PG&E Cuts Rates

California utility delivers on promise; electrical rates cut for the fourth time in two years

Pacific Gas and Electric Company (PG&E), California's largest utility and one of the biggest in the nation, cut electric rates for the fourth time in two years on January 1, 2026. Natural gas rates also are going down, per a company press release sent to Electrical Apparatus dated December 30th.

Combined with previous decreases, residential electric rates will reportedly be 11% lower than in January 2024, reinforcing the company's commitment to manage energy costs for customers. "Since January 2024, typical residential electric customers will pay about $20 less on their monthly bill," per the PG&E press release.

"We know how important stable and predictable bills are for families and businesses. That's why we are lowering rates, even as national prices are expected to rise. Our actions match our promises: we've reduced electric rates multiple times since 2024, and we remain committed to finding new ways to save and pass those savings on to our customers," said Patti Poppe, Pacific Gas and Electric Corporation CEO.

PG&E's electric prices have stabilized and are going down, even while the U.S. Energy Information Administration is forecasting national electric prices to increase by nearly 10% between 2024 and 2026.

Electric Rate Decrease

On January 1, 2026, residential electric rates will decrease about 5% for customers who get both electricity supply and delivery service from PG&E, compared to current rates. For customers who receive the California Alternate Rates for Energy (CARE) income-eligible discount, rates will decrease about 6%.

Typical residential electric bills will decrease by about $7 per month. For CARE customers, bills will go down approximately $4 per month. Typical electric customers use about 500 kilowatt hours of electricity per month.

Residential electric rates are decreasing for customers who get both energy supply and delivery from PG&E because:

• PG&E has completed a number of safety and reliability projects for customers, and those costs are coming out of rates.

• The prices PG&E pays for electric commodity to serve customers who receive energy supply from the company are expected to be lower in 2026 than in 2025.

  
  

Natural Gas Rate Decrease

On January 1, 2026, PG&E natural gas rates will decrease by 3%, compared to current rates. For CARE customers, prices will decrease 2.6%. Decreases are due to certain costs coming out of rates and lower greenhouse gas compliance costs.

Typical residential natural gas bills will decrease by about $1.00 per month. A typical residential customer uses about 31 therms of energy monthly.

The energy supply portion of natural gas bills changes monthly based on market prices. PG&E does not mark up energy supply costs.

PG&E manages spikes in natural gas supply prices for customers by buying gas from multiple sources, storing gas when prices are low and using financial tools to protect against price spikes in winter. These strategies help make gas service more reliable and bills more predictable for residential and small business customers.

Other factors can impact gas bills. Colder-than-average temperatures can increase customer gas usage and bills. Growing demand for Liquified Natural Gas and electricity from natural gas-fired power plants can increase gas demand and prices.