PG&E Files Natural Gas Rate and PPP Surcharge Updates

PG&E filed Advice Letter 5139-G to implement its Annual Gas True-Up for natural gas transportation rates effective January 1, 2026. The filing reconciles balances in various transportation balancing accounts for core and noncore customers, updates revenue requirements, and projects 2026 transportation Public Purpose Program (PPP) surcharge revenues.

PG&E estimates a total 2026 gas transportation revenue requirement of $5.96 billion, which is a slight decrease from current levels. This includes higher end-use transportation and storage costs but a significant reduction in PPP surcharge revenue needs.

PG&E projects an overall $208 million undercollection across its gas transportation balancing accounts by the end of 2025, which it seeks to amortize in 2026 rates. Major drivers of account balances include undercollections in the Core Fixed Cost Account, overcollections in noncore accounts, Assembly Bill 32 implementation fees, hazardous substance cleanup costs, wildfire mitigation-related adjustments, and cost adjustments from other proceedings such as cost-of-capital, Advanced Metering Infrastructure, and wildfire cost recovery decisions.

A separate filing in late December will consolidate final authorized revenue requirements and updated balancing account forecast. Protests are due November 20.

INSTANT ANALYSIS: Per PG&E's outlook, core residential and small commercial customers will see modest decreases, largely due to lower Public Purpose Program surcharges. Industrial and electric generation customers may receive deeper reductions (–8% to –17%) as PG&E amortizes undercollections and resets balancing account recoveries. As with previous years, a separate PG&E filing in December will finalize revenue requirements and balancing account forecasts (and modify many of these projections).