PG&E Gas Rate Hike to Begin in 2025: What You Need to Know

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Pacific Gas and Electric Company (PG&E) has announced that its gas rates will see a significant increase starting January 1, 2025, affecting millions of customers across California.

The move, which comes as part of PG&E’s ongoing efforts to invest in safety and infrastructure upgrades, will result in an average increase of $9 per month for residential gas bills, marking an 8.6% rise compared to December 2024 rates.

The rate hike is primarily intended to fund critical investments in PG&E’s natural gas system, including the replacement of aging pipelines, enhanced leak detection technologies, and improved system inspections to ensure greater reliability and safety.

These upgrades are part of PG&E’s broader commitment to modernizing its infrastructure and reducing risks to customers.

Impact on Customers and Bill Adjustments

While gas customers will see an increase in their monthly bills, the overall impact may be somewhat mitigated for many PG&E customers due to a decrease in electricity rates.

Starting January 2025, electricity rates for most residential customers are expected to drop by about 4%, translating to an average monthly saving of $11.

This reduction in electricity costs is expected to offset the gas rate increase, leaving most customers with a relatively stable overall bill compared to the previous year.

For those who may find it difficult to absorb the rate hike, PG&E has introduced several programs aimed at helping customers manage their energy costs.

The California Alternate Rates for Energy (CARE) program, for instance, offers a discount of 20% or more on both gas and electricity bills for eligible low-income customers. Additionally, PG&E continues to promote energy-saving initiatives and rebates that can help reduce overall energy usage and, in turn, lower bills.

Why the Increase?

The rate hike comes at a time when PG&E is facing increasing regulatory scrutiny, especially after a series of devastating wildfires caused by its equipment.

The company has been under pressure to address the underlying safety and maintenance issues that have contributed to the disasters, and the rate hike is seen as a necessary step in meeting those regulatory requirements and avoiding future risks.

Furthermore, PG&E has highlighted the importance of improving the resilience of its natural gas system, especially with California’s growing demand for energy amid a changing climate.

The company emphasized that modernizing infrastructure and improving safety protocols are essential for reducing the likelihood of gas leaks, outages, and other system failures.

Managing the Rate Hike

As part of its effort to assist customers, PG&E is encouraging residents to take advantage of energy efficiency programs designed to reduce consumption and lower costs.

These programs include free home energy assessments, rebates for energy-efficient appliances, and resources to help households conserve energy during peak usage periods.

Looking Ahead

Despite the rate hike, PG&E is also committed to providing customers with ways to manage their energy costs in the coming years.

The company has promised to continue offering energy-saving programs and financial assistance to qualifying households. Additionally, PG&E is focusing on enhancing its communication with customers to ensure they are well-informed and prepared for any changes in their energy bills.

For more information on the rate changes, available assistance programs, and tips for reducing your energy consumption, PG&E customers are encouraged to visit the company’s website or contact customer service directly.

As California enters 2025, PG&E customers will need to plan accordingly for these adjustments, but with continued support from the utility company and state-run programs, the impact of the gas rate increase may be lessened for many.

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