January 1, 2026 Electric Rate Updates: PG&E, SCE, and SDG&E

PG&E, SCE, and SDG&E each filed advice letters for preliminary implementation of their consolidated revenue requirement and rate changes on January 1, 2026.

• These filings pull together every CPUC- and FERC-approved (or expected) cost change effective at the start of 2026.
• The utilities will submit final consolidated ALs before January 1 that provide a more accurate projection of their rates.
• Protests to all three submissions are due December 8.

INSTANT ANALYSIS: Collectively, the filings show three very different rate paths heading into 2026. PG&E’s early numbers place considerable upward pressure on Direct Access/Community Choice Aggregator customers; SCE’s updates lean toward broad relief across its portfolio, and SDG&E’s increases reflect a mix of wildfire costs, ERRA updates, and weaker sales. Of course these are preliminary estimates, as the utilities' late-December true-ups will determine how much of this picture holds.

PG&E Preliminary Annual Electric True-Up

PG&E filed Advice Letter 7762-E as its preliminary Annual Electric True-Up and projects a 6.2% decrease in the system-average bundled electric rate but a 23.2% increase for Direct Access and Community Choice Aggregator customers.

PG&E requests approval to recover approximately $2.0 billion in forecast December 31, 2025 undercollections across numerous balancing accounts, including ERRA-related accounts, the Portfolio Allocation Balancing Account, the Modified Transition Cost Balancing Account, and wildfire- and public-purpose-related accounts.

The filing also incorporates revenue-requirement changes stemming from recent CPUC decisions (e.g., wildfire mitigation, non-wildfire insurance, transmission adjustments, and the 2022 Wildfire Mitigation and Catastrophic Events account) as well as pending requests related to:

• Gas Advanced Metering Infrastructure;
• Transmission Revenue Requirement Memorandum Account; and
• Diablo Canyon extended operations.

PG&E will submit a final true-up submission in late December reflecting all Commission decisions issued by mid-December and updated recorded balances (this presumably will include the pending Cost of Capital PD; see our summary of that item here).

PG&E's preliminary filing also explains how distribution, generation, Power Charge Indifference Adjustment, public-purpose, wildfire, and non-bypassable charges will be allocated consistent with prior CPUC rulings. Below are illustrative rates.