PG&E Monthly Bills Dropping for Electricity Customers

Utility expects lower overall rates in 2026 compared to 2025, but bills still higher than a few years ago

Published on Mar. 2, 2026

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PG&E has announced another reduction in electricity rates for its customers, the fifth such cut in the past two years. The utility says typical residential electric bills will decrease by around $5 per month, while customers in the subsidized CARE program will see a $10 monthly reduction. PG&E expects overall electric rates to be lower in 2026 compared to 2025, though bills remain markedly higher than a few years ago.

Why it matters

The decreases in PG&E's electricity rates provide some relief to customers who have faced steep price hikes in recent years, driven by factors like wildfire-related expenses. However, bills are still significantly higher than pre-2024 levels, underscoring the ongoing challenges for consumers in the region.

The details

PG&E reduced residential electric rates by 1.8% on March 1 compared to February, with an 8.3% decrease for CARE program customers. This means the average non-subsidized customer will see a monthly bill reduction of around $5, while CARE customers will save about $10 per month. PG&E says the decreases are due to one-time costs, many related to wildfires, moving out of the rate base.

  • PG&E cut electric rates further on March 1, 2026.
  • In January 2026, residential customers were paying approximately $285 per month for combined electricity and gas, down $10 from January 2025.
  • Starting in January 2026, the average electric bill was $203 per month, down $10 from January 2025.

The players

PG&E

An electric and natural gas utility company that serves customers in Northern and Central California.

Patricia Poppe

The CEO of PG&E who stated the company is delivering on its promise to lower prices for customers.

California Alternate Rates for Energy (CARE) program

A subsidized utility service program in California that provides discounted rates to income-eligible customers.

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What they’re saying

“We are delivering on our promise to lower prices for our customers again, even as national prices are expected to rise.”

— Patricia Poppe, CEO, PG&E (Mercury News)

“We see a future where customers' bills can start to come down.”

— Patricia Poppe (Mercury News)

What’s next

Based on current information, PG&E expects typical residential electric rates to be lower overall in 2026 than in 2025, though the company did not provide specific projections for future rate changes.

The takeaway

While the recent decreases in PG&E's electricity rates provide some relief to customers, bills remain significantly higher than they were just a few years ago. The utility's efforts to lower costs are a positive step, but the region's consumers continue to face elevated energy expenses compared to the past.