PG&E Bills to Decrease Slightly in 2025
Starting January 1, 2025, Pacific Gas and Electric Company (PG&E) customers in California will experience a modest reduction in their electricity bills. This adjustment comes as part of PG&E’s efforts to stabilize energy costs and provide relief to consumers following previous rate increases.
Electricity Rates Drop for Residential Customers
Residential electricity customers can anticipate a 4% decrease in their bills, translating to approximately $11 in monthly savings, assuming consistent energy usage. This reduction is part of PG&E‘s annual rate “true-up,” which reconciles forecasted and actual costs of providing gas and electric services.
Enhanced Savings for CARE Program Participants
Customers enrolled in the California Alternate Rates for Energy (CARE) program will benefit from even greater savings. Due to Assembly Bill 205, which increased the average CARE discount from 35% to 38.5%, these customers will see their electric rates decrease by 5.5%, amounting to an average monthly savings of $8.50.
Natural Gas Rates See an Uptick
While electricity rates are decreasing, natural gas rates are set to rise by 8.6% in January 2025. This increase is attributed to investments in safety and reliability, including pipeline inspections and advanced leak detection technologies. For a typical residential customer using 31 therms, this translates to an approximate $9 monthly increase in gas bills.
Combined Impact on Utility Bills
For customers receiving both electricity and gas services from PG&E, the combined effect of the rate changes will result in relatively stable monthly bills. The decrease in electricity costs is expected to offset the increase in gas charges, leading to an overall monthly bill that remains largely unchanged compared to the previous year.
Future Rate Adjustments and Stability Efforts
PG&E has indicated that while current rates are set, future adjustments are possible. The company is actively working to stabilize rates through cost-reduction measures, including operational efficiencies and securing low-interest loans. Additionally, PG&E has applied for grants and loans from the U.S. Department of Energy, aiming to further alleviate financial pressures on customers.
Assistance Programs for Eligible Customers
To support customers facing financial challenges, PG&E offers several assistance programs:
CARE (California Alternate Rates for Energy): Provides a monthly discount of 20% or more on gas and electricity bills for income-qualified households.
FERA (Family Electric Rate Assistance): Offers an 18% monthly discount on electricity bills for households with three or more people who meet specific income guidelines.
ESA (Energy Savings Assistance): Provides energy-saving improvements at no cost to eligible customers, helping to reduce energy consumption and lower bills.
REACH (Relief for Energy Assistance through Community Help): Offers a one-time energy credit for income-eligible customers facing financial hardships.
AMP (Arrearage Management Plan): Provides debt forgiveness for eligible residential customers with past-due balances.
Medical Baseline: Offers additional energy at the lowest price for customers with certain medical conditions requiring energy-intensive medical equipment.
Conclusion
The slight decrease in PG&E electricity bills starting January 2025 offers some relief to California residents. While natural gas rates are increasing, the overall impact on combined utility bills is expected to be minimal. PG&E’s ongoing efforts to stabilize rates and provide assistance programs underscore the company’s commitment to supporting its customers amid fluctuating energy costs
