7 min read • Updated October 2026 • By the CliQ Team — the team that created Blink
Are PG&E rates going up? Not in 2026. PG&E cut electric rates twice this year, on January 1 and March 1, and a typical bill for 500 kilowatt-hours fell from $219.72 to $203.54 a month for customers not on a discount, according to PG&E. Bills still feel high because they are. California's average residential rate was 33.61 cents per kilowatt-hour in July 2026, 84% above the US average of 18.31 cents, according to the EIA. PG&E's residential rates are up 69% since 2016, according to the CPUC's Public Advocates Office. Increases are back on the table for 2027.
Nearly 1 in 4 PG&E customers is behind on their bill. If that's you, the CARE discount takes at least 35% off electricity for a family of four earning up to $66,000. Here's why PG&E bills run so high, what changed this year, what's coming, how to get help, and the part of the bill you control.
Why PG&E Bills Run So High
The Public Advocates Office, the CPUC's ratepayer advocate, names three main drivers of California's rate increases over the past decade:
- Wildfire costs. That covers both preventing fires (trimming trees, hardening lines, burying them underground) and paying for fires utility equipment has caused. In January 2026, wildfire-related costs made up $3.97 billion of what PG&E collects from customers, or 19% of the total, up from 15% in January 2023.
- Transmission and distribution. The poles, wires, and substations that move power to your house, and the upgrades to replace and expand them.
- Rooftop solar incentives. Under net energy metering, customers with solar panels pay less toward the shared grid, and the other customers pick up more of it.
Wildfire costs are still the main fight. In September, after the state legislature let a wildfire liability bill (SB 492) die, PG&E said it would defer about $2 billion of planned 2027 spending. KTVU in Oakland covered both sides.
Video by KTVU FOX 2 San Francisco via YouTube, September 2026. Not affiliated with CliQ.
PG&E's CEO, Patti Poppe, said California's wildfire liability rules make borrowing more expensive, which raises costs for customers and investors alike. Mark Toney of The Utility Reform Network (TURN), a ratepayer group, said the priority should be keeping the state's Wildfire Fund from running out, and that PG&E should use insulated overhead lines instead of burying lines at about $4 million a mile.
The short version: most of a PG&E bill pays for the grid, not the electricity itself, and wildfire costs are the fastest-growing part.
What Changed in 2026, and What's Coming in 2027
Two rate cuts in 2026
PG&E lowered rates on January 1, mostly because its cost of buying power came in lower, and again on March 1, when charges for past wildfire work ended. Here's what that did for a typical customer not on a discount:
| Rates in effect | Average rate (non-CARE) | Typical bill, 500 kWh |
|---|---|---|
| September 1, 2025 | 44.36¢ per kWh | $219.72 |
| January 1, 2026 | 41.46¢ per kWh | $208.68 |
| March 1, 2026 | 40.60¢ per kWh | $203.54 |
ABC30 in Fresno covered the January cut, and why Central Valley households, which run more air conditioning, saw a bigger drop.
Video by ABC30 Action News via YouTube, December 2025. Not affiliated with CliQ.
The new Base Services Charge
Since March 2026, PG&E bills include a fixed monthly Base Services Charge: about $24 for most customers, $12 for FERA customers and deed-restricted affordable housing, and $6 for CARE customers. In exchange, the price per kilowatt-hour went down. PG&E says it isn't a new fee, because these costs used to be built into the per-kWh price. Whether your total bill goes up or down depends on how much electricity you use.
2027: PG&E's rate request
PG&E's 2027 general rate case asks for 8% more revenue in 2027, and 6.1% more each year from 2028 to 2030, to pay for grid upgrades, wildfire work, and new demand. PG&E says a typical combined gas and electric bill would rise about 3.6% in 2027 compared with 2025 if the plan is approved as filed. The Public Advocates Office says that once PG&E's other pending requests are counted, the average bill could rise about 16% in 2027 and 30% by 2030. ABC10 covered a CPUC public hearing on the plan.
Video by ABC10 via YouTube, November 2025. Not affiliated with CliQ.
