Many Californians are expressing outrage after receiving news that their utility bills could soon see significant increases. A report from the California Public Utilities Commission’s Office of Public Advocacy indicates that the company’s 16 million customers may face rate hikes of up to $840 annually by 2030.
Currently, the average monthly cost for gas and electricity stands at $285—marking an 84% rise since 2016. If the projections come true, households could expect an additional 24.56% increase in prices over the next four years.
This information stands in contrast to claims made last year by CEO Patti Poppe, who had urged media to highlight that “billings are flat.”
Residents in northern California, already grappling with high insurance premiums, were particularly upset by the watchdog’s findings. For example, 76-year-old Bay Area resident Sally Hammons mentioned that she pays close to $9,000 annually for gas and electricity. “When I total my bills over the last year, it comes to $8,725 for PG&E,” she shared, adding that it averages about $727 each month—almost equivalent to her car payment.
Despite rarely using heat or air conditioning, Hammons noted her monthly bills fluctuated between $433 and $1,119. Rising utility costs are also affecting her small warehouse business, which incurs bills between $700 and $800 monthly just for basic usage. “It’s mostly just for lights and the computer,” she explained.
Despite her inquiries regarding the charges, PG&E maintained that her bills accurately reflect her energy use. “That doesn’t make sense,” she remarked, expressing disbelief at how they justify the rate increases, especially with a billing structure that includes both generation and delivery charges. “Delivery fees can sometimes be three times the cost of the actual electricity.”
According to forecasts from the Public Law Advocate’s Office, household bills could surge by $444 in 2027 alone, culminating in an annual increase of approximately $840 by 2030. This would even surpass past increases, like the $443 higher average PG&E households faced in 2024.
While PG&E disputes these estimates, claiming an average increase of about $128 for the next year, they have acknowledged further yearly rises in 2028 through 2030. A spokesperson criticized the public defender’s office for relying on simplified calculations that don’t account for wildfire costs and the company’s budgetary measures.
In Fresno, Rebecca Rangel expressed her frustration at having invested around $21,000 in solar panels, along with purchasing a backup battery. “It’s overwhelming,” she stated. With monthly costs exceeding $400 before switching to solar, she felt trapped by PG&E’s monopoly. “During summer, it’s unbearable outside. For some, paying for PG&E isn’t feasible, so they resort to cooling centers,” she added.
The California Public Utilities Commission is anticipated to address changes in utility rates starting in 2027. PG&E has been reached for additional comments.
