What Pacific Gas & Electric Does

Pacific Gas & Electric (PG&E) is the utility company that delivers natural gas and electricity to most of Northern and Central California. If you live in their service area, PG&E owns the power lines and gas pipes that run to your home, reads your meter, and sends you a bill each month. You do not choose PG&E — it is the only utility available in your region, which is why it is called a regulated monopoly.

PG&E serves roughly 16 million people across a territory that stretches from the Oregon border south to Kern County and from the Pacific Ocean east to the Nevada border. The company generates electricity from natural gas, hydroelectric dams, solar, and wind farms, then distributes it through transmission lines and local power lines to homes and businesses. For natural gas, PG&E purchases gas from suppliers and delivers it through underground pipes.

Your relationship with PG&E is straightforward: they deliver the energy, you pay for what you use, and they maintain the lines and pipes. If your power goes out, you call PG&E. If you smell gas, you call PG&E. If you have questions about your bill, you contact PG&E customer service.

Key Takeaways

  • PG&E is the only electricity and natural gas provider in Northern and Central California, so you cannot switch to a different utility.
  • Your monthly bill shows how much electricity and gas you used, the rate per unit, and any taxes or surcharges added by the state or your local government.
  • PG&E offers budget billing, which spreads your annual costs into equal monthly payments so your bill does not spike in summer or winter.
  • If you cannot pay your bill, PG&E has hardship programs that may reduce your payments or delay disconnection while you work out a plan.
  • You can report outages, gas leaks, and downed power lines to PG&E by phone or through their website, and they track outage status in real time.

How Your PG&E Bill Is Calculated

Your PG&E bill has two main parts: the electricity charge and the natural gas charge (if you use gas). Each is calculated separately, and both appear on the same monthly statement.

For electricity, PG&E charges you based on how many kilowatt-hours (kWh) you used. The rate per kWh varies depending on the time of year and the time of day you use the power. During summer months (roughly June through September), rates are higher during peak hours (typically 4 p.m. to 9 p.m.) and lower during off-peak hours. This is called time-of-use pricing. In winter, the peak period is shorter and rates are generally lower overall. Your bill shows the total kWh you used, broken down by time period, and the cost for each period.

For natural gas, PG&E charges per therm, which is a unit of heat energy. Like electricity, the rate per therm changes with the season — winter rates are higher because heating demand is greater. Your bill shows how many therms you used and the cost.

After the energy charges, PG&E adds taxes, regulatory fees, and surcharges set by the California Public Utilities Commission and your city or county. These are not optional and appear as separate line items on your bill. The total is what you owe.

Budget Billing and Levelized Payments

If your electricity or gas bill swings wildly from month to month — high in summer because of air conditioning, high in winter because of heating — you can ask PG&E to put you on budget billing. This spreads your annual energy costs into 12 equal monthly payments, so you pay roughly the same amount each month instead of facing a shock bill in July or January.

To enroll in budget billing, contact PG&E customer service by phone or through your online account. PG&E calculates your average annual cost based on your usage history and divides it by 12. You pay that amount each month. At the end of the year, PG&E reconciles what you actually used against what you paid. If you used less, you get a credit on your next bill. If you used more, you owe the difference.

Budget billing does not reduce what you pay overall — it just redistributes the cost. But it makes planning easier and prevents the surprise of a $300 bill in August if you run your air conditioner heavily.

What to Do If You Cannot Pay Your Bill

If you fall behind on your PG&E bill, the company will not disconnect your service when ready. California law requires PG&E to give you notice and time to pay or work out a plan before shutting off your power or gas.

Contact PG&E customer service as soon as you know you will have trouble paying. Explain your situation — job loss, medical emergency, unexpected expense. PG&E has several options. You can set up a deferred payment plan, which lets you pay part of the bill now and the rest over several months without late fees or disconnection. You can also ask about bill forgiveness programs if you are experiencing financial hardship. These programs may reduce or forgive part of your bill if you meet income requirements.

