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? 

As of January 2025, PG&E has implemented a 1.5% increase in residential electric bills. While this might seem small on its own, it follows five previous rate hikes in 2024, making the overall impact a financial strain for many households across Northern California. 

By the end of 2024, customers had already experienced an average increase of $60 in their monthly electricity bills compared to the previous year, with energy costs rising by 56% over the past three years. 

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. Solar energy is becoming an increasingly popular choice for those seeking to reduce their dependence on utility companies and lower their utility bills in the long term.

Why Switch to Solar & Battery Storage?  

1) Lock in Lower Rates:

By generating your own electricity with solar power, you can significantly reduce or even eliminate 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:  

1. Regulatory Oversight and Decisions 
   California Public Utilities Commission (CPUC) Decisions and Rulings  
2. Public Opinion and Advocacy 
   Utility Reform Network (TURN) 
3. Financial Performance of PG&E 
   PG&E’s Annual and Quarterly Financial Reports 
4. State Energy Oversight 
   California Energy Commission (CEC)  
5. 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"