PG&E Expects Lower Residential Electric Rates in 2026 Compared to 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 02 2026
0mins
Should l Buy PCG?
Source: PRnewswire
- Continuous Price Reductions: On March 1, 2026, PG&E reduced residential electric rates by 1.8%, marking the fifth decrease since January 2024, resulting in a 13% reduction from January 2024, with typical residential bills decreasing by about $25 per month, demonstrating the company's commitment to managing energy costs for customers.
- CARE Customer Discounts: For customers enrolled in the California Alternate Rates for Energy (CARE) program, rates decreased by approximately 8.3%, leading to a monthly bill reduction of about $10.37, further alleviating financial burdens on low-income households and reflecting PG&E's efforts in social responsibility.
- New Billing Structure: The newly implemented Base Services Charge enhances bill clarity and transparency, with a typical charge of about $24 per month that does not increase PG&E's revenue, aimed at reducing costs for low-income customers and facilitating the transition to cleaner electric appliances, aligning with California's policy direction.
- Slight Natural Gas Price Increase: Concurrently, PG&E's natural gas rates increased by 0.3% on March 1, 2026, resulting in a typical residential gas bill increase of about $0.24 per month, reflecting the recovery of costs for safety and emergency response work, indicating the company's ongoing focus on energy supply stability.
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Analyst Views on PCG
Wall Street analysts forecast PCG stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 18.170
Low
18.00
Averages
21.36
High
25.00
Current: 18.170
Low
18.00
Averages
21.36
High
25.00
About PCG
PG&E Corporation is a holding company. The Company's primary operating subsidiary is Pacific Gas and Electric Company (the Utility), a public utility operating in Northern and Central California. The Utility is engaged in the sale and delivery of electricity and natural gas to customers. The Utility generates electricity and provides electric transmission and distribution services throughout its service area in northern and central California to residential, commercial, industrial, and agricultural customers. The Utility provides electricity, transmission, and distribution services in its service area. The Utility owns approximately 18,000 circuit miles of interconnected transmission lines operating at voltages ranging from 60 kilovolts (kV) to 500 kV. The Utility also operates 33 electric transmission substations with a capacity of approximately 67,000 megavolt amperes (MVA). Customers can also obtain electricity from alternative providers such as municipalities (CCAs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PG&E Upgraded to Buy by UBS with $23 Price Target Amid Positive Legislative Outlook
- Rating Upgrade: UBS upgraded PG&E from Neutral to Buy with a price target increase from $20 to $23, anticipating that improvements in wildfire policy and affordability will drive a re-rating, reflecting market confidence in the company's future performance.
- Earnings Growth Outlook: Analyst Gregg Orrill highlighted PG&E's projected earnings per share growth rate of approximately 9%, significantly exceeding the market's expectation of 7%, indicating strong potential for profitability.
- Dividend Policy Adjustment: PG&E plans to raise its dividend payout ratio to 20% by 2028, a move that not only reflects confidence in future cash flows but may also attract more investor interest in its stock.
- Legislative Support: Anticipated legislation in H2 2026 aimed at strengthening California's wildfire risk framework, along with a favorable resolution of the electric and gas rate case, could materially narrow PG&E's current 43% P/E utility discount, enhancing its market valuation.
See More
UBS Increases PG&E Corp's Target Price from $20 to $23
- PG&E Target Price Increase: UBS has raised the target price for PG&E Corp. to $23 from $20.
- Market Implications: This adjustment reflects UBS's positive outlook on PG&E's performance and market position.
See More
Major Wall Street Rating Updates on Monday
- Apple Rating Maintained: Citigroup reiterates Apple as a buy despite trimming its second-half earnings estimates, projecting a 140bps and 48bps gross margin headwind in 2026 and 2027, indicating Apple's relative strength in navigating memory component price hikes.
- Oracle Price Target Cut: Deutsche Bank lowers Oracle's price target from $375 to $300 while maintaining a buy rating, reflecting concerns over extended timelines to resolve issues that could impact equity performance in the coming quarters.
- Nvidia Core Holding: Citigroup reaffirms Nvidia as a core holding, emphasizing its pivotal role in agentic and physical AI, showcasing confidence in the company's growth potential in these critical sectors.
- Netflix Downgrade: Wells Fargo downgrades Netflix from overweight to equal weight, citing the need for continued investment to drive growth and concerns over its competitive positioning in the market, indicating a cautious outlook on its future performance.
