Policy ยท Analysis
The new flat charge on your PG&E bill, explained for San Francisco
In 2024 the state approved a fixed monthly charge for PG&E customers, with the first amount phasing in from late 2025. Here is what it is, who watches it most closely, and how to find it on your own statement.
I. What the fixed charge actually is
This charge covers part of what it costs to keep you connected to the grid: the poles, wires, and crews that stand ready whether you draw a lot of power or almost none. California law passed in 2022 directed the CPUC, the state agency that sets what the big utilities may charge, to move some of those fixed costs off the per kilowatt hour rate and into a flat amount, and to scale that amount by household income so lower-income customers pay less.
Beginning in late 2025, the flat charge phases in for PG&E residential customers at roughly twenty-four dollars a month at last public report, with about six dollars for customers on the CARE discount and roughly twelve for those on FERA (both bill-assistance programs for lower-income households). In return, the price of each kilowatt hour you use came down by a few cents. Nothing about the charge depends on how hot your water heater runs or how long the fog keeps your lights on.
II. Who comes out ahead, and who watches closely
If you use a lot of electricity, shifting cost off the per kilowatt hour rate can help, because the part of your bill that scales with use got a little cheaper. A large household that heats and cooks with electricity might see a slightly lower total. The math only works that way, though, if your usage is high enough for the lower rate to outweigh the new flat amount.
Rooftop solar changes the picture, and so does using very little. A panel array on a Noe Valley Victorian can zero out the energy you buy from the grid, but it cannot zero out a flat connection charge, so solar owners now carry a fixed cost no array erases. The same goes for a careful single-person household in a small Richmond District flat: if you already kept your bill low, a flat charge is a bigger share of a small number.
III. Finding it on a San Francisco bill
Here is the part that surprises many San Franciscans: if you buy your electricity from CleanPowerSF, the city's community choice program run through the SFPUC, the fixed charge still applies. CleanPowerSF supplies the power, but PG&E owns the wires and still delivers it, and the flat charge rides on that delivery service. It shows up on your PG&E bill no matter who generates your electricity.
On the statement itself, look under the delivery or PG&E charges, not the generation line, for a flat dollar amount that does not change with your usage. To confirm it, compare the figure against PG&E's posted residential rate schedules and the CPUC's own summary of the decision. If the number on your bill does not match what those public pages show, that is worth a call to PG&E.
IV. Worth watching this month
1. Watch your first full-month statement after late 2025 for the flat charge, which should appear as a fixed dollar amount under PG&E delivery.
2. Check cpuc.ca.gov before assuming the amount is settled, since the commission has said it may revisit the charge in future rate proceedings.
3. Look at PG&E's residential rate schedules when rates reset, usually at the start of the year, to see the current flat amount and per kilowatt hour price.
4. If you are pricing rooftop solar on a city Victorian, build roughly twenty-four dollars a month into any payback estimate, because no array removes it.
5. CleanPowerSF customers should confirm the charge lands under delivery, not generation, on the next bill.
Frequently asked questions
Is the fixed charge the same for everyone?
No. Most households pay roughly twenty-four dollars a month at last public report, while customers on the CARE or FERA assistance programs pay less, about six and twelve dollars respectively. The amounts can change in future CPUC proceedings.
I'm a CleanPowerSF customer. Does this apply to me?
Yes. CleanPowerSF supplies your electricity, but PG&E still delivers it over its wires, and the fixed charge is part of that delivery service. It appears on your PG&E bill regardless of who generates your power.
Does rooftop solar let me avoid it?
No. Solar can lower or zero out the energy you buy, but the fixed charge is a flat amount for being connected to the grid. It stays even in a month when your panels cover all your use.
Will my total bill go up or down?
It depends on how much electricity you use. Higher users may see a slightly lower total because the per kilowatt hour rate came down, while very low users and solar owners may pay a bit more.
References
- CPUC, Income-Graduated Fixed Charge, The state regulator's own summary of the 2024 decision and the approved charge amounts (government source)., www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-rates/income-graduated-fixed-charge.
- CPUC, Proceedings and rulemaking, Where to read the full decision and any later filings that could change the charge (government source)., www.cpuc.ca.gov/proceedings-and-rulemaking.
- PG&E, Electric rate schedules and tariffs, The utility's posted residential rates, where you can check the current fixed amount and per kilowatt hour price., www.pge.com/tariffs.
- PG&E, Understanding your bill, A guide to each line item, useful for locating the fixed charge under delivery charges., www.pge.com/en/account/billing-and-assistance/understanding-your-bill.html.
- CleanPowerSF, Rates, San Francisco's community choice program explains how its generation charges sit alongside PG&E delivery charges., www.cleanpowersf.org/rates.