Learn how PG&E’s 2024 rate increase could impact you and how you can lower your bills.
The winter season is when many Californians receive some of their highest energy bills of the year. Often, this is the result of increased energy usage – the sun sets earlier and the cold temperatures mean more people are running heaters to keep warm. Some of this year’s increase may also be the result of PG&E’s recently approved rate increases, which also affect MCE customers.
PG&E’s budget for 2024-2026 was approved by the California Public Utilities Commission on November 16, 2023. This budget includes an increase of $13.5 billion in 2024 which will be funded through an increase in customer rates. All PG&E electric customers including those that receive service through MCE will pay these rate increases which went into effect on January 1, 2024.
How much is the PG&E rate increase for the typical customer?
For the average residential customer, the rate increase will be about $0.066 per kilowatt-hour. That adds up to $10.50 a month for most MCE customers and $7.25 for those with a CARE discount. Customers who have opted out of MCE to receive PG&E’s generation service will see a greater bill increase of around $34.32 a month for most customers and $20.46 for those with a CARE discount. You can view a cost comparison* for an average customer on your website at mceCleanEnergy.org/rates.
*Please note that the current comparison shows rates as of 6/01/2023. PG&E is currently working on updating these comparisons to reflect the 1/1/2024 rate change.
PG&E Bill Impacts
| Increase for MCE Customers | Increase for PG&E Customers | |
|---|---|---|
| Average Residential Customer | $10.50 (4.1%) | $34.32 (13.2%) |
| Average Residential CARE** Customer | $7.25 (4%) | $20.46 (12.1%) |
**The California Alternative Rates for Energy (CARE) program is a monthly discount of 20% or more on gas and electricity. Participants qualify by meeting income guidelines or enrolling in certain public assistance programs. Visit mceCleanEnergy.org/lowerbill to learn more and see if you qualify.
Why did PG&E increase rates?
PG&E has announced that they’re making several changes to ensure the safety and reliability of their services including big investments in undergrounding electric lines to decrease wildfire risk. These upgrades and recent inflation are the main reasons PG&E increased their rates this year.
It’s important to note, these increased costs are only for PG&E transmission and delivery, not for MCE’s portion of your electricity bill which covers generation of clean energy and replaces a fee that PG&E would otherwise charge. MCE has not changed rates since January 2023.
PG&E plans to increase rates an additional 6-7% on March 1, 2024, affecting all customers with an average impact of $3.50 for a typical MCE residential customer.
Why do PG&E rate increases affect MCE customers?
Electricity service can be thought of in two parts: generation and delivery. MCE provides just the generation portion of your electricity service, ensuring more renewable energy is generated on behalf of customers like you. PG&E continues to deliver the electricity, maintaining the lines and wires that distribute electricity to your home or business. Rate increases on PG&E delivery services will still impact MCE customers.
PG&E is also responsible for all gas services and increases apply to all customers. MCE does not supply any gas services.
Despite PG&E’s increases MCE is proud to provide residents and businesses more renewable energy at lower rates, demonstrating our commitment to sustainability and affordability for our customers.
How can I lower my bill?
- Find out if you are eligible for California’s discount programs, like CARE or FERA, which can save you up to 35% on your bill. Visit our website at mcecleanenergy.org/lowerbill or get in touch with us with to see if you qualify.
- Try to reduce your energy use every day from 4-9pm when rates are the highest. Things like preheating your home before the sun goes down to minimize the use of space heaters, running major appliances, like washer, dryer, and dishwasher, before starting work in the morning, and charging EVs with scheduled charging programs can make a big difference in your bill by using energy when the rates are lower. Consider using MCE’s scheduled charging app, MCE Sync!
- Turn devices off when not in use by using power strips with an on-off switch. Energy usage from devices that are left plugged in when not in use can be up to 10% of your annual energy usage. That adds up fast!
For a refresher on how to read and understand your energy bill, check out this video.
