PG&E Natural Gas Rates for January 1, 2026: Rates Fall on Accounting, Not Reform
PG&E Annual Gas True-Up Filing
PG&E filed Advice Letter 5160-G, seeking CPUC approval of its 2026 Annual Gas True-Up to update gas transportation rates effective January 1, 2026.
The filing replaces PG&E's preliminary Annual Gas True-Up (see our summary here), which the CPUC approved earlier this month. Updated forecasts are based on recorded balances through November 30, 2025 and incorporate final, CPUC-authorized revenue requirement changes adopted late in the year.
PG&E now proposes total 2026 gas transportation revenue requirements of $5.676 billion, a net reduction of $292 million from amounts currently in rates, driven primarily by lower end-use transportation revenue requirements and reduced gas Public Purpose Program surcharges, partially offset by higher unbundled storage and backbone costs.
| Description | Currently in Rates ($ million) |
Proposed ($ million) |
Change ($ million) |
|---|---|---|---|
| End-Use Gas Transportation | $5,108 | $4,876 | ($232) |
| Storage and Backbone Unbundled Costs | 390 | 407 | $17 |
| Gas PPP Surcharges | 470 | 393 | (77) |
| Total Gas Transportation Revenue Requirements | $5,968 | $5,676 | ($292) |
Gas transportation balancing accounts are projected to be undercollected by $108 million at year-end 2025 ($98 million less than the balances currently being amortized) resulting in downward adjustments to customer class charge components.
The Annual Gas True-Up rolls forward a limited set of notable balancing accounts, including: