PG&E’s 2024 Rate Increases Explained
Last updated: October 2024
On October 1, 2024 PG&E implemented its fourth rate increase of 2024 for all customers, including customers of Ava Community Energy. The latest increase is only for PG&E delivery service, not for Ava’s portion of your electricity bill (electricity generation).
As an Ava customer, you still pay PG&E for electricity delivery. We’ve assembled this information to help you understand the impact of PG&E’s rate increases on your energy bill.
Why is PG&E raising rates?
According to the California Public Utilities Commission, the top drivers of PG&E’s rate increases are inflation and significant investments in wildfire mitigation projects. PG&E also cites unprecedented weather events and new legislation as key reasons for rate increases. Read more about how PG&E sets rates.
Why do PG&E rate increases impact my bill when I am on Ava service?
Electricity service has two components: generation (power plants) and delivery (poles and wires). Ava provides only the generation portion of your electricity service, replacing what PG&E used to charge when they generated your electricity. PG&E continues to deliver the electricity, maintain the lines and wires that distribute electricity to your home or business, and send your bill. Rate increases for PG&E delivery services impact Ava customers and non-Ava customers equally.
However, if PG&E increases or decreases its generation rates, Ava’s rate increases or decreases by the same percentage. That means you’ll always be saving 5% on our Bright Choice service, or paying ¼ cent more per kWh if you’re on Renewable 100.
How much is my bill changing?
According to PG&E, the most recent change is an increase of approximately 3.1% beginning October 1, 2024, with the typical bill increasing by about $6.43 per month.
This is on top of other significant PG&E rate changes this year:
- On January 1, 2024, PG&E rates increased by about 13% across both generation and delivery. For the average residential customer, this came out to about $33 per month.
- On March 1, 2024, PG&E increased delivery rates by 0.3%, or about $0.56 per month.
- On April 1, 2024, PG&E rates increased by 1.4%, or about $3.13 per month.
- On July 1, 2024, PG&E temporarily decreased rates across both generation and delivery by 9.3%. In response, Ava decreased our rates by an average of 12%.
- Natural gas prices have also increased this year. On September 1, 2024, PG&E implemented an 8.3% increase in natural gas rates, amounting to about $5.78 per month for the average household.
In total, PG&E estimates a bill increase of approximately 12.8% in 2024, or about $32.50 per month for the average household.
These rates are expected to stabilize through 2025 and 2026. According to PG&E, rates will increase 1.6% in 2025 and decrease by 2.8% 2026. The typical bill will increase by about $4.50 in 2025, and decrease by almost $8.00 in 2026.
When will rates increase?
The rate increase went into effect on October 1, 2024, so you might not notice the impact until November. Your October bill will likely contain some September electricity usage billed at the older rate.
Residential electric customers will also see a $55.17 California Climate Credit on their October bills. The California Climate Credit, distributed twice a year by PG&E as directed by the CPUC, is part of the state’s efforts to fight climate change.
What is Ava Community Energy doing to help reduce customer bills?
As a not-for-profit agency, Ava is committed to generating energy at competitive, stable rates, and returning any excess revenue to the communities we serve. We offer two service plans: Renewable 100, which consists of 100% wind and solar power priced at ¼ cent more than PG&E rates; and Bright Choice, which is over 50% renewable energy at 5% below PG&E rates. Our Bright Choice service has saved our customers over $120 million since we launched our agency in 2018.
We are continuing to invest in building local renewable power plants so that we can always provide cleaner electricity at lower rates than PG&E.
What can I do to help lower my bill?
- Use electricity when it is cheapest. When possible, don’t use major appliances between the hours of 4:00 p.m. and 9:00 p.m. — that is when electricity is most expensive.
- If you have an electric vehicle (EV), make sure you’re on a rate schedule specifically designed for EVs. Learn more about driving electric (it’s still cheaper to charge your EV than to pay for gas!).
- Check if you qualify for CARE or FERA rates.
- Choose Ava’s Bright Choice service and save 5% compared to what you would have paid PG&E.
- Turn off lights and unplug appliances when they’re not in use.