See More
Analysis of PG&E Preferred Shares Performance
- Price Performance Comparison: PG&E's 5% Redeemable Preferred Stock (PCG.PRE) rose approximately 1.3% on Tuesday, contrasting with a 1% decline in common shares (PCG), indicating the preferred stock's relative stability amid market fluctuations, which may attract investors seeking safer investments.
- Dividend History Review: The historical dividend payments of PCG.PRE highlight its provision of a stable income stream, enhancing its appeal as an income investment tool, especially as demand for fixed-income products remains high in the current market environment.
- Market Sentiment Analysis: The rise in preferred shares, despite the poor performance of common stock, may reflect market confidence in PG&E's financial health, particularly as the company works to improve its operations and financial standing, potentially attracting more institutional investors.
- Investment Strategy Recommendation: Given the stability and dividend yield of the preferred stock, investors may reassess their portfolios to increase allocations to PCG.PRE in order to navigate market uncertainties and seek higher returns.
See More
PG&E Expects Lower Residential Electric Rates in 2026 Compared to 2025
- Continuous Price Reductions: On March 1, 2026, PG&E reduced residential electric rates by 1.8%, marking the fifth decrease since January 2024, resulting in a 13% reduction from January 2024, with typical residential bills decreasing by about $25 per month, demonstrating the company's commitment to managing energy costs for customers.
- CARE Customer Discounts: For customers enrolled in the California Alternate Rates for Energy (CARE) program, rates decreased by approximately 8.3%, leading to a monthly bill reduction of about $10.37, further alleviating financial burdens on low-income households and reflecting PG&E's efforts in social responsibility.
- New Billing Structure: The newly implemented Base Services Charge enhances bill clarity and transparency, with a typical charge of about $24 per month that does not increase PG&E's revenue, aimed at reducing costs for low-income customers and facilitating the transition to cleaner electric appliances, aligning with California's policy direction.
- Slight Natural Gas Price Increase: Concurrently, PG&E's natural gas rates increased by 0.3% on March 1, 2026, resulting in a typical residential gas bill increase of about $0.24 per month, reflecting the recovery of costs for safety and emergency response work, indicating the company's ongoing focus on energy supply stability.
See More
PG&E Expects Lower Residential Electric Rates in 2026 Compared to 2025
- Continuous Rate Reductions: Pacific Gas and Electric Company (PG&E) has lowered residential electric rates by 1.8% on March 1, 2026, marking the fifth reduction since January 2024, reinforcing the company's commitment to reducing energy costs for customers, with expectations that overall rates in 2026 will be lower than in 2025.
- Customer Bill Relief: Since January 2024, residential electric rates have decreased by 13%, resulting in typical customer bills being about $25 lower per month, with CARE program participants seeing reductions of approximately $10.37 monthly, significantly easing household financial burdens.
- New Billing Structure Implementation: The introduction of the Base Services Charge enhances bill transparency and lowers electricity prices for all residential customers without increasing PG&E's revenue, aligning with California Public Utilities Commission directives to facilitate affordable transitions to clean-powered appliances for low-income customers.
- Slight Increase in Natural Gas Rates: Despite the decrease in electric rates, PG&E's natural gas rates increased by 0.3% on March 1, 2026, leading to a typical residential bill increase of about $0.24 per month, reflecting the recovery of authorized costs for safety and emergency response work, demonstrating the company's ongoing commitment to safety investments.
See More
PG&E Upgraded to Buy by UBS with $23 Price Target Amid Positive Legislative Outlook
- Rating Upgrade: UBS upgraded PG&E from Neutral to Buy with a price target increase from $20 to $23, anticipating that improvements in wildfire policy and affordability will drive a re-rating, reflecting market confidence in the company's future performance.
- Earnings Growth Outlook: Analyst Gregg Orrill highlighted PG&E's projected earnings per share growth rate of approximately 9%, significantly exceeding the market's expectation of 7%, indicating strong potential for profitability.
- Dividend Policy Adjustment: PG&E plans to raise its dividend payout ratio to 20% by 2028, a move that not only reflects confidence in future cash flows but may also attract more investor interest in its stock.
- Legislative Support: Anticipated legislation in H2 2026 aimed at strengthening California's wildfire risk framework, along with a favorable resolution of the electric and gas rate case, could materially narrow PG&E's current 43% P/E utility discount, enhancing its market valuation.
See More
UBS Increases PG&E Corp's Target Price from $20 to $23
- PG&E Target Price Increase: UBS has raised the target price for PG&E Corp. to $23 from $20.
