OAKLAND – After years of rising monthly bills, PG&E customers will be able to ring in 2026 with the prospect of lower charges for their electricity and gas services, the investor-owned utility disclosed in a new regulatory filing.
The typical residential customer who receives combined electric and natural gas services from PG&E can expect an average charge of $285 a month starting with the January 2026 billing cycle, according to information provided by the company.
That January 2026 average bill would be $10 less than the average $295 a month that typical residential customers paid in January 2025, according to PG&E estimates. This works out to a 3.4% decrease for the average combined bill.
Despite the expected decline, the anticipated bills will still be far above where average PG&E bills were in early 2023, this news organization’s survey of PG&E bills shows.
“We know how important stable and predictable bills are for families and businesses,” PG&E Chief Executive Officer Patricia Poppe said. “That’s why we are lowering rates, even as national prices are expected to rise.”
Starting in January 2026, the average electric bill is expected to be $203 a month, down $10 from January 2025, or 3.8% less. The average gas bill is slated to be $82, a decline of $2 from a year ago, or down 2.4%.
In January 2025, the combined average bill for a typical residential customer rose $1 from the January 2024 average bill of $294.
The prospect of lower bills contrasts sharply with rising charges that have affected PG&E customers in recent years.
The $294 a month that residential customers paid at the outset of 2024 was 22% higher than the $241 a month PG&E ratepayers had to cough up in January 2023.
Still, the $285.10 average monthly bill that’s anticipated in January 2026 for combined services would be 18.3% higher than the similarly calculated average bill in early 2023.
The declining PG&E bills support a prediction Poppe made in an interview with this news organization in April 2024, stating that bills would stabilize and eventually head lower.
“We see a future where customers’ bills can start to come down,” Poppe said.
During a conference call Tuesday to discuss changes, PG&E executives said the reduced bills have come about due to certain costs being removed from the rate base, including expenses related to wildfire mitigation.
The declining PG&E bills contrast with a forecast from the U.S. Energy Information Administration that national electric prices are poised to rise nearly 10% between 2024 and 2026.
“We’ve reduced electric rates multiple times since 2024,” Poppe said. “We remain committed to finding new ways to save and pass those savings on to our customers.”
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