PG&E Bills Decline as Costs from Wildfires Recede

OAKLAND, California — PG&E bills will decrease this month as costs related to wildfires start to fade from the utility’s rate base.

Residential electricity costs will drop by an average of $5 for customers using 500 kilowatt hours a month, marking a 2.1% decrease. Gas bills are also set to decline by 39 cents per month for typical customers using 31 therms, equating to a 0.4% reduction.

“These reduced bills are significant because no more rate changes are expected in 2025,” said PG&E spokesperson Mike Gazda. “Bills are expected to go down in 2026.”

Electric rates have dropped three times in the past 15 months, according to PG&E. However, consumer advocacy group TURN criticized the timing, claiming that past bill increases were far too steep, with customers previously facing over 20% annual hikes due to state Public Utilities Commission approvals.

“PG&E does not deserve credit for a temporary reduction in monthly bills, which is the result of customers finally paying off some of the billions in corporate overspending,” said Mark Toney, TURN’s executive director.

The average bill for PG&E customers who received combined electric and gas services was $295 in January 2025, a slight increase from $294 in January 2024. This came after a significant rise of 22% from $241 in January 2023.

To further reduce costs, PG&E seeks to explore alternative insurance sources and recently secured a federal energy loan guarantee. Customers are expected to receive a bill credit in October, with a reduction of $58.23 as part of the California Climate Credit program.

While PG&E reports stable or decreasing monthly bills, nationwide trends suggest otherwise, with the U.S. Energy Information Administration predicting future double-digit price increases. Factors like the tech industry’s demand for data centers are contributing to rising electricity costs across the country.

PG&E plans to continue its cost-reduction efforts, recently achieving around $2.5 billion in savings through new technologies and optimizing operations. The utility has also begun reducing its real estate footprint, including selling its San Francisco headquarters and moving to a more cost-effective office tower in downtown Oakland, projected to save $400 million over five years.

“While we continue making progress to stabilize electric prices for our customers, we know there is more work to do,” said PG&E Chief Sustainability Officer Carla Peterman.