PG&E to Lower Electric Prices on Jan. 1, Fourth Decrease in Two Years

Rhea-AI Summary

Pacific Gas and Electric (NYSE:PCG) said it will cut residential electric rates on Jan. 1, 2026, the fourth decrease in two years. Residential electric rates for customers who receive both supply and delivery from PG&E will fall about 5% (about $7 per month for a typical 500 kWh household); CARE customers will see about a 6% electric reduction (about $4 monthly). Combined with prior cuts, residential electric rates are 11% lower than Jan. 2024. PG&E also plans a 3% decrease in natural gas rates for most customers (about $1 monthly); CARE gas rates fall about 2.6%. Company cites completed safety and reliability projects, lower 2026 commodity costs, and lower greenhouse gas compliance costs as drivers.

Positive

• Electric rates scheduled to fall ~5% on Jan. 1, 2026
• Residential bills $7 lower per month for typical 500 kWh customer
• Electric rates 11% lower vs Jan. 2024 after multiple cuts
• Natural gas rates set to drop ~3% on Jan. 1, 2026

Negative

• U.S. Energy Information Administration forecasts national electric prices up ~10% between 2024 and 2026
• Energy supply portion of gas bills changes monthly based on market prices
• Direct Access and CCA customers' generation rates not set by PG&E

News Market Reaction – PCG

-0.06%

1 alert

-0.06% News Effect

On the day this news was published, PCG declined 0.06%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Electric rate reduction vs Jan 2024: 11% Monthly bill reduction since 2024: $20 per month 2026 electric rate cut: 5% +5 more

8 metrics

Electric rate reduction vs Jan 2024 11% Residential electric rates will be 11% lower than in January 2024

Monthly bill reduction since 2024 $20 per month Typical residential electric customers pay about $20 less per month since January 2024

2026 electric rate cut 5% Jan 1, 2026 residential electric rate decrease for bundled PG&E customers

CARE electric rate cut 6% Jan 1, 2026 rate decrease for CARE income‑eligible electric customers

Electric bill decrease $7 per month Typical residential electric bills decrease by about $7 per month

Natural gas rate cut 3% Jan 1, 2026 PG&E natural gas rate decrease vs current rates

Gas bill decrease $1.00 per month Typical residential natural gas bills decrease by about $1.00 per month

Typical gas usage 31 therms Typical residential natural gas customer monthly energy usage

Market Reality Check

Price: $17.34 Vol: Volume 9,671,334 is below...

low vol

$17.34 Last Close

Volume Volume 9,671,334 is below the 20-day average of 20,656,323 (relative volume 0.47x). low

Technical Price at $15.99, trading just above the 200-day MA of $15.68, and 21.75% below the 52-week high.

Peers on Argus

PCG was up 1.4% while close peers showed mixed, small moves (e.g., ED +0.06%, WE...

PCG was up 1.4% while close peers showed mixed, small moves (e.g., ED +0.06%, WEC -0.06%, PEG +0.26%), suggesting a company-specific focus rather than a broad utilities move.

Historical Context

5 past events · Latest: Dec 22 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 22	Outage bill credits	Negative	-0.8%	Automatic bill credits after San Francisco power outage impacting customers.
Dec 22	Storm preparedness	Positive	+1.6%	Emergency Operations Center activation and crews pre‑positioned for winter storms.
Dec 18	Bill-pay assistance	Positive	+0.9%	Extension of Match My Payment program and related relief for past‑due bills.
Dec 17	Leadership changes	Positive	+2.7%	New CEO for utility subsidiary and restructured teams to better serve customers.
Dec 12	Dividend declaration	Positive	+2.2%	Quarterly cash dividend on common and preferred stock with set payment dates.

Pattern Detected

Recent PG&E headlines, often framed around customer support, operations, and dividends, have generally been followed by modestly positive price reactions.

