Energy rates are the cost per kilowatt-hour that customers are charged for their electricity service. You can choose the rate plan that’s best for you based on when and how much electricity you use. Most residential customers are currently on an E-1 rate, which charges you based on how much electricity you use. This March customers will be transitioning to a Time-of-Use rate, which charges you based on when you use electricity.

How MCE Sets Rates

MCE typically sets its rates once a year. MCE’s rates are released to the public with a 30-day review and comment period. If a rate increase is being proposed, customers also receive a notice on their bills. All rate changes are reviewed publicly by MCE’s Board of Directors and approved in a voting meeting.

All rates are set with the following objectives:

  • Revenue sufficiency: Rates must recover all expenses, debt service, and other expenditure requirements, and build prudent reserves (that is, the “revenue requirement”).
  • Rate competitiveness: Rates must allow MCE to successfully compete in the marketplace to retain and attract customers.
  • Rate stability: Rate changes should be minimized to reduce impact on customer bills.
  • Customer understanding: Rates should be simple, transparent, and easily understood by customers.
  • Equity among customers: Rate differences among customers should be justified by differences in usage characteristics, cost of service, or both.
  • Efficiency: Rates should encourage conservation and efficient use of electricity (for example, off-peak vehicle charging or time-of-use load shifting).

January 2022 Rate Change

On January 1, 2022, MCE’s latest rate change went into effect. This change slightly increased rates at an average of $1.61 more per month for typical households. MCE’s Board of Directors decided to increase rates to maintain revenue sufficiency as wholesale energy prices have become more expensive.

When sharing information on rates, MCE always provides cost comparisons. While MCE’s generation rates have always been less expensive than PG&E’s, our total bill cost can sometimes be higher depending on the cost of additional PG&E fees. Visit our rates page for the most up-to-date cost comparison between MCE and PG&E.

Future Rate Changes

MCE’s Board of Directors provided approval for staff to implement an additional rate increase in spring 2022, when PG&E’s primary 2022 rate increase will also go into effect. The decision requires MCE to provide at least a 2% discount to customers compared to PG&E rates. Updated cost comparisons will be provided on MCE’s website at that time.