PG&E Electric Rates for January 1, 2026: Bundled Rates Fall 5.7% as DA and CCA Charges Jump 19%

PG&E submitted Advice Letter 7797-E, its Annual Electric True-Up filing, to implement consolidated electric rate and tariff updates effective January 1, 2026.

The main story: Load-exit economics continue to shift. Bundled customers will see a 5.7% average rate decline driven by balancing-account timing. Meanwhile, Direct Access and Community Choice Aggregator customers face a 19% increase as wildfire recovery, Power Charge Indifference Adjustment, Cost Allocation Mechanism, and Diablo Canyon extended-operations costs settle into non-bypassable charges. Entities that assume utility costs can be avoided through procurement choices alone must reckon with a fixed-cost floor that is rising faster than the commodities being displaced.

The filing rolls forward all CPUC- and FERC-authorized revenue requirement changes since PG&E’s preliminary true-up filing (summarized here), updates year-end balancing account forecasts based on recorded data through November 2025, and incorporates final Commission decisions adopted through December 18, 2025. In total, PG&E forecasts a $1.7 billion increase in electric revenues relative to revenues at present rates, driven primarily by balancing account amortizations, wildfire-related charges, generation and procurement adjustments, and other approved program costs.

Despite the higher overall revenue requirement, system-average bundled rates are declining due to sales growth and rate design effects, while Direct Access and CCA rates rise because those customers’ rates exclude commodity charges and therefore reflect a higher share of non-commodity cost recovery.

The advice letter also implements:

• Updated cost-of-capital parameters;
• Diablo Canyon extended-operations cost recovery under Senate Bill 846;
• Energy Resource Recovery Account and Power Charge Indifference Adjustment updates;
• Transmission-related pass-throughs accepted by FERC; and
• Various Public Purpose Program and wildfire-related charges.

Illustrative rates are provided below. Protests are due January 20.

INSTANT ANALYSIS: PG&E’s January 1 electric rate implementation shows California’s cost-recovery center of gravity continuing to move away from energy procurement and toward system access. In short, energy is becoming a smaller share of customer bills, and access to a resilient, always-available system is becoming the product.