- Market Implications: This adjustment reflects UBS's positive outlook on PG&E's performance and market position.
See More
Major Wall Street Rating Updates on Monday
- Apple Rating Maintained: Citigroup reiterates Apple as a buy despite trimming its second-half earnings estimates, projecting a 140bps and 48bps gross margin headwind in 2026 and 2027, indicating Apple's relative strength in navigating memory component price hikes.
- Oracle Price Target Cut: Deutsche Bank lowers Oracle's price target from $375 to $300 while maintaining a buy rating, reflecting concerns over extended timelines to resolve issues that could impact equity performance in the coming quarters.
- Nvidia Core Holding: Citigroup reaffirms Nvidia as a core holding, emphasizing its pivotal role in agentic and physical AI, showcasing confidence in the company's growth potential in these critical sectors.
- Netflix Downgrade: Wells Fargo downgrades Netflix from overweight to equal weight, citing the need for continued investment to drive growth and concerns over its competitive positioning in the market, indicating a cautious outlook on its future performance.
See More
Analysis of PG&E Preferred Shares Performance
- Price Performance Comparison: PG&E's 5% Redeemable Preferred Stock (PCG.PRE) rose approximately 1.3% on Tuesday, contrasting with a 1% decline in common shares (PCG), indicating the preferred stock's relative stability amid market fluctuations, which may attract investors seeking safer investments.
- Dividend History Review: The historical dividend payments of PCG.PRE highlight its provision of a stable income stream, enhancing its appeal as an income investment tool, especially as demand for fixed-income products remains high in the current market environment.
- Market Sentiment Analysis: The rise in preferred shares, despite the poor performance of common stock, may reflect market confidence in PG&E's financial health, particularly as the company works to improve its operations and financial standing, potentially attracting more institutional investors.
- Investment Strategy Recommendation: Given the stability and dividend yield of the preferred stock, investors may reassess their portfolios to increase allocations to PCG.PRE in order to navigate market uncertainties and seek higher returns.
See More
PG&E Expects Lower Residential Electric Rates in 2026 Compared to 2025
- Continuous Price Reductions: On March 1, 2026, PG&E reduced residential electric rates by 1.8%, marking the fifth decrease since January 2024, resulting in a 13% reduction from January 2024, with typical residential bills decreasing by about $25 per month, demonstrating the company's commitment to managing energy costs for customers.
- CARE Customer Discounts: For customers enrolled in the California Alternate Rates for Energy (CARE) program, rates decreased by approximately 8.3%, leading to a monthly bill reduction of about $10.37, further alleviating financial burdens on low-income households and reflecting PG&E's efforts in social responsibility.
- New Billing Structure: The newly implemented Base Services Charge enhances bill clarity and transparency, with a typical charge of about $24 per month that does not increase PG&E's revenue, aimed at reducing costs for low-income customers and facilitating the transition to cleaner electric appliances, aligning with California's policy direction.
- Slight Natural Gas Price Increase: Concurrently, PG&E's natural gas rates increased by 0.3% on March 1, 2026, resulting in a typical residential gas bill increase of about $0.24 per month, reflecting the recovery of costs for safety and emergency response work, indicating the company's ongoing focus on energy supply stability.
See More
PG&E Expects Lower Residential Electric Rates in 2026 Compared to 2025
- Continuous Rate Reductions: Pacific Gas and Electric Company (PG&E) has lowered residential electric rates by 1.8% on March 1, 2026, marking the fifth reduction since January 2024, reinforcing the company's commitment to reducing energy costs for customers, with expectations that overall rates in 2026 will be lower than in 2025.
- Customer Bill Relief: Since January 2024, residential electric rates have decreased by 13%, resulting in typical customer bills being about $25 lower per month, with CARE program participants seeing reductions of approximately $10.37 monthly, significantly easing household financial burdens.
- New Billing Structure Implementation: The introduction of the Base Services Charge enhances bill transparency and lowers electricity prices for all residential customers without increasing PG&E's revenue, aligning with California Public Utilities Commission directives to facilitate affordable transitions to clean-powered appliances for low-income customers.
- Slight Increase in Natural Gas Rates: Despite the decrease in electric rates, PG&E's natural gas rates increased by 0.3% on March 1, 2026, leading to a typical residential bill increase of about $0.24 per month, reflecting the recovery of authorized costs for safety and emergency response work, demonstrating the company's ongoing commitment to safety investments.
See More