Recent Company History

Over the past few weeks, PG&E has highlighted several customer- and operations-focused developments. These include outage-related bill credits on Dec 20, 2025, storm mobilization efforts, and expanded bill‑pay assistance programs with tens of millions of dollars in relief. Leadership and structural changes effective Jan 1, 2026 and regular dividends were also announced. Against this backdrop of customer relief and organizational tuning, today’s rate‑cut news continues the theme of emphasizing affordability and service reliability.

Market Pulse Summary

This announcement details meaningful reductions to PG&E customers’ electric and natural gas bills on...

Analysis

This announcement details meaningful reductions to PG&E customers’ electric and natural gas bills on Jan. 1, 2026, extending rate declines that leave residential electric prices 11% below January 2024 levels. It builds on recent customer‑relief and assistance initiatives highlighted in prior releases. Investors may track how these lower rates interact with PG&E’s cost structure, ongoing safety and reliability investments, and the regulatory environment described in recent 10-Q and 8-K filings.

Key Terms

california alternate rates for energy (CARE), direct access (DA), community choice aggregator (CCA), liquified natural gas, +1 more

5 terms

california alternate rates for energy (CARE) regulatory

"For customers who receive the California Alternate Rates for Energy (CARE) income-eligible discount..."

California Alternate Rates for Energy (CARE) is a state utility program that gives qualifying low-income households a reduced electricity and gas bill, like a steady discount applied at the meter. Investors care because the program lowers revenue per customer, shifts who pays for utility costs, and influences future rate-setting and regulatory risk; think of it as a long-term, government-mandated coupon that changes a utility’s expected cash flow and customer affordability profile.

direct access (DA) regulatory

"PG&E does not set the electric generation rates that Direct Access (DA) or Community Choice..."

Direct access (DA) is a way for traders to send their buy or sell orders straight to the marketplace or electronic venue that matches orders, rather than going through a broker’s slower, pooled system. Think of it like choosing an express lane at a supermarket: it can give faster execution, more control over price and routing, and often lower fees, which matters to investors who value speed and precision but also increases the need for skill and active monitoring.

community choice aggregator (CCA) regulatory

"Direct Access (DA) or Community Choice Aggregator (CCA) providers charge their customers."

A community choice aggregator (CCA) is a local public agency that buys electricity on behalf of residents and businesses in a city or county while the existing utility continues to deliver power and maintain the grid. Think of it as a community buying club that negotiates wholesale supply and energy mix choices — this matters to investors because CCAs change who signs power purchase contracts, shift demand patterns, influence renewable energy procurement, and introduce local regulatory and credit risks that affect utility and generator revenues.

liquified natural gas technical

"Growing demand for Liquified Natural Gas and electricity from natural gas-fired power plants..."

Liquefied natural gas is natural gas that has been cooled until it becomes a liquid, which shrinks its volume so it can be moved and stored like other fuels. For investors, LNG matters because it makes distant gas supplies tradeable, affects global energy prices, and involves large infrastructure and shipping costs—similar to turning many loose boxes into a single pallet that’s easier to ship and sell.

greenhouse gas compliance costs technical

"Decreases are due to certain costs coming out of rates and lower greenhouse gas compliance costs."

Costs a company incurs to meet laws, taxes or permit rules aimed at reducing greenhouse gas emissions, including payments for carbon permits or taxes, expenses to install cleaner equipment, and fees or fines for non‑compliance. These outlays matter to investors because they directly affect profits, cash flow and capital spending needs—similar to a household paying for a home energy upgrade or a city enforcing vehicle inspections—while also changing competitive position and long‑term risk exposure.

AI-generated analysis. Not financial advice.

Company Delivers on Promise to Stabilize Energy Prices for Customers

OAKLAND, Calif., Dec. 30, 2025 /PRNewswire/ -- Pacific Gas and Electric Company (PG&E) will cut electric rates for the fourth time in two years on January 1, 2026. Natural gas rates also are going down.

