How PG&E Rate Changes Affect SJCE Customers

If your recent energy bill seems higher than usual, you’re not imagining it. Across the Bay Area, customers are feeling the impact of PG&E rate increases. As your community-owned electricity provider, San José Clean Energy (SJCE) wants you to understand what’s driving these changes—and how we can help you stay in control of your energy costs. 

Your electricity service has two parts: 

• Generation: SJCE buys and supplies clean, affordable power.
• Delivery: PG&E owns and maintains the poles, wires, and meters that deliver that power to your home.

To learn more about your bill, visit: SanJoseCleanEnergy.org/Understanding-Your-Bill.

When PG&E raises delivery rates, all customers are affected equally. Currently, delivery charges make up roughly two-thirds of total electric costs, meaning customers pay nearly twice as much to have power delivered as they do for the electricity itself.

How Much Have Rates Changed?

According to KQED, since 2020, PG&E’s residential electricity rates have risen nearly 70%, with the average combined electric and gas bill climbing from about $179 in 2020 to nearly $300 today. These changes affect all households in PG&E’s service area, including SJCE customers, because PG&E still delivers power over its poles and wires and sets those delivery charges. 

California’s electricity costs are among the highest in the nation, and they’ve grown faster than inflation. According to the California Public Advocates Office, residential rates have more than doubled since 2015. In 2024 alone, PG&E implemented five separate rate changes for generation and delivery. 

Seasonal rates also play a role. Customers on time-of-use (TOU) or EV rate plans pay more from 4–9 p.m. during summer months (June–September). If your bill jumped around June or July, that’s likely the reason. Reviewing your rate plan and shifting some usage to off-peak hours can help lower costs. 

PG&E slightly reduced delivery rates by 2.1% on September 1, 2025, following the completion of several wildfire mitigation projects. Gas rates dropped 0.4%, offering minor relief for customers who use both gas and electricity. 

PG&E has filed for a roughly 4% delivery rate increase beginning January 1, 2026.

Why Are Rates Increasing? 

According to PG&E and the California Public Utilities Commission (CPUC), rate hikes stem from several major factors: 

• Wildfire safety and grid hardening: Billions have been spent upgrading aging equipment, trimming vegetation, and undergrounding power lines.
• Transmission and delivery upgrades: Maintaining and replacing older grid infrastructure is expensive.
• Regulatory compliance: Meeting state mandates for renewable energy and reliability adds costs.
• Shareholder profits: Unlike SJCE, PG&E is an investor-owned utility that pays dividends to shareholders and an average salary of over $5M to top executives. PG&E has requested a higher return on equity that could add about $5.50 to monthly residential bills in 2026 if approved.

SJCE’s Commitment to Customers 

As a not-for-profit, community-owned agency, SJCE reinvests all revenue back into the community—not shareholders. We’re working to make clean energy costs fair and reliable for every San José resident. 

We secure multi-year renewable energy contracts to protect our customers from volatile energy markets. By adding new wind, solar, and battery projects, we help stabilize prices and ensuring you get clean, renewable energy. 

Since launching in 2019, SJCE customers have saved millions through lower generation rates and bill credits; including an estimated $77M since 2023 alone. Those savings stay local—funding new programs, incentives, and community benefits right here in San José.  

SJCE customers also continue to receive over 60% renewable energy by default — which is over 2x more renewable energy than provided by PG&E. 

Our GreenSource service is currently priced below PG&E’s generation rates, while our TotalGreen option provides 100% renewable energy for just a small premium over GreenSource. 

Steps You Can Take to Save 

While SJCE keeps working to make generation rates fair, you can take additional actions to manage your overall energy use.  

• Avoid using energy during peak times: run major appliances like dishwashers and washing machines before 4 p.m. or after 9 p.m. 
• Enroll in CARE or FERA: these state programs provide monthly discounts for qualifying households. CARE and FERA customers receive an extra 10% discount with our SJ Cares rate. 
• Use SJCE’s Incentive Finder: discover rebates and federal tax credits to help offset upgrade costs. You can even talk to our Go Electric Advisors to get free expert advice.  
• Join Peak Rewards: let your smart thermostat automatically save energy when demand is high—and earn SJCE bill credits without lifting a finger. 
• Upgrade to energy-efficient electric appliances like heat pumps, induction cooktops, and smart thermostats to reduce your energy use and save money over time.  Our EcoHome Rebates offers incentives for installing a heat pump water heater, HVAC system, or adding battery storage.  

Looking Ahead

Experts expect PG&E’s rates to level out in 2026, but long-term costs will likely remain high as California modernizes its energy infrastructure and adapts to climate change. 

That’s why SJCE is fighting for reasonably priced, clean energy at every level—from securing stable renewable contracts to advocating for fair state policies. As your local public energy provider, we’re here to help you navigate changes, find savings, and power your home with confidence.