PG&E Bills Poised for Sharp Increase, Potentially Adding Hundreds of Dollars Annually for California Customers

Pacific Gas & Electric (PG&E) customers in California could face substantial increases in their annual energy bills, with some projections indicating hikes of up to $840 by 2030. These estimates come from the California Public Utilities Commission’s Public Advocates Office and signal potential financial strain for the approximately 16 million Californians served by the utility.

If the Public Advocates Office's forecast holds true, the typical household's bill could increase by $444 in 2027, and escalate to a total annual rise of around $840 by 2030 compared to current rates. These projected increases surpass the average $443 rise experienced by PG&E households in 2024.

Mary Flannelly, a spokeswoman for the Public Advocates Office, stated that the overall trend for utility bills is upward and expected to outpace inflation. "The overall trend is upward and will continue to outpace inflation," Flannelly said.

PG&E, however, disputes these projections. The utility company asserts that average residential customers with both gas and electric service will see their bills rise by approximately $128 next year. According to PG&E, cost-cutting measures and the conclusion of certain temporary wildfire programs will mitigate the full impact of the $1.2 billion the company is requesting, resulting in an average monthly increase of just over $10.

The company's own projections suggest annual bill increases of $119 in 2028, $126 in 2029, and $133 in 2030. PG&E spokesman Mike Gazda criticized the Public Advocates Office's estimates, attributing them to "simple math" that did not account for factors like expiring wildfire costs and the utility's spending control efforts. "Critics love to say PG&E [electricity] rates will go up, but we keep proving them wrong," Gazda stated.

Earlier assurances from PG&E CEO Patti Poppe, who in 2025 predicted flat bills, appear to have been accurate for the short term. Average residential bills for customers with both gas and electric service reportedly decreased from $295 in January 2025 to $285 in January 2026. This reduction was largely attributed to global factors influencing natural gas prices. Poppe had previously told the San Francisco Chronicle, "There is a world where bills can go down."

Despite fluctuations, Californians continue to face some of the highest utility costs nationwide. The California Public Utilities Commission is expected to make significant decisions regarding new rates beginning in 2027. IMAGE1: Electrical transmission towers at a PG&E substation in Vacaville, California, during a heatwave.