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PG&E Cuts Electric and Gas Rates for 2026, Fourth Reduction in Two Years

The utility says completed safety projects are allowing certain costs to fall off customer bills.

Overview

  • Starting Jan. 1, residential electric rates drop about 5%—roughly $7 a month for bundled customers—while natural gas rates fall about 3%, or about $1.
  • PG&E estimates a typical combined electric and gas bill of about $285 for January 2026, down from roughly $295 a year earlier.
  • With this latest move, residential electric rates are about 11% lower than in January 2024, even as federal forecasts call for rising national electricity prices.
  • Despite recent declines, the projected combined bill remains about 18% higher than early 2023 averages.
  • State regulators and an independent team are investigating a December substation fire in San Francisco that left roughly one-third of customers without power.