PG&E Bundled Electric Rates Predicted to Rise an Additional 22.5% in 2023

For several decades commercial energy rates for California’s investor-owned utilities (PG&E, SCE and SDG&E) have steadily and predictability increased, on average, 2-4% annually, aligning with typical expected inflation. However, beginning in 2020, PG&E, SCE and SDG&E customers experienced several, unprecedented rate hikes.

These dramatic shifts in electricity prices are primarily in response to energy market changes, utility infrastructure upgrades, and wildfire mitigation; three issues that will undoubtedly continue to plague California, meaning customers can expect to see continued large sporadic rate hikes like these well into the future. Already utilities are predicting additional rate increases into 2023 and beyond. For example, PG&E released their 2022 Q3 Rates Pricing, Tools and Transitions report outlining rate predictions for the remainder of 2022 and into Q2/Q3 of 2023.

As your trusted energy solution provider, we want to keep you well-informed of these increases, how they may affect your operations, and how we can help you mitigate the impacts of these changes.

2022 Summary

Below are the key takeaways from the rate report for 2022 and what they mean for your operations now and into the future.

IMPACTS: An agricultural user with a typical load of ~2.5 GWh/year on PG&E’s bundled AG-C rate can expect to pay $80,000 more in energy costs and $20,000 more in demand costs, for a total of $100,000 more for electricity in 2022 than they did in 2021

CalCom Energy Can Help You Mitigate These Changes

A CalCom Energy installed solar PV system generates onsite electricity during daylight hours for use in your operations, reducing the amount of energy required from the grid, lowering energy charges on your utility bills, and helping reduce the impact of future rate increases.

An energy storage system integrating with solar PV can predict demand spikes and peak pricing periods and can discharge captured electricity during those times to help lower demand charges on your utility bills.

IMPACTS: After installing a 1 MW solar PV system, an agricultural user with a typical load of ~2.5 MWh/year on PG&E’s bundled AG-C rate can expect to offset 95% of their onsite usage, realize over $400,000 in utility bill savings year 1, $16,000,000+ in utility bill savings over 25-years, and payoff the PV system in less than 3 year

Curious to know more about the potential utility bill savings available to you and your operations through a CalCom Energy solar and/or energy storage system? If you would like more information about how rates will impact your current utility bills and how solar and/or energy storage might help to mitigate the rising costs, click the link below and one of our staff will follow up with you soon.