PG&E Decreases Residential Electric Rates on Sept. 1; Customers Receive California Climate Credit on October Electric Bills

Rhea-AI Summary

PG&E (NYSE:PCG) announced a 2.1% decrease in electric rates effective September 1, 2025, reducing typical residential monthly bills by approximately $5 for customers using 500 kilowatt hours. Additionally, residential customers will receive a $58.23 California Climate Credit in October.

The company has achieved $2.5 billion in cost savings over the past three years through operational efficiencies and technology improvements. Gas rates will also decrease by 0.4%, saving typical residential customers about $0.39 monthly. PG&E's rate reductions contrast with national trends, as U.S. electric prices are forecast to increase through 2026.

Positive

• Electric rates decreased by 2.1%, lowering typical monthly bills by $5
• Customers to receive $58.23 California Climate Credit in October
• $2.5 billion in operating and capital cost savings achieved over past three years
• Gas rates decreased by 0.4%, providing additional savings
• Multiple financial assistance programs available for eligible customers

Negative

• None.

Insights

Utility Sector Analyst

PG&E's 2.1% rate decrease and cost-saving initiatives show positive operational efficiency against industry inflation trends.

The 2.1% electric rate reduction for all residential customers represents a tangible financial benefit for PG&E's customer base, translating to approximately $5 monthly savings for typical 500 kWh users. This rate decrease is particularly notable as it occurs when the U.S. Energy Information Administration forecasts rising national electricity prices through 2026 that outpace inflation.

The company's $2.5 billion in operational and capital cost savings over three years demonstrates significant efficiency improvements through technological innovation and process optimization. These savings have enabled PG&E to accelerate safety and reliability improvements while simultaneously lowering customer rates - a difficult balance to achieve in the utility sector.

This is the third electric rate reduction in 15 months, establishing a pattern of rate stabilization that differentiates PG&E from national trends. The additional $58.23 California Climate Credit and 0.4% gas rate decrease further enhance customer affordability. The forward guidance indicating another rate decrease in 2026 suggests sustainable cost management rather than one-time adjustments.

The company's strategic focus on cost control while maintaining infrastructure investment is particularly important given the operational challenges PG&E has faced regarding wildfire safety. The removal of temporary costs related to completed wildfire safety projects indicates the company is transitioning from emergency response mode to more normalized operations, which typically leads to improved financial stability and predictability.

PG&E Electric Rates Decline While National Prices Forecast to Rise through Next Year

OAKLAND, Calif., Sept. 2, 2025 /PRNewswire/ -- Electric rates for all Pacific Gas and Electric Company (PG&E) residential customers decreased by 2.1% on September 1. For the typical residential customer who uses 500 kilowatt hours a month and does not receive discounts, monthly bills will decrease by about $5.

Electric rates decreased because PG&E has completed a number of projects to increase wildfire safety and respond to emergencies. These temporary costs were removed from rates, helping to lower bills.

In addition to the electric rate decrease, residential electric customers also will receive a $58.23 credit from the California Climate Credit during their October billing cycle.   

PG&E is working hard to stabilize electric prices through company-wide savings programs and working to lower financing costs. Residential electric rates have dropped three times over the past 15 months, which offset increases over that time, and rates are expected to go down again in 2026.

"While we continue making progress to stabilize electric prices for our customers, we know there is more work to do," said Carla Peterman, PG&E executive vice president of corporate affairs and chief sustainability officer. "Our focus is on making our system safer and more reliable for customers every day, while managing our costs to keep bills as low as possible."

In the last three years, PG&E has saved approximately $2.5 billion in operating and capital costs by working more efficiently and using new technologies and improved processes, such as using drones to inspect equipment and bundling electric projects into a single scope of work. PG&E has used the savings to do more safety and reliability work for customers more quickly and to offset some costs of that work.

PG&E's efforts to stabilize electric rates are going against the national trend for forecasted electric prices. While PG&E residential electric rates are going down in September and are also expected to decrease again in 2026, the U.S. Energy Information Administration forecasts that national electric prices are expected to increase through 2026, outpacing forecasted inflation. 

California Climate Credit

Residential electric customers will receive an October Climate Credit of $58.23 on their bill. Eligible small business customers also will receive the Climate Credit.

PG&E customers receive the California Climate Credit twice each year, in the spring and fall.

The California Climate Credit is part of the state's efforts to combat climate change and is distributed by PG&E to help utility customers during the transition to a low-carbon future.

September Gas Rate Decrease

The September rate change also includes gas rates decreasing by 0.4%, saving a typical (31 therms/month) residential customer about $0.39 per month on their energy bill.

Other Ways to Save

PG&E offers other no- and low-cost tools to help customers save energy and money.

• Budget Billing averages your energy costs over the last 12 months to determine your monthly payment and avoid season spikes and billing surprises.
• Home Energy Checkup is a free online tool that helps customers assess their energy use and provides customized savings tips.
• HomeIntel is a free energy saving program that includes a Smart Audit and a personal energy coach. Customers who have lived in their home for more than a year and have a smart meter installed are eligible to participate.
• Savings Finder is a free online tool that gives personalized recommendations for financial assistance, bill management programs and other resources to ease monthly energy costs.

Financial assistance programs are available for customers who qualify including:

• California Alternate Rates for Energy (CARE) Program: offers a monthly discount of 20% on gas and an average of about 35% on electric bills (compared to non-CARE bundled customers).
• Family Electric Rate Assistance (FERA) Program: new guidelines provide a monthly discount of 18% on electricity, regardless of household size.  
• Energy Savings Assistance (ESA) Program provides certain energy-saving improvements at no charge.
• PG&E Relief for Energy Assistance through Community Help (REACH): provides up to a $300 bill credit to help income-eligible customers with past due balances to prevent service disconnections.
• PG&E Match My Payment Program: offers a dollar-for-dollar match, up to $1,000, for qualifying low-to moderate-income customers to pay past-due bills to prevent service disconnections. Customers must make at least a $50 payment toward their outstanding bill each time to receive matching dollars.
• Low Income Energy Assistance Program (LIHEAP): a federally funded assistance program overseen by the state that offers a one-time payment up to $1,500 on past due bills to help low-income households pay for heating or cooling in their homes.

About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news  

View original content to download multimedia:https://www.prnewswire.com/news-releases/pge-decreases-residential-electric-rates-on-sept-1-customers-receive-california-climate-credit-on-october-electric-bills-302544108.html

SOURCE Pacific Gas and Electric Company

FAQ

How much will PG&E (PCG) electric rates decrease in September 2025?

PG&E's electric rates will decrease by 2.1% starting September 1, 2025, resulting in approximately $5 monthly savings for typical residential customers using 500 kilowatt hours.

What is the California Climate Credit amount for PG&E customers in October 2025?

PG&E residential electric customers will receive a $58.23 Climate Credit during their October 2025 billing cycle. This credit is distributed twice yearly as part of California's efforts to combat climate change.

How much has PG&E saved in operational costs over the past three years?

PG&E has saved approximately $2.5 billion in operating and capital costs over the past three years through improved efficiency, new technologies, and better processes like using drones for equipment inspection.

What financial assistance programs does PG&E offer to customers?

PG&E offers several programs including CARE (20% gas and 35% electric discount), FERA (18% electricity discount), REACH (up to $300 credit), and Match My Payment Program (up to $1,000 matching funds).

How much will PG&E gas rates decrease in September 2025?

PG&E gas rates will decrease by 0.4%, resulting in approximately $0.39 monthly savings for typical residential customers using 31 therms per month.