by Sacramento, CA – Pacific Gas & Electric (PG&E) announced changes to its electricity billing structure that will take effect in March, impacting customers across Northern and Central California. The utility’s new base services charge combines several fees previously included in monthly bills and aims to support California’s clean energy transition while adjusting electricity rates.
What the Base Services Charge Means
PG&E clarified that the base services charge is not a new fee but a restructured way of presenting costs that cover start-up connection, energy programs, call center services, and billing service charges. The charge will be set at $25.15 per month.
The restructuring will also slightly reduce the per-kilowatt-hour electricity rate by 5 to 7 cents, depending on the customer’s usage. PG&E officials explained that this combination is designed to encourage customers to adopt electric appliances and support the state’s clean energy goals, particularly under Assembly Bill 205, passed in 2022. The bill aims to accelerate renewable energy projects and reduce California’s dependence on fossil fuels.
“As required by the CPUC, PG&E will implement the Base Services Charge (BSC) in March,” a PG&E spokesperson told The Center Square. “Reducing the price of electricity makes it more affordable for low-income customers and encourages the transition to more clean-powered electric appliances in the home.”
Impact on Low-Income and High-Usage Customers
PG&E emphasized that the changes are designed to protect low-income households. Customers enrolled in programs such as CARE (California Alternative Rates for Energy) or FERA (Family Electric Rate Assistance) will pay a lower fixed base charge — $6 per month for CARE and $12 per month for FERA, according to Southern California Edison, which has implemented a similar structure.
“The goal of Assembly Bill 205 is to lower rates for low-income customers,” a PG&E representative said. “Customers who are on the income-qualified programs pay a lower fixed charge than people who are not. The base charge goes onto bills, and as part of the restructuring, the actual rate per kilowatt hour gets decreased for all customers.”
Medium and high-usage customers may see modest decreases in their bills due to the lower per-kilowatt-hour rates, while low-energy users not enrolled in income-based programs might experience a slight increase because the base charge can offset the reduced rate.
Examples of Monthly Bill Changes
PG&E provided examples showing how the new charge may affect different customers:
- Low usage (<200 kWh/month): bill could rise from $75 to $95
- Medium usage: bill could increase slightly from $184 to $188
- High usage: bill could decrease from $304 to $296
These changes reflect the utility’s goal of encouraging electrification and clean energy adoption while balancing fixed grid costs across all customers.
Southern California Edison Implements Similar Charge
PG&E is not alone; Southern California Edison introduced a $24 per month base services charge in November 2025. The company indicated that low-usage customers may see a slight bill increase unless they are enrolled in low-income programs. Gabriela Ornelas, a spokesperson for SCE, said the goal is to ensure electricity affordability while supporting California’s transition away from gas appliances.
“The purpose of the base services charge is to make it more affordable for all residential customers to use electric technologies,” Ornelas said. “For high-usage customers, the lower cost per kilowatt hour may help offset the base services charge. For low-usage customers, the low cost per kilowatt hour may not be enough to offset the base services charge.”
Legislative and Regulatory Oversight
The rate adjustments were approved by the California Public Utilities Commission (CPUC) in 2025. Staff from the commission provided a fact sheet explaining the changes but did not issue a statement. Senator Ben Allen (D-El Segundo) expressed cautious concern, noting that while the base charge clarifies costs, it could unintentionally subsidize high-consumption households.
“This is advertised as a transparent method to detail grid infrastructure costs and energy use costs separately,” Allen said. “But I share concerns that this may lead to subsidizing our highest consumers through redistributed charges. Such subsidizing is exactly what we need to be avoiding in the face of current affordability challenges.”
Encouraging Electrification and Clean Energy
PG&E officials emphasized that the base services charge is part of a broader effort to encourage customers to use electric appliances and vehicles while supporting California’s climate and clean energy goals.
“Not only does an incentive to encourage conservation remain, but this rate restructuring also supports important state decarbonization goals by making it more affordable for customers to electrify their homes and vehicles to help California achieve our clean energy transition goals,” a PG&E representative said.
Conclusion
The implementation of PG&E’s base services charge in March marks a major shift in how California customers pay for electricity. While some households may see slight increases, particularly low-energy users, the overall changes aim to reduce electricity costs for low-income and high-usage customers and accelerate the state’s transition to clean energy.
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