3 Reasons Your PGE Bill is Insanely High

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If your PG&E electric bill felt insane in August, you’re not alone.

Our readers have been reporting bills that are 2 to 3 times higher than normal. One local called their bill "criminal," and our readers feel like they’re being robbed.

Personally, I dealt with a PG&E bill that was over $1,400 in August, so I know the pain that many people are going through.

Here are three reasons why your PG&E bill was so high this month.

PG&E Rate Increases

Over the last several years, PG&E has been consistently increasing its rates.

This started with rate increases to cover the cost of undergrounding power lines following the devastating wildfires in 2018.

The rate increases have continued, with another increase going into effect earlier this year, of around 13%.

These increases set the baseline cost of power higher than it's been in recent memory. PGE is now California's most expensive power provider.

Combined with the other factors we’ll get into below, this made for a very pricey mixture.

Record Temperatures

July, whose electric usage is charged in August, was one of the hottest months on record worldwide. Here in California, it was our hottest month ever.

Many parts of the state suffered through temperatures as high as 111°. Here in Lafayette, California, where we are, temperatures reached 107°.

Air conditioning is one of the most expensive items on most people’s electric service. Using the AC for longer tends to lead to higher bills.

Amid record temperatures, even consumers who rarely use their AC had no choice. Extreme heat can kill, and it is a good idea for consumers to turn up the AC during the heat wave.

All of that extra air-conditioning usage came at an economic cost, though. Personally, my air conditioner ran for up to 18 hours per day, keeping the room upstairs cool for my three little kids.

Air conditioners use thousands of watts, and at the end of the month, that added up to much higher electric usage for many consumers.

Because many PG&E customers are on tiered usage and time-of-day usage plans, each kilowatt-hour becomes more expensive as you use more power.

That means that with more AC use, people’s bills did not go up in a straight line. Instead, they went up on an exponential curve, like a runaway train.

That meant that people weren’t just paying somewhat more to run their AC, but in many cases, two or three times more than they would typically pay, because they used up their baseline power allotment and moved into higher-priced tiers.

Summertime Living

Beyond using the air conditioner, summer is a higher-usage time for electricity in general.

The days are longer, so people spend more time active and doing things, rather than sleeping or winding down.

Over the summer, you might have people over, hold a big cookout, or otherwise use your home more.

That’s wonderful, but it also results in more hours using the air conditioner, more loads of dishes, more laundry, and the like. Add all those things up, and the result is higher electric usage, even beyond the higher cost of AC.

Add to that the fact that many people with flexible working arrangements are able to work from home more over the summer, and electric costs go up even further.

People who have a pool can add insult to injury. All the pumps, filters, heaters, and other gadgets associated with using your pool over the summer add even more to your electric bill.

All these factors combined – higher base costs, usage related to extreme temperatures, and the simple fact that it’s summer – resulted in a perfect storm of electric costs. That storm hit in July, and now many people are feeling it.

If you’re struggling to pay your bill, PG&E does have some assistance programs available. We will be covering those soon.

In the meantime, just know that you're not the only one feeling the pain.