PG&E Rates Up 19.8% for Tier 3 Customers

Reading the headlines, one would think PG&E rates went up anywhere for 1.5% to 3.4% in January. But if you take a close look at your bill, you will see that rates went up a whole lot more than that for most residential customers.

Most residences are on PG&E’s E-1 rate. In the chart below you will see the rate you paid on January 1, 2019 and what you are now paying as of January 1, 2020. So why do the headlines say different? The answer is that PG&E averages their rate increases over the entirety of their customer base including businesses, industrial users and others. Those averages are what get reported in the media.

So, what is the real effect on you, the average residential user? Look below to find out. In some cases, your electricity cost went up as much as 19.8% year over year compared to January 2019. And more is coming.

PG&E has more rate increase applications in front of the Public Utility Commission as we speak.

Nothing in your daily life compares to the inflation now seen in electricity rates.

January 1, 2019

Tier 1 21.2 cents/kwh

Tier 2 28.0 cents/ kwh

Tier 3 43.4 cents/kwh

March 1, 2019

Tier 1 21.8 cents/kwh

Tier 2 27.4 cents/kwh

Tier 3 48.0 cents/kwh

January 1, 2020

Tier 1 23.6 cents per kwh

Tier 2 29.7 cents/kwh

Tier 3 52.0 cents/kwh

Annual Increase from January 1, 2019 to January 1, 2020

Tier 1 = 11.3%

Tier 2 = 6.1%

Tier 3 = 19.8%

Tier 1, also called baseline, is for the initial chunk of electricity you buy from PG&E each month. As your monthly consumption goes up, the amount you pay per kwh also goes up.

Tier 2 applies to electricity that you purchase between 100% and 400% of baseline.

Tier 3 applies to electricity purchased in excess of 400% of baseline.

Current PG&E E-1 residential rates can be found at:

Historic E-1 rates can be found at

Applications for rate increases yet to come can be found at:

If you want to get off the PG&E treadmill, the time has never been better to go solar. Give us a call today to learn more! (530) 798-4722


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