Customers of Pacific Gas and Electric Co. can expect to see some meager savings in the new year as the California utility decreases rates for power and natural gas, the company said. In a Tuesday, Dec. 30, news release, PG&E said the rate cuts go into effect Jan. 1. It’s the fourth time the company has cut rates for customers in the last two years. PG&E said this most recent round of cuts will save average residential electric customers $7 per month and natural gas customers $1.
How much are electric rates dropping?
Residential electric rates will fall by 5% for customers who get both electricity supply and delivery service from PG&E compared to current rates, the company said.
In combination with earlier cuts, that’s an 11% decrease from January 2024 rates, a monthly savings of about $20 for typical residential customers.
Electrical rates are dropping because PG&E has completed safety and reliability projects paid for with rates and because the price the utility pays for power is expected to fall.
What about natural gas customers?
Also on Jan. 1, PG&E will decrease natural gas rates by 3%, which will reduce typical residential gas bills by about $1 a month.
“Decreases are due to certain costs coming out of rates and lower greenhouse gas compliance costs,” PG&E said.
The company serves about 16 million people across 70,000 square miles in Northern and Central California. The utility serves customers from Bakersfield to the Oregon border, including San Francisco, Sacramento, Fresno, Modesto, Oakland, Stockton, Santa Rosa, Redding, Chico, Oroville and Eureka.
