Pacific Gas and Electric Company has announced changes to residential electric pricing that appear to lower customer bills beginning in 2026. While this announcement sounds like positive news many customers should look more closely at what is actually changing and how it may impact long term electricity costs.
PG&E provides electric and gas service to approximately 5.2 million households across Northern and Central California. With a customer base that large even small billing changes can generate significant revenue. The concern for many customers is that the new billing structure creates guaranteed income for the utility while setting the stage for higher costs later.
What Is Changing in 2026
Beginning January 1 2026 PG&E plans to reduce residential electric usage rates by about five percent. For the average household this equals roughly seven dollars per month in savings. A few months later PG&E will introduce a new base services charge that most residential customers will be required to pay each month regardless of how much electricity they use.
This base services charge is expected to be about twenty four dollars per month. It is separate from usage charges and is intended to cover infrastructure and service related costs that were previously built into the per kilowatt hour rate.
At first glance customers may see a slightly lower bill. However this change does not reduce overall costs. It shifts how PG&E collects revenue.
Why This Feels Like a Bait and Switch
A fixed base charge guarantees PG&E monthly income even if customers reduce usage. When that charge is applied across approximately 5.2 million households it results in more than 124 million dollars per month in fixed revenue. Over a year that equals nearly 1.5 billion dollars collected before usage charges are even considered.
Because this charge cannot be reduced through conservation solar production or energy efficiency improvements customers lose control over a growing portion of their bill. While usage rates may be temporarily lower PG&E still maintains a stable and predictable revenue stream.
What Happens Next
Utilities historically adjust usage rates during periods of higher demand such as summer heat waves or winter cold snaps. PG&E has raised rates multiple times in recent years to cover wildfire mitigation infrastructure upgrades and regulatory costs.
Once customers become accustomed to the new billing structure it becomes easier to raise the per kilowatt hour rate again. When that happens customers will be paying the fixed base charge plus higher usage rates which can lead to bills that exceed previous levels.
Why Marin and Sonoma Homes Feel This More
The impact of these changes will not be evenly felt across all households.
Many Marin County homes were built decades ago and later retrofitted with modern electric systems such as vehicle chargers heat pumps and induction cooking. These homes often have higher baseline usage even when residents are energy conscious. When seasonal rates increase the combination of higher usage and a fixed base charge can quickly outweigh any early savings.
Sonoma County homes often sit on larger properties and may include workshops agricultural buildings or accessory structures. These properties tend to use more electricity overall and experience sharper bill increases during extreme heat or cold. For these homeowners the base charge represents guaranteed monthly cost regardless of how carefully energy is managed.
Why This Matters Long Term
The key issue is not whether rates go down briefly but whether long term costs remain controlled. Fixed charges rarely decrease and often increase over time. Seasonal rate adjustments further raise bills during the months when electricity is needed the most.
What looks like a modest reduction today may simply be a temporary adjustment before higher rates return. For many households this structure could lead to record high annual electricity costs.
What Homeowners Can Do Now
While customers cannot control utility pricing they can control how prepared their home is.
Homes with older electrical panels inefficient layouts or unmanaged electric vehicle charging are more exposed to future increases. Understanding how your home uses electricity and where upgrades or adjustments could help is now more important than ever.
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An electrical and energy evaluation can help identify
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How much electricity your home actually uses
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Whether your electrical system is optimized
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How electric vehicles solar and batteries affect your bill
- Where future rate increases are most likely to impact you
Schedule an Electrical and Energy Evaluation
For Marin and Sonoma County homeowners the smartest step right now is understanding your home before rates rise again.
Grid Titans provides electrical and energy evaluations designed to help homeowners plan around PG&E rate changes. Whether you already have solar batteries or electric vehicles or are considering upgrades an evaluation provides clarity and a path forward.
If you are concerned about rising PG&E bills or want to understand how your home is affected schedule an evaluation with Grid Titans to take control of your energy planning.