Dive Brief

• Pacific Gas & Electric has proposed lowering electric rates for two out three tiers of electric customers in a first step towards changing the utility's rate structure.
• Rates would fall by 5 cents/kWh, or 2.4% and 2.3%, for customers using more than 1,500 kWh and 850 kWh a month, respectively, under the plan. Rates for customers using at least 550 kWh a month would increase 1.2%.
• PG&E plans to make further rate reduction proposals next year.

Dive Insight

PG&E's proposal is allowed under a bill passed this summer. California had established a rate structure that froze rate increases for low-use customers, which meant that higher use customers were paying increasingly higher rates to pay for utility investments.

As rates come down for many customers, customers may see less of an advantage in putting solar panels on their rooftops. Solar developers will be closely following these rate changes.