Will my electric bill go up in California? See how much prices could rise for PG&E customers

Angela Rodriguez
·3 min read
5

Customers of Pacific Gas and Electric Company will pay more for electricity starting this month, according to an email sent from the utility company.

PG&E started charging 13% more for power on Jan. 1.

While some customers might see a change in their bill for January, others might not notice the price increase until February.

Paul Moreno, a spokesperson for PG&E, said customers can expect lower natural gas prices for the remainder of January.

“For January, January natural gas bills are forecast to be about 9% lower than in January 2023, reducing the typical customer gas bill by about $17,” Moreno wrote in an email to The Sacramento Bee.

Though PG&E bills are increasing, the company is saving costs for customers by improving work practices, adding quality controls and seeking financing to reduce borrowed costs, the company said on its website, according to a news release.

“The investments we plan in 2024 and beyond focus on three goals: Keeping our energy system safe and reliable for our customers, meeting growing energy demand and adding even more renewables to our energy mix,” Carla Peterman, PG&E executive vice president, stated in the news release.

Here’s how much California PG&E customers can expect rates to increase on their utility bills:

How will new PG&E rates affect my electric bill?

The current flat rate for the winter is $0.213 per kWh, according to PG&E.

Based on the company’s estimates for the new rates, customers can expect the following increases on their household bills:

  • Low usage: An additional $3 for 33 therms of gas and an additional $13 for 250 kilowatt-hours of electricity.

  • Medium usage: An addition $6 for 50 therms of gas and an additional $32 for 500 kWh of electricity.

  • High usage: An additional $9 for 70 therms of gas and an additional $51 for 750 kWh of electricity.

According to the PG&E website, therm factors are used to convert the volume of gas to energy units.

A kilowatt-hour measures the energy used in kilowatts per hour, the Direct Energy website.

Rate costs can vary depending on the California Climate Credit and any programs customers are currently enrolled in, the email states.

Moreno said the company offers a number of programs to help customers lower their energy bills every month, including discounts for income-qualified customers.

“On average, residential rates for services provided by PG&E to Direct Access and Community Choice Aggregation customers would increase by 24% compared to current rates,” the email states.

Moreno said the 24% increase does not apply to PG&E’s customers.

“Gas bills are not increasing 24%,” Moreno said. “In fact, natural gas prices are lower this winter so far and will result in lower natural gas bills for customers, compared to a year ago.”

Why is my PG&E bill increasing?

According to the PG&E website, the utility company wants customers to understand why bills are increasing and how it is working to keep bills as low as possible.

While focusing on these three goals, Peterman said the company is also focusing on finding new ways to keep future bill increases at or below a broader, long-term inflation rate of 2 to 4%.

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