If you are 65 or older, disabled, or have a medical condition that makes electricity or gas essential, you may be protected from disconnection for longer. Tell PG&E about your situation when you call. California also has the California Alternate Rates for Energy (CARE) program, which lowers bills for low-income households. You can ask PG&E whether you may be may be able to access based on your household income and size.

How to Report an Outage or Gas Leak

If your power goes out, check whether your neighbors' lights are on. If the outage is only at your home, the problem may be inside your house — check your circuit breaker or call an electrician. If the outage is widespread, it is a PG&E system issue.

Report the outage to PG&E by calling 1-800-752-4357 or through the PG&E website. When you call, have your account number ready. PG&E will ask where you are, what you see (downed lines, sparks, etc.), and whether anyone is in danger. They will add your location to their outage map, which you can view online to see how many people are affected and when power is expected to return.

If you smell gas or suspect a gas leak, do not use electrical switches, light a match, or do anything that could create a spark. Leave the building when ready and call PG&E's gas emergency line at 1-800-752-4357 from a safe location. PG&E will dispatch a technician to check for a leak. Do not re-enter the building until PG&E says it is safe.

Managing Your Account Online

PG&E offers an online account portal where you can view your bill, see your usage history, pay online, and update your contact information. To set up an account, go to pge.com and click "Create Account" or "Sign In." You will need your account number, which appears on your paper bill or in any PG&E letter.

Through your online account, you can see a day-by-day breakdown of your electricity and gas usage, which helps you spot patterns — for example, whether your air conditioner is running more than expected. You can also set up automatic payments so your bill is paid on the same day each month, and you can receive email or text alerts when your bill is ready.

If you do not have internet access or prefer to handle things by phone, you can call PG&E customer service at 1-800-752-4357. They can answer questions about your bill, help you set up a payment plan, or report an outage.

Rate Changes and How They Happen

PG&E's rates are not set by the company alone. The California Public Utilities Commission (CPUC) reviews PG&E's costs and approves rate changes. When PG&E wants to raise rates, it files a case with the CPUC explaining why — for example, the cost of maintaining aging infrastructure, investments in renewable energy, or wildfire prevention. The CPUC holds hearings, takes public comment, and decides whether to approve, deny, or modify the rate increase.

Rate changes usually happen once a year, typically in January. When rates change, PG&E sends a notice with your bill explaining what is changing and by how much. The notice also explains how the change affects a typical household's bill. You cannot prevent a rate increase approved by the CPUC, but you can reduce your own bill by using less energy — running your air conditioner less in summer, lowering your thermostat in winter, or switching to LED light bulbs.

Frequently Asked Questions

Can I switch to a different electricity provider in my area?

In most of PG&E's service territory, no — PG&E is the only utility. However, some areas in Northern California participate in Community Choice Aggregation (CCA), which lets you buy renewable energy from a local agency instead of PG&E while still using PG&E's power lines. If CCA is available where you live, you will receive a notice. You can opt in or stay with PG&E's standard service.

Why is my bill so much higher this month?

The most common reasons are seasonal changes (summer air conditioning or winter heating), a rate increase approved by the CPUC, or a change in your usage. Check your bill for a usage comparison to last year's same month. If usage is similar but the bill is higher, rates likely increased. If usage is much higher, check whether your air conditioner or heater is running more than usual, or whether an appliance is broken.

What happens if I do not pay my PG&E bill?

PG&E will send you a notice and give you time to pay before disconnecting service. If you ignore the notice, PG&E may shut off your power or gas. Once disconnected, you must pay the full past-due amount plus a reconnection fee to restore service. If you are struggling to pay, contact PG&E before you fall behind — they have programs to help.

How do I report a downed power line?

Call PG&E at 1-800-752-4357 when ready and describe the location and what you see. Do not touch the line or go near it — assume it is live and dangerous. If someone is in contact with the line or in when ready danger, call 911 first, then call PG&E.

Does PG&E offer discounts for seniors or low-income households?

Yes. The CARE program reduces bills for households that meet income limits. You can ask PG&E whether you may be may be able to access, or you can contact your local community action agency. PG&E also has protections against disconnection for seniors and people with medical conditions that depend on electricity or gas.