Pacific Gas and Electric Co. (PG&E) has submitted its general rate case (GRC) for the years 2027-2030 to California regulators, proposing energy system improvements aimed at fostering economic growth and enhancing climate resilience. This GRC marks PG&E’s smallest percentage increase request in a decade, attributed to cost reductions and savings passed on to customers. Over the past three years, PG&E has implemented new processes and technologies, achieving a reduction in operating and capital costs by approximately $2.5 billion.
If approved, PG&E anticipates that total combined gas and electric bills for residential customers in 2027 will remain flat compared to 2025 levels. Furthermore, if electric demand rises as projected by the California Energy Commission, bills could decrease due to more customers sharing the operational costs. PG&E also forecasts no electric rate increases in 2025 and predicts lower residential electric rates and average combined bills in 2026, as existing cost recovery mechanisms will expire.
CEO Patti Poppe emphasized PG&E’s commitment to providing safe, reliable, clean, and affordable energy. The GRC process allows stakeholder and public input before the California Public Utilities Commission makes a final decision, with any rate changes not expected until January 2027 at the earliest.
While the GRC proposal could raise bills by a maximum of 3.6% in 2027, overall bills are expected to be stable due to the removal of other costs in 2026. PG&E aims to stabilize bills through 2030, with potential savings arising from a $15 billion Department of Energy loan guarantee, improved credit ratings, and growth in energy demand from electric vehicles and data centers.
To enhance safety and reliability, PG&E’s proposal includes:
- Upgrading the grid to accommodate growth in electricity demand, including preparation for 3 million electric vehicles by 2030 and adding 20,000 new customer connections annually.
- Improving wildfire safety by replacing 760 miles of powerlines and placing 307 miles underground in high-risk areas, along with enhanced forecasting capabilities and tree trimming practices.
- Increasing clean energy delivery and resilience against extreme weather by investing in solar and battery storage, installing microgrids, and modernizing hydroelectric plants.
PG&E cautions that forward-looking statements are based on current expectations and assumptions, which may be subject to risks and uncertainties that could lead to actual results differing from those anticipated. Details on these risks are outlined in PG&E’s annual and quarterly reports available on their website and the
