program enrollment, weather and other factors.

 

Rates take effect January 1, 2024. However, customers may not see the change in their bill until February. It depends on their billing cycle.

 

The GRC process

 

The CPUC requires PG&E and other regulated utilities to submit a GRC proposal every four years. The proposals determine fair energy rates. The rates are based on the cost of operating, maintaining and improving the safety and reliability of our electric and natural gas systems.

 

The GRC is a thorough and public regulatory proceeding. It includes a series of filings, hearings and negotiations. It also includes feedback and input from customers, customer advocates and stakeholders. The process ensures energy rates are based on the actual costs.

 

This four-year plan does not include:

  • Electric transmission costs
  • State-required Public Purpose Programs to support low-income customers and energy efficiency
  • The actual cost to purchase gas and electricity that is served to customers

These costs are proposed through separate rate cases.

Frequently asked questions

DA and CCA providers set their own rates. Customers should check with their providers to learn how this would affect their overall bill.

  • Look into PG&E’s:
    • No- and low-cost options to help customers reduce energy use and better manage monthly energy bills.
    • Financial assistance programs for income-eligible customers.
  • Get a personalized Rate Plan Comparison to find the best rate plan for your personal energy use.
  • Take a free 5-minute Home Energy Checkup. It will identify wasted energy sources and provide a savings plan to lower monthly bills.
  • Enroll in Budget Billing. This plan spreads out your energy costs throughout the year to avoid peaks in months of higher use.
  • Receive Bill Forecast Alerts. They let you know when your bill is projected to exceed an amount set by you. You can then reduce energy use prior to your next bill.

Customers may qualify for bill assistance:

 

We recognize our responsibility to serve our customers safely and reliably. We are focused on how to deliver work safely at a lower cost. We aim to keep customer costs at or below assumed inflation for the long term, between an average of 2 and 4% a year.

 

  • We reduced operating costs by 3% in 2022. We achieved cost savings in 2023 and expect additional savings in 2024 by reducing costs:
    • Vegetation management. Improved work practices and quality controls while meeting standards and customer commitments.
    • Undergrounding. Advancements in construction methods, improvements in design and efficiencies in execution.
  • We worked with customer advocates to create an better option than commercial insurance. This will save customers up to $1.8 billion over the next four years.
  • We are seeking non-traditional sources to fund projects. These include federal grants and loans to speed up safety work and the clean energy transition at a lower cost to customers. Lower-cost Department of Energy loans could result in hundreds of millions of dollars in savings.

More on regulation

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