Electric rates for Pacific Gas and Electric Company (PG&E) residential customers dropped by 2.1% on September 1, 2025. According to the company, a typical customer using 500 kilowatt hours per month without discounts will see their monthly bill decrease by about $5.
PG&E attributed the reduction to the completion of several wildfire safety and emergency response projects, which allowed temporary costs to be removed from current rates. This change has resulted in lower bills for customers.
In October, residential electric customers will receive a $58.23 credit through the California Climate Credit program during their billing cycle. Eligible small business customers will also receive this credit. The California Climate Credit is part of state efforts to address climate change and is distributed twice each year by PG&E as part of California’s transition toward a low-carbon future.
Carla Peterman, PG&E executive vice president of corporate affairs and chief sustainability officer, stated: “While we continue making progress to stabilize electric prices for our customers, we know there is more work to do. Our focus is on making our system safer and more reliable for customers every day, while managing our costs to keep bills as low as possible.”
Over the past three years, PG&E reports saving approximately $2.5 billion in operating and capital costs through efficiency measures such as drone equipment inspections and bundling multiple electric projects together. The company says these savings have been used to accelerate safety and reliability improvements while offsetting related expenses.
PG&E’s approach contrasts with national trends. While its residential electric rates are declining this September and are expected to drop again in 2026, projections from the U.S. Energy Information Administration indicate that average national electricity prices are likely to rise through 2026, surpassing forecasted inflation levels (https://www.eia.gov/outlooks/steo/report/electricity.php).
The September rate adjustment also affects natural gas prices, with a decrease of 0.4%. For a typical residential customer using 31 therms per month, this translates into savings of about $0.39 per month.
PG&E continues to offer tools and financial assistance programs aimed at helping customers save energy and reduce costs.
Pacific Gas and Electric Company serves over sixteen million people across Northern and Central California.
More information can be found at https://www.pge.com/ or https://www.pge.com/news.