The CPUC's tentative date for a decision is May 2027. A proposed decision now before the commission would make whatever it approves count from January 1, 2027, even if the vote comes later. For how California compares with other states, see which states have the highest electricity rates.
PG&E CARE Program and Other Help Paying Your Bill
About 1.36 million PG&E customers, 24%, were behind on their bills in May 2026, owing $572 on average, according to the Public Advocates Office. These are the main programs, from the CPUC, PG&E, and the state.
CARE: at least 35% off electricity, 20% off gas
The California Alternate Rates for Energy program is the biggest discount on the bill. CARE customers also pay the lowest Base Services Charge, about $6 a month. For June 1, 2026, through May 31, 2027, the income limit is $43,280 for a household of one or two, $54,640 for three, $66,000 for four, and $11,360 more for each additional person. You also qualify if anyone in the household gets Medi-Cal, CalFresh, WIC, SSI, CalWORKs, LIHEAP, or free school lunch. Apply at pge.com/care.
FERA: 18% off electricity, for incomes just above CARE
The Family Electric Rate Assistance program covers households earning a bit too much for CARE: up to $54,100 for a household of one or two, $68,300 for three, and $82,500 for four. It's the same application as CARE, and PG&E checks you for FERA automatically if you don't qualify for CARE.
Arrearage Management Plan: up to $8,000 forgiven
If you're on CARE or FERA and behind on your bill, PG&E's Arrearage Management Plan forgives up to $8,000 of past-due balance as you make on-time payments.
LIHEAP and REACH: one-time help with a past-due bill
LIHEAP is run by the state Department of Community Services and Development through local agencies, for households earning up to 60% of state median income. It's a one-time payment toward heating or cooling costs or a past-due bill. Find your local agency at csd.ca.gov or call (866) 675-6623. If you've received a disconnection notice, PG&E's REACH program can put up to $800 toward the past-due amount.
Shutoff protections in extreme weather
Under CPUC rules, PG&E can't disconnect residential electric service for nonpayment when temperatures below 32°F or above 90°F are forecast within the next 72 hours. The CPUC lowered the heat trigger from 100°F to 90°F in July 2026. If you're falling behind, ask PG&E for a payment plan before a shutoff notice arrives, and if someone at home depends on powered medical equipment, apply for the Medical Baseline program.
The Part You Control: How Much You Use
The CPUC sets PG&E's rates. How much you use gets set at home.
Start with heating and cooling. They account for more than half of the energy used in a typical US home, according to the EIA. The Department of Energy says turning the thermostat back 7 to 10 degrees for 8 hours a day, like overnight or while the house is empty, saves up to 10% a year on heating and cooling, and that the savings are greater in milder climates, which describes most of PG&E's territory. The same idea works for air conditioning in a Central Valley summer: let the house run warmer while you're out. (DOE does caution that deep setbacks aren't a good fit for heat pumps.)
What that's worth: about $80 to $100 a year for the average US household. The new Base Services Charge doesn't change the math much. It's a fixed amount, so the part of the bill you can cut is still the part you use.
The catch is doing it every day. Nobody remembers to change the thermostat every night and every morning, all year. A schedule does it for you. For other reasons a bill runs high, see why your electric bill is so high, and check what a normal electric bill looks like.
That's where CliQ comes in. It's a $69.99 smart thermostat that runs the setback for you. You set four temperatures for morning, day, evening, and night. Away mode adjusts the temperature when you leave and brings it back when you're home, including automatically based on your phone's location. The app is free, with no subscription.
It also fits older California homes. Plenty of them have a thermostat with no C-wire, the constant-power wire most smart thermostats need. CliQ doesn't need one. It works with most 24V systems, including gas furnaces, central air conditioning, and single-stage heat pumps. It doesn't control electric baseboard or wall heaters, or ductless mini-splits. If your old thermostat is a compatible Honeywell two-wire model, CliQ clicks onto the existing wall plate with no tools. Otherwise it's a screwdriver and a few minutes.
