Trystan Casey
California has several electricity providers, including Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E), and Southern California Edison (SCE). PG&E is headquartered in Oakland, California, and provides natural gas and electricity to 5.2 million households in the northern two-thirds of the state. PG&E is one of six regulated, investor-owned electric utilities (IOUs) in California, the others being PacifiCorp, San Diego Gas & Electric, Bear Valley Electric, and Liberty Utilities. SDG&E is responsible for delivering electricity to San Diego and Orange County, although there are other providers in the region known as Community Choice Aggregators (CCAs) that purchase electricity on behalf of homes and businesses. SCE provides electricity rebates and incentives to help manage electricity costs.
| Characteristics | Values |
|---|---|
| Name | Pacific Gas and Electric Company (PG&E) |
| Headquarters | Oakland, California |
| Customers | 5.2 million households |
| Service Area | Northern two-thirds of California |
| Services | Natural gas and electricity |
| Parent Corporation | PG&E Corporation |
| Market Capitalization | $34.9 billion (as of March 10, 2025) |
| Year Established | October 10, 1905 |
| Community Choice Aggregators (CCAs) | Offered in local communities throughout the state |
| Other Electric Load-Serving Entities (LSEs) | Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), Liberty Utilities, and more |
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What You'll Learn
Who are the main providers?
California's electricity providers are known as Electric Load-Serving Entities (LSEs). There are dozens of LSEs serving different areas of California.
The three largest investor-owned utility companies in California are Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E), and Southern California Edison (SCE). PG&E is headquartered in Oakland, California, and provides natural gas and electricity to 5.2 million households in the northern two-thirds of the state. PG&E has been in operation since 1905 and was the United States' "largest electric utility business" by 1984. However, the company has faced financial difficulties in recent years, filing for bankruptcy protection in 2019. SDG&E is responsible for delivering electricity to San Diego and Orange County, although it is not the only electricity provider in the region. SCE provides electricity rebates and incentives for lighting, food service technology, HVAC, air conditioning, and related electric appliances and systems to help manage electricity costs.
Other notable LSEs in California include Liberty Utilities, Bear Valley Electric, PacifiCorp, and the Power Enterprise of the San Francisco Public Utilities Commission (CCSF).
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What are the costs?
The cost of electricity in California depends on several factors, including the amount of electricity consumed, the type of rate plan, the time of use, and the specific electric company's rates. Here is a breakdown of the costs associated with electricity in California:
Usage-Based Costs:
The amount of electricity consumed is a significant factor in determining the cost. The more electricity you use, the higher your bill will be. This is usually measured in kilowatt-hours (kWh), and the rate can vary for residential, commercial, and industrial customers.
Rate Plan Options:
Electricity providers in California offer different rate plans, and your choice can impact your costs:
- Variable Rate Plan: The rate fluctuates based on the wholesale price of electricity, which is determined by the cost of power generation.
- Demand Charge Electric Rate: You are billed based on the maximum amount of power you use over a specific time period (e.g., an hour or fifteen minutes) within a month. This plan typically results in a lower overall consumption rate, and installing a solar system can further reduce costs.
- Time-of-Use (TOU) Rates: These plans encourage off-peak hour usage by offering lower rates during nights and weekends, with higher rates during peak hours when demand is high. California has been increasingly adopting TOU rates as part of its commitment to sustainability.
Electric Company Rates:
Different electric companies in California may offer varying rates. Major utility companies like Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) are primary providers in their respective regions. It's essential to compare rates and plans offered by different companies to find the most cost-effective option.
Cost-Saving Opportunities:
There are several ways to save on electricity costs in California:
- Community Solar Projects: Subscribing to a community solar project can save you 5-15% on your annual electricity costs. You'll receive two separate bills: one from your utility company and one from the solar provider, with credits for the energy generated by your share of the project.
- Energy Efficiency: Investing in energy-efficient products, such as smart thermostats, can lower your monthly bills. Some companies offer rebates and discounts on these products.
- Rebates and Programs: Many electric companies offer rebates, programs, and incentives to help reduce energy usage and costs. For example, the Energy Savings Assistance Program (ESA) provides no-cost weatherization services for income-qualified renters and homeowners.
- Home Energy Audits: Conducting a home energy audit can help identify energy waste and suggest upgrades to boost efficiency and lower bills.
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What is the process for switching providers?
California has a deregulated energy market, meaning that consumers have the power to choose their energy providers. Since 1998, most Californians have been able to choose the company they buy electricity from. This means that if you are unsatisfied with your electricity rates or plan features, you can explore other options and switch energy providers.
The process of switching electricity providers is straightforward and can be done in just a few minutes. Firstly, you should compare different electricity companies and plans to find the one that best suits your needs. You can use websites such as ElectricRate or Choose Energy to compare electricity rates and plans.
Once you have found a new provider, you will need to confirm your decision to switch with an independent third party. The new company will then take care of the switch, and your service will remain connected throughout the process. The switch usually takes one billing cycle, so your next bill will most likely be from your new supplier.
It is important to note that if you have a fixed-rate plan with your current provider, you may be charged an early termination fee (ETF) if you switch to another company. Additionally, companies are required to provide written notice of price, terms, and conditions, and you have three days to cancel the contract after signing it. Your customer and billing information will be kept confidential throughout the process.
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What rebates are available?
California has a multitude of electric companies, each with their own unique rebate and incentive programs. Here is a detailed list of some of the rebates available from various electric companies in California:
Southern California Edison (SCE)
SCE offers electricity rebates and incentives for lighting, food service technology, HVAC, air conditioning, and related electric appliances and systems to help manage electricity costs. They also offer the SCE Marketplace, which allows customers to research energy-saving products, compare appliances, and calculate savings for switching to more efficient models. SCE also participates in the Golden State Rebates program, which provides instant rebate coupons for air conditioners, smart thermostats, electric heat pump water heaters, and gas water heaters. Additionally, SCE offers a $75 bill credit for enrolling an eligible smart thermostat in a qualifying demand response program. For customers in Tier 2 or Tier 3 high fire-risk areas, SCE provides rebates for purchasing qualified Electric Portable Power Stations.
Pