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PG&E customers can look forward to a small drop in their electricity bills later this month, following a rate decrease that took effect March 1. 

Electricity bills are going down by about $5.14 per month for the typical residential customer. Folks enrolled in California Alternate Rates for Energy (CARE), PG&E’s income-eligible discount program, can expect a $10.37 drop in their monthly bill. 

Why are electricity rates going down now? PG&E says the rates are decreasing “because the costs for completed safety and reliability work coming out of rates exceed the costs for new investments authorized by PG&E’s regulators,” including the California Public Utilities Commission (CPUC). 

In a March 2 news release, PG&E touted the rate decrease as the “third consecutive electric price cut since last September for residential customers who receive both electricity supply and delivery from PG&E.” However, those electricity rate decreases overlapped with a 40% rate increase between 2022 and 2025, as reported by the San Francisco Chronicle.

PG&E is also rolling a new Base Services Charge, which will restructure how customers are charged for services. The charge, estimated at $24 per month for typical residential users, will cover “approved infrastructure and maintenance costs for connecting your home to the grid, energy programs, call center services, and billing.”

“The Base Services Charge lowers the price of electricity for all residential customers,” PG&E stated in a news release, linked below. “It is not a new fee and does not increase the revenue that PG&E collects from customers. It makes bills clearer and more transparent, shifts costs away from low-income customers and makes it more affordable to transition to more clean-powered electric appliances in the home.”

Natural gas rates, on the other hand, will be going up a smidge. Starting March 1, PG&E’s gas rates went up by 0.3%, or about a quarter per month for the average residential user. “The increase is due to the recovery of authorized costs for safety and emergency response work that was completed for customers,” according to PG&E.

PG&E’s North Coast representatives will hold a virtual town hall at 5:30 p.m. on Tuesday, March 28, to answer questions about the new rate changes, discuss the winter storm response and provide more information about upcoming reliability upgrades. The event is for Humboldt, Lake, Marin, Mendocino, Napa, Siskiyou, Solano, Sonoma and Trinity county residents. Details can be found here.

More information about the rate change can be found in the PG&E press release below.

OAKLAND, Calif. – Pacific Gas and Electric Company (PG&E) lowered electric rates on March 1, 2026—the fifth time since January 2024. The decrease marks the third consecutive electric price cut since last September for residential customers who receive both electricity supply and delivery from PG&E.

Combined with previous decreases, residential bundled electric rates are 13% lower than in January 2024, reinforcing the company’s commitment to manage energy costs for customers. Since that time, typical residential electric customer bills are about $25 less per month, assuming a consistent monthly usage of 500 kilowatt-hours.

Based on current information, the company expects typical residential electric rates to be lower overall in 2026 than in 2025. This is part of PG&E’s ongoing effort to stabilize energy prices for customers.

“We are delivering on our promise to lower prices for our customers again, even as national prices are expected to rise. Our actions match our promises: we’ve reduced electric rates five times since January 2024 and remain committed to finding new ways to save and pass those savings on to our customers,” said PG&E Corporation CEO Patti Poppe.

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

March Electric Rate Decrease

On March 1, 2026, PG&E reduced residential electric rates by 1.8% compared to February rates, for customers who get both electricity supply and delivery service from PG&E. Electric rates decreased about 8.3% for customers who receive the California Alternate Rates for Energy (CARE) income-eligible discount.

Typical residential electric bills are decreasing by about $5.14 per month. For CARE customers, bills are going down approximately $10.37 per month. Typical electric customers use about 500 kilowatt hours of electricity per month.

Electric rates are decreasing because the costs for completed safety and reliability work coming out of rates exceed the costs for new investments authorized by PG&E’s regulators.

Restructured Electric Bill Debuts in March

The electric rate decrease also includes the new Base Services Charge. The California Public Utilities Commission directed the state’s investor-owned utilities to implement the charge under California Assembly Bill 205.

The Base Services Charge lowers the price of electricity for all residential customers. It is not a new fee and does not increase the revenue that PG&E collects from customers. It makes bills clearer and more transparent, shifts costs away from low-income customers and makes it more affordable to transition to more clean-powered electric appliances in the home.

The new bill separates some costs of service from the price per unit (kilowatt hour) of electricity use, including approved infrastructure and maintenance costs for connecting customers’ homes to the grid, energy efficiency and demand response programs, call center services and billing, all of which previously were included in electricity usage costs.

The Base Services Charge for customers enrolled in the California Alternative Rates for Energy (CARE) program is about $6 per month, while those in the Family Electric Rate Assistance (FERA) program and customers who live in Affordable Housing (Deed Restricted) pay approximately $12 monthly. For most customers, the Base Services Charge is about $24 per month.

The change aligns PG&E’s billing structure with California’s other large, regulated utilities and other utilities nationwide.
Each customer’s usage varies so the lower price per unit of electricity used may or may not lead to a lower total bill.

Natural Gas Rate Change

On March 1, 2026, PG&E natural gas rates increased slightly by 0.3%, compared to February rates. The increase is due to the recovery of authorized costs for safety and emergency response work that was completed for customers.

Typical residential natural gas bills are increasing by about $0.24 per month. A typical residential customer uses about 31 therms of energy monthly. For a typical residential CARE customer using about 26 therms of energy monthly, bills will increase by about $0.16 per month.

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