The CPUC sets the rate. Your thermostat sets how much of it you pay for.
See the CliQ Smart Thermostat →$69.99 MSRP. No C-wire required.
Frequently Asked Questions
Are PG&E rates going up in 2026?
No. PG&E lowered electric rates on January 1 and March 1, 2026. The average residential rate for customers not on a discount went from 44.36 cents per kilowatt-hour in September 2025 to 40.60 cents in March 2026, and a typical 500 kWh bill fell from $219.72 to $203.54, according to PG&E.
Why are PG&E rates so high?
The CPUC's Public Advocates Office names three main drivers: wildfire prevention and liability costs, transmission and distribution investments, and rooftop solar incentives. Wildfire-related costs alone were $3.97 billion, 19% of what PG&E collects from customers, in January 2026. PG&E's residential rates are up 69% since 2016.
What is the PG&E Base Services Charge?
It's a fixed monthly charge that started in March 2026: about $24 for most customers, $12 for FERA customers and deed-restricted affordable housing, and $6 for CARE customers. The per-kilowatt-hour price went down at the same time. PG&E says these costs used to be built into the per-kWh price, so whether your total bill rises or falls depends on how much electricity you use.
Will PG&E rates go up in 2027?
Possibly. PG&E's 2027 rate case asks for 8% more revenue in 2027. PG&E says a typical combined gas and electric bill would rise about 3.6% compared with 2025 if approved as filed. The Public Advocates Office estimates the average bill could rise about 16% in 2027 once PG&E's other pending requests are included. The CPUC's tentative decision date is May 2027.
What are the PG&E CARE program income limits?
For June 1, 2026, through May 31, 2027, the CARE income limit is $43,280 for a household of one or two, $54,640 for three, $66,000 for four, and $11,360 for each additional person. You also qualify if anyone in the household gets Medi-Cal, CalFresh, WIC, SSI, CalWORKs, LIHEAP, or free school lunch.
What's the difference between CARE and FERA?
CARE takes at least 35% off electricity and 20% off gas for households up to 200% of the federal poverty guideline ($66,000 for a family of four). FERA takes 18% off electricity, with no gas discount, for households just above that, up to $82,500 for a family of four. It's one application for both.
Prices verified as of October 2026. Check retailer links for current pricing.
Sources
Pacific Gas and Electric — Electric Rate Advisory, effective January 1, 2026 (Advice Letter 7797-E) — pge.com
Pacific Gas and Electric — Electric Rate Advisory, effective March 1, 2026 (Advice Letter 7846-E) — pge.com
Pacific Gas and Electric — Base Services Charge — pge.com
CPUC Public Advocates Office — Q2 2026 Electric Rates Report, July 2026 — publicadvocates.cpuc.ca.gov
CPUC Public Advocates Office — The Full Bill Impact of PG&E's Expected Rate Requests, March 2026 (updated June 2026) — publicadvocates.cpuc.ca.gov
CPUC — Fact Sheet, PG&E 2027 General Rate Case (A.25-05-009) — cpuc.ca.gov
CPUC — Proposed Decision on PG&E's motion for a January 1, 2027 effective date, A.25-05-009, August 4, 2026 — docs.cpuc.ca.gov
ABC10 — PG&E defers $2 billion in planned 2027 investment after liability bill fails, September 2026 — abc10.com
CPUC — CARE/FERA Program, income guidelines June 1, 2026 – May 31, 2027 — cpuc.ca.gov
Pacific Gas and Electric — Financial assistance programs — pge.com
California Department of Community Services and Development — Paying My Energy Bills (LIHEAP) and 2026 LIHEAP State Plan — csd.ca.gov
CPUC — Resolution E-5468, disconnection temperature thresholds, July 16, 2026 — docs.cpuc.ca.gov
US Energy Information Administration — Electric Power Monthly, Table 5.6.A, average residential price by state — eia.gov
US Department of Energy — Programmable Thermostats — energy.gov
US Energy Information Administration — Residential Energy Consumption Survey 2020, end-use consumption — eia.gov
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