PG&E asks regulators for another rate increase, but says bills will 'remain flat'

PG&E

Pacific Gas and Electric Company is asking California regulators to increase rates for its customers starting in 2027.

PG&E proposed an annual average rate increase of 3.4% or 3.5% for customers in a Thursday 2027-2030 General Rate Case filing with the California Public Utilities Commission.

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The utility company estimates that, compared to rates in May 2025, its proposal would mean an increase of $128 annually in 2027, then an increase of $119 in 2028, another $126 in 2029 and an additional $133 in 2030 for the average residential customer.

A look at expected bills.

For those with a low-income CARE discount, it would be an increase of $80 annually in 2027, another $76 in 2028, an additional $80 in 2029 and finally $85 in 2030.

The company is required to submit a multi-year cost proposal to the CPUC every four years. The CPUC is then supposed to review the utility’s revenues and expenses to determine reasonable rates for customers.

Despite PG&E requesting the rate increase, the company said it actually expects combined gas and electric bills in 2027 to be about the same as 2025 for the average customer. It said that is because some costs built into rates now will expire in 2026, bringing bills down and offsetting the potential increase the year after.

Proposed rates

The utility company said in a release that the new request is also the smallest percentage increase it has asked for in a decade, made possible by $2.5 billion in reduced operating and capital costs.

• Coming up on the KCRA 3 News at 6 p.m., CEO Patti Poppe answers KCRA 3 Investigates’ questions about the rate hike in an interview.

Still, this comes after the CPUC approved six rate increases for PG&E in 2024, a year in which PG&E reported a record $2.47 billion in profits. That was an increase from an earlier record the investor-owned utility set in 2023.

In March, PG&E asked regulators for another increase to residential customer bills by about $5.50 per month, starting as soon as Jan. 1, 2026. That increase came from a Cost of Capital filing that argued PG&E needed the money to “adequately compensate investors” amid risks in the business environment.

PG&E told KCRA 3 that even with the Cost of Capital filing increase and the new request bills in 2027 would be expected to be about the same as 2025. The company said it aims to stabilize bills through 2030.

KCRA 3 previously reported in February that California Democratic State Sen. Aisha Wahab filed a proposal, the Investor-Owned Utilities Accountability Act, that would prohibit an investor-owned utility company like PG&E from proposing more than one rate increase per year.

PG&E said in its release that it does not forecast another electric rate increase in 2025 and projects residential and electric rates and average combined bills to be lower in 2026.

If approved, customer rates would not be affected until January 2027 at the earliest, according to PG&E.

“This proposal is another step in our journey of progress. We’re not done and will continue to do more to improve our service at a lower cost,” CEO Patti Poppe said in a statement.

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