PG&E Cuts Residential Rates 1.8%, Bundled Prices 13% Below January 2024
Pacific Gas & Electric cut residential electric rates by 1.8% on March 1, the fifth reduction since January 2024, bringing bundled rates 13% below early 2024 levels and saving typical customers about $25 per month. The company forecasts overall residential electric rates to fall in 2026 versus 2025.
1. Electric Rate Reduction
On March 1, 2026, Pacific Gas & Electric implemented a 1.8% reduction in residential electric rates for bundled supply and delivery customers, marking the fifth rate cut since January 2024 and lowering rates 13% below January 2024 levels.
2. Customer Savings and Forecast
The March decrease trims typical residential bills by about $5.14 per month and CARE customer bills by around $10.37, while cumulative cuts since early 2024 amount to roughly $25 in monthly savings. PG&E expects overall residential electric rates in 2026 to be lower than in 2025.
3. Base Services Charge Restructuring
A new Base Services Charge separates fixed infrastructure, billing, and program costs from per-kWh rates, set at approximately $24 for most customers, $6 for CARE participants and $12 for FERA or affordable housing customers, aiming to enhance bill transparency and affordability.
4. Natural Gas Rate Adjustment
Effective March 1, 2026, natural gas rates rose by 0.3%, increasing typical residential bills by about $0.24 per month on 31 therms of usage and raising CARE customer bills by approximately $0.16 on 26 therms.