PG&E customers are facing their sixth rate increase in just 12 months, as California's utility giant continues to raise electricity costs. Here's everything you need to know about PG&E’s latest rate increase and how you can manage rising utility bills.
On December 19, PG&E received its fifth and sixth approvals for rate hikes from the California Public Utilities Commission (CPUC) - marking a record-breaking year for PG&E.
But what does this mean for your wallet, and is there anything you can do to reduce the impact on your energy bill?
How Will PG&E’s 6th Rate Increase Impact Your Electric Bill in 2025?
Starting in January 2025, PG&E has rolled out a 1.5% increase in residential electric bills. On its own, that doesn’t sound like a huge jump, but when you consider it’s the 6th rate hike in just 12 months, it starts to add up. For many households across Northern California, these continuous increases are beginning to feel like a financial burden.
By the end of 2024, PG&E customers were already paying an average of $60 more per month on their electricity bills compared to the year before. That can quickly become a serious strain on a household budget.
What’s the Total Impact of PG&E's Latest Rate Hikes?
The Utility Reform Network (TURN) predicts that by early 2025, the average household will be paying about $720 more a year for electricity compared to 2023. This is based on a typical household using about 500 kilowatt-hours (kWh) of electricity each month.
So while that 1.5% increase may seem small at first, when you add it to everything that’s already gone up in the past year, it can feel like a pretty big hit.
How much has PG&E's rates increased over time?
PG&E's rates have increased significantly over time. In the last three years alone, rates have risen by 56%. Looking at a longer time frame, recent reports show that PG&E electricity rates have more than doubled, increasing by over 110% in the past decade.
What’s Behind PG&E’s 6th Rate Increase?
The reasons cited for the rate hikes include essential safety measures such as tree trimming around power lines, upgrading PG&E’s customer data and billing system, and the extension of Diablo Canyon’s operations.
However, these hikes have been contentious, especially as PG&E continues to raise rates while its profits soar. PG&E has also been criticized for using customer-funded fire risk mitigation accounts to pay for advertising, including a $6 million campaign promoting its wildfire prevention efforts.
PG&E’s Record-Breaking Year: A Profitable 2024 Amid Six Rate Hikes
Despite rate increases for customers, PG&E has reported strong financial performance, with profits rising 24% in 2023 to reach $2.24 billion, the company is poised to earn even more in 2024, having already posted $2 billion in profits through the first three quarters.
PG&E's share price grew by more than 12% throughout 2024, and the latest quarterly profit of $791 million exceeded Wall Street's expectations.
Public Opposition and Regulatory Concerns
Public pushback has been significant, with groups like the Utility Reform Network (TURN) pushing for state legislation to prevent utilities from passing costs like lobbying or advertising onto customers. A Sacramento Bee article highlighted how PG&E’s advertisements, funded by customers, have included slickly produced commercials about its wildfire prevention efforts, further fueling frustration among ratepayers.
Despite the protests, PG&E has more rate increase proposals set to go in front of regulators in the coming months.
How to Protect Yourself from Rising Energy Costs
With PG&E's rates continuing to rise, many California homeowners are looking for ways to take control of their energy future.
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Track Your Usage: Keep an eye on your monthly electricity usage to see where you might be using more energy than necessary. You might find areas to cut back, like turning off lights when you don’t need them or unplugging electronics when they’re not in use.
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Consider Solar + Battery Storage: Going solar helps you rely less on PG&E's rates, meaning you’ll be less affected by future rate hikes.
Why Switch to Solar & Battery Storage?
1) Lock in Lower Rates:
By generating your own electricity with solar power, you can significantly reduce your monthly electricity bills.
2) Energy Independence:
Solar battery storage allows you to store energy for use during peak hours or outages, helping you avoid costly peak pricing.
3) Protection Against Future Rate Hikes:
As utility rates continue to rise, solar energy systems provide predictable costs, giving you a reliable alternative to fluctuating PG&E prices.
4) Environmental Impact:
Solar energy is a clean, renewable source that helps reduce your carbon footprint and protect the environment.
Act Now: Get Ahead of Rising Utility Bills
Citadel Roofing & Solar offers free consultations to help you explore how solar energy can benefit you. Our experts will advise on a solar and battery system tailored to your home’s needs and guide you through the best incentives and rebates to make the transition as affordable as possible.
Don’t let PG&E’s rate hikes control your finances! Schedule a free consultation to speak with one of our solar experts!
Sources:
- Regulatory Oversight and Decisions
California Public Utilities Commission (CPUC) Decisions and Rulings - Public Opinion and Advocacy
Utility Reform Network (TURN) - Financial Performance of PG&E
PG&E’s Annual and Quarterly Financial Reports - State Energy Oversight
California Energy Commission (CEC) - Recent News and Public Reactions
The San Francisco Standard - "PG&E raked in billions this year. Our bills were raised six times"
Sacramento Bee - "California Regulators Approve PG&E's 6th Rate Hike of 2024"