Combined with previous decreases, residential electric rates will be 11% lower than in January 2024, reinforcing the company's commitment to manage energy costs for customers. Since January 2024, typical residential electric customers will pay about $20 less on their monthly bill.

"We know how important stable and predictable bills are for families and businesses. That's why we are lowering rates, even as national prices are expected to rise. Our actions match our promises: we've reduced electric rates multiple times since 2024, and we remain committed to finding new ways to save and pass those savings on to our customers," said Patti Poppe, Pacific Gas and Electric Corporation CEO.

PG&E's electric prices have stabilized and are going down, even while the U.S. Energy Information Administration is forecasting national electric prices to increase by nearly 10% between 2024 and 2026.

Electric Rate Decrease

On January 1, 2026, residential electric rates will decrease about 5% for customers who get both electricity supply and delivery service from PG&E, compared to current rates. For customers who receive the California Alternate Rates for Energy (CARE) income-eligible discount, rates will decrease about 6%.

Typical residential electric bills will decrease by about $7 per month. For CARE customers, bills will go down approximately $4 per month. Typical electric customers use about 500 kilowatt hours of electricity per month.

Residential electric rates are decreasing for customers who get both energy supply and delivery from PG&E because:

• PG&E has completed a number of safety and reliability projects for customers, and those costs are coming out of rates.
• The prices PG&E pays for electric commodity to serve customers who receive energy supply from the company are expected to be lower in 2026 than in 2025.

Natural Gas Rate Decrease

On January 1, 2026, PG&E natural gas rates will decrease by 3%, compared to current rates. For CARE customers, prices will decrease 2.6%. Decreases are due to certain costs coming out of rates and lower greenhouse gas compliance costs.

Typical residential natural gas bills will decrease by about $1.00 per month. A typical residential customer uses about 31 therms of energy monthly.

The energy supply portion of natural gas bills changes monthly based on market prices. PG&E does not mark up energy supply costs.

PG&E manages spikes in natural gas supply prices for customers by buying gas from multiple sources, storing gas when prices are low and using financial tools to protect against price spikes in winter. These strategies help make gas service more reliable and bills more predictable for residential and small business customers.

Other factors can impact gas bills. Colder-than-average temperatures can increase customer gas usage and bills. Growing demand for Liquified Natural Gas and electricity from natural gas-fired power plants can increase gas demand and prices.

Direct Access and Community Choice Aggregator Customers

PG&E does not set the electric generation rates that Direct Access (DA) or Community Choice Aggregator (CCA) providers charge their customers. DA and CCA customers can contact their DA or CCA provider for more information about how their generation rates may change.

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-to-lower-electric-prices-on-jan-1-fourth-decrease-in-two-years-302650921.html

SOURCE Pacific Gas and Electric Company

FAQ

When will PG&E (PCG) electric and gas rates change and by how much?

Electric rates for bundled customers decrease about 5% and gas rates decrease about 3% effective Jan. 1, 2026.

How much will a typical PG&E residential electric bill fall after the Jan. 1, 2026 decrease?

A typical residential electric bill (about 500 kWh/month) will drop roughly $7 per month.

How much have PG&E electric rates fallen since January 2024 for typical residential customers?

Combined with prior decreases, residential electric rates are about 11% lower than in January 2024.

What is the expected monthly savings for CARE customers from PG&E electric and gas changes on Jan. 1, 2026?

CARE customers see about $4 monthly electric savings and a 2.6% gas rate decrease on Jan. 1, 2026.

Why is PG&E cutting rates for electric and natural gas on Jan. 1, 2026?

PG&E cites completed safety and reliability project costs coming out of rates, lower 2026 commodity costs for electricity, and lower greenhouse gas compliance costs for gas.

Will PG&E's Jan. 1, 2026 rate changes affect customers of Direct Access or Community Choice Aggregators?

No, DA and CCA providers set their own generation rates; DA and CCA customers should contact their provider for rate changes.