Rate Proposal Will Power California's Growth While Stabilizing Customer Bills

Dear PG&E Customers,

PG&E is on a journey to transform our company and improve how we serve you, at a lower cost. My coworkers and I want what you want: safe, reliable, clean and affordable energy for all. This is also a personal commitment I strive for every day.

Back in January, I wrote to say that we hear you: Your bills are too high. Today, I want to share an update on how we are stabilizing your energy bills. Since January 2024, typical residential combined bills have stabilized, and we expect them to go down in 2026.

On May 15, PG&E submitted our cost proposal for 2027 through 2030 to California regulators, also known as our General Rate Case. The proposal includes our smallest General Rate Case percentage increase request in a decade. This was made possible due to the $2.5 billion we’ve saved in operating and capital costs over the past three years. 

We see this proposal as a major milestone in our turnaround journey. We are interrupting a pattern of double-digit percentage increase requests. We will continue our efforts to keep costs down by improving how we work and using technology to improve our business. 

Based on what we know today, if the proposal is approved in full, we expect residential bills in 2027 to be the same as 2025 bills. That’s because cost recovery currently in rates will expire and be removed from rates, helping to offset proposed increases including from the 2027 to 2030 General Rate Case. If energy demand increases — as the California Energy Commission forecasts — bills can go down. That’s because the costs of operating our energy system would be shared by more customers. 

The work we propose would build on the significant progress our teams have made in recent years, including:

• Typical residential combined bills have stabilized since January 2024, and we expect them to go down in 2026. 

• A 98% reduction in wildfire risk in areas where we've moved powerlines underground.

• A 600% increase in pole and tower inspections using drones and advanced imaging.

• A 40% increase in new customers connected to the grid in 2024 compared to 2023, at a lower unit cost.

• More than 144 miles of natural gas distribution pipelines replaced in 2024, reducing risk and costs.

• 98% greenhouse-gas-free electricity delivered in 2024.

• No statewide calls for emergency energy conservation in 2024, despite record-breaking heat, thanks to increased renewables and batteries.

For 2027 through 2030, we aim to deliver customer bill stability while improving safety and reliability. Our proposal focuses on:

• Modernizing the grid to meet growing electricity demand.

• Increasing wildfire safety by replacing and undergrounding powerlines, installing more weather stations and improving tree trimming.

• Increasing clean energy delivery and resilience to extreme weather.

• Strengthening the gas system to improve safety and air quality.

I want to take a moment to address comments we hear linking our profits to higher energy rates. Our profits are limited by our regulator and don’t depend on how much energy we sell. We reinvest 97% of our profits back into our business, which helps keep rates flat. As a publicly traded company, our performance is transparent. A financially healthy PG&E means lower borrowing and interest costs we can pass along to you.

The open, transparent regulatory process that follows our General Rate Case submission will involve critical decisions about our work, safety, reliability and costs. We'll continue to stand for your safety and prosperity, and we encourage you to participate in the process. 

This proposal is another step in our journey of progress. We’re not done and will continue to do more to improve our service at a lower cost. 

With love,

Patti Poppe

CEO of PG&E Corporation.