PG&E just raised its rates (again!); what’s going on and what can I do?

Effective March 1, PG&E condensed the tiers of its E-1 residential rate schedule (the tariff most homeowners employ). And, again, electricity rates went up, this time by ~8%. What’s the story and what can I do, if anything?

First, a little background. Every few years, PG&E submits a three-year budget to the California Public Utilities Corp (CPUC), aka, their “rate case”. Therein, they propose myriad rate schedules for commercial, agricultural, residential and other customer groups. The CPUC eventually approves PG&E’s budget, but that’s not the end; over the ensuing three-year period, rate schedules are modified (read: rates are increased) to reflect contemporary PG&E expenses. Over the past two years, PG&E’s residential rates have increased ~43%. Ouch.

Like it or not, inflationary pressures on PG&E’s rates are somewhat just:

  • Replacement of aged infrastructure (e.g., natural gas lines; updated the grid);
  • Retirement of idled assets (e.g., “peaker” power plants; Diablo Canyon);
  • Reduction in generation of inexpensive hydro electricity (due to the drought);
  • AB 32 and the Renewable Portfolio Standard (RPS); and,
  • Long-term power purchase contracts.

And, living here, we have no choice but to love the one we’re with, at least until Valley Clean Energy Alliance (VCEA) launches. (Side note: PG&E has commenced its fear-and-smear campaign regarding VCEA and community choice energy … it’s gonna get ugly.)

Homeowners have four rate schedules to choose from:

  • E1 (the most common rate): Electricity is priced based on tiers (monthly usage).
  • EV: Time-of-use pricing for electric vehicle owners.
  • E-TOU (A): Time-of-use pricing, with “peak” periods from 3:00-8:00 p.m., Monday through Friday.
  • E-TOU (B): Also time-of-use, with peak pricing from 4:00-9:00 p.m.

So, what’s a homeowner to do? Here are a few simple ways to reduce your utility costs:

1. Go to PG&E’s website, log in to your (or create an) account and select “Compare Rate Plans” in the right column. Based on the time and volume of your electricity use, PG&E — such kind souls! — will quantify your costs under the above scenarios and suggest the least expensive rate schedule. More than likely, one of the time-of-use plans will reduce your bill.

2. Change your behavior. No, not your comfort (or the way you live), but your electricity use. Simple things like doing laundry in the morning, on weekends, or after 9:00 p.m. will lower your costs. So too, if you have a pool, will changing the time your pump runs; start it at 11:00 p.m. And, in the summer cool your home in the morning and early afternoon, then turn off your AC at 3:00.

3. Replace incandescent and CFL bulbs with LEDs. This is not even low hanging fruit in the energy savings world; it’s fruit laying on the ground. 

4. If you have a swimming pool, install a variable speed pool pump. Thereby you can reduce the electricity consumed by your pool by ~70%. Davis Home Trends, Leslies and several other stores can lend a hand.

5. If you haven’t done so already, go solar and insulate yourself from future PG&E rate increases. (No duh, eh?)

And, of course, feel free to contact us or stop by. As Jackson Browne once mused, we may not have the answer, but we believe we’ve got a plan.