Report: Evaluating the Drivers of PG&E Electricity Rate Growth

California consistently ranks among the top three states with the highest residential electricity rates in the nation. Adjusted for inflation, PG&E’s average electricity rate increased by approximately 49% from 2019 to 2024, followed by a decrease of 16% from 2024 to 2026. Rate increases drive household electricity bills higher, worsening affordability challenges for families already burdened by high housing, healthcare, and food costs. High rates also threaten the state’s clean energy transition by eroding the financial advantages customers receive from electrification.

Although rising rates are largely driven by the costs of adapting to climate impacts like extreme wildfires, rising electricity bills may make the public more receptive to claims blaming California’s climate policies for high energy costs. This study makes clear that the largest driver of recent electricity cost, rate, and bill increases in California is responding to climate change (e.g., wildfire mitigation) rather than preempting it (e.g., clean energy procurement).

To investigate the drivers of rising electricity rates, Ava Community Energy analyzed PG&E costs and rates as published in state and federal regulatory filings. Read the full report for Ava’s key findings and recommendations for helping to address the identified challenges.