The utility said the cuts, which will go into effect on Jan. 1, come as “electric prices have stabilized and are going down.” PG&E noted that this is the fourth decrease for electric rates in two years.
Residential customers are set to receive a decrease of about 5%, which amounts to around $7 per month. For customers under the California Alternate Rates for Energy discount program, rates will decrease by about 6%, or around $4 per month, PG&E said in a news release.
PG&E said residential bills will drop because the utility has completed several rate-funded projects and that the cost it pays for electricity will be lower than it was in 2025.
Natural gas rates are also decreasing by 3%, which amounts to about $1 per month for residential customers. And for CARE customers, the natural gas rates will decrease by 2.6%, PG&E said.
The utility added that other factors, including below-normal temperatures, can contribute to higher bills.
The rate decrease comes as PG&E faces major backlash following several massive power outages in the Bay Area. On Dec. 20 at around 6:41 p.m., approximately 130,000 customers in San Francisco were without power because of a fire at a substation on Eighth and Mission streets. The last batch of customers waited several days for their power to be restored. And on Christmas Eve, thousands of customers in the South Bay were without power because of a fire at the Saratoga substation.
