Pacific Gas and Electric Company (PG&E) will lower electric rates for customers starting January 1, 2026. This marks the fourth reduction in electric prices by the company over the past two years. Along with this decrease, natural gas rates are also set to go down.
According to PG&E, these reductions mean that residential electric rates will be 11% lower than they were in January 2024. The company stated that a typical residential customer will pay about $20 less on their monthly bill compared to two years ago.
Patti Poppe, CEO of Pacific Gas and Electric Corporation, said, “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.”
The U.S. Energy Information Administration projects that national electric prices will increase by nearly 10% between 2024 and 2026. In contrast, PG&E’s announcement comes as part of its efforts to manage energy costs for its customers.
Starting January 1, residential electric rates for customers who receive both electricity supply and delivery service from PG&E will drop by about 5% compared to current levels. Customers enrolled in the California Alternate Rates for Energy (CARE) program will see a decrease of about 6%. This translates into a reduction of approximately $7 per month on typical residential electric bills and about $4 per month for CARE participants.
For natural gas customers, PG&E says rates will decline by 3%, with CARE customers seeing a decrease of about 2.6%. The utility attributes these decreases to certain costs being removed from rates as well as lower greenhouse gas compliance costs. On average, this means a reduction of around $1 per month on typical residential natural gas bills.
PG&E does not mark up energy supply costs on natural gas bills; the price changes each month based on market conditions. The company manages price volatility through various strategies such as purchasing gas from multiple sources, storing it when prices are low, and using financial tools to protect against winter spikes.
Customers who receive electricity generation from Direct Access or Community Choice Aggregator providers have different rate structures determined by those entities rather than PG&E.
Pacific Gas and Electric Company serves more than sixteen million people across Northern and Central California. More information can be found at pge.com and pge.com/news.
The original press release can be viewed at https://www.prnewswire.com/news-releases/pge-to-lower-electric-prices-on-jan-1-fourth-decrease-in-two-years-302650921.html
