Electric rates for Pacific Gas and Electric Company (PG&E) residential customers dropped by 2.1% on September 1, 2025. This change will result in a typical residential customer who uses 500 kilowatt hours per month seeing their monthly bill decrease by about $5.
The rate reduction is attributed to the completion of several wildfire safety and emergency response projects. The costs related to these projects were temporary and have now been removed from customer rates.
Additionally, PG&E announced that residential electric customers will receive a $58.23 California Climate Credit during their October billing cycle. Small business customers who are eligible will also receive this credit. The California Climate Credit is distributed twice yearly as part of statewide efforts to help utility customers transition to a low-carbon future.
Carla Peterman, PG&E executive vice president of corporate affairs and chief sustainability officer, stated, “While we continue making progress to stabilize electric prices for our customers, we know there is more work to do. Our focus is on making our system safer and more reliable for customers every day, while managing our costs to keep bills as low as possible.”
Over the past three years, PG&E has saved approximately $2.5 billion in operating and capital expenses through efficiency improvements such as deploying drones for equipment inspections and combining multiple electric projects into single scopes of work. These savings have allowed the company to accelerate safety and reliability initiatives while offsetting some related costs.
This local trend contrasts with national forecasts; according to the U.S. Energy Information Administration, national electric prices are expected to rise through 2026 at a rate faster than inflation (https://www.eia.gov/outlooks/steo/report/electricity.php). In comparison, PG&E’s residential electric rates have decreased three times over the past 15 months and are projected to drop again in 2026.
In addition to lower electricity charges, gas rates also declined by 0.4% in September, providing a typical residential customer using 31 therms per month with an estimated savings of about $0.39 each month.
PG&E continues to offer various tools and financial assistance programs designed to help qualifying customers manage energy use and reduce costs.
Pacific Gas and Electric Company serves more than sixteen million people across Northern and Central California.
