PG&E Bills to Decrease on January 1
PG&E announced that electric bills will decrease starting January 1. This change reflects a trend of stabilizing and declining electric prices, marking the fourth reduction in rates within a two-year span.
Details of the Rate Decreases
Residential customers can expect a reduction of approximately 5%, equating to about $7 off their monthly bills. Customers enrolled in the California Alternate Rates for Energy (CARE) program will benefit from a larger decrease of about 6%, or about $4 per month.
Several factors contribute to these reductions:
- Completion of rate-funded projects by PG&E.
- Lower costs for electricity compared to prices in 2025.
Natural Gas Rate Reductions
In addition to electric rates, natural gas prices will also see a decline. Residential customers will enjoy a 3% decrease, roughly translating to $1 savings monthly. For CARE customers, the natural gas rates will drop by 2.6%.
External Factors Impacting Energy Bills
PG&E acknowledged that external conditions, such as below-normal temperatures, could result in higher billing for some customers. This announcement follows public criticism regarding PG&E’s reliability after multiple extensive power outages occurred in the Bay Area.
Recent Power Outages
PG&E faced significant backlash due to serious outages:
- On December 20, around 6:41 p.m., about 130,000 customers in San Francisco lost power due to a fire at a substation on Eighth and Mission streets. Some customers experienced days without electricity before restoration.
- On Christmas Eve, outages affected numerous customers in the South Bay, following another fire at the Saratoga substation.
The upcoming rate reductions are aimed at addressing customer concerns while reflecting improved operational efficiency within PG&E.
