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

Pacific Gas and Electric Company (PG&E) residential customers saw a 2.1 percent decrease in electric rates beginning September 1. For the typical household using 500 kilowatt hours per month without discounts, this translates to about five dollars in monthly savings.

The decrease is tied to the completion of several wildfire safety and emergency response projects, which removed temporary costs from rates. In addition, customers will benefit from the California Climate Credit, which provides a $58.23 bill credit during the October billing cycle.

PG&E has reduced electric rates three times in the past 15 months, offsetting increases during that same period. Another rate reduction is expected in 2026. The company said it is working to stabilize prices through cost savings and lower financing expenses. Over the past three years, PG&E reports saving about $2.5 billion in operating and capital costs by adopting new technologies, streamlining processes, and consolidating projects. These savings have helped accelerate safety improvements and offset some expenses.

While PG&E customers will see rates decline again in the future, national trends are moving in the opposite direction. The U.S. Energy Information Administration projects that average electric prices across the country will continue rising through 2026, outpacing inflation.

In addition to lower electric bills, gas rates also decreased by 0.4 percent this month, saving the average residential customer about 39 cents per month.

PG&E customers will continue receiving the California Climate Credit twice a year, in spring and fall. The program is part of California’s efforts to combat climate change and provide financial relief to households and small businesses during the state’s transition to a low-carbon future.

PG&E also offers a variety of programs to help customers manage energy costs. These include Budget Billing, which spreads energy payments evenly throughout the year, and online tools like the Home Energy Checkup and Savings Finder, which provide customized tips and financial assistance options. For income-qualified customers, additional programs are available, such as the California Alternate Rates for Energy Program, the Family Electric Rate Assistance Program, and the federally funded Low Income Energy Assistance Program, which can provide up to $1,500 in one-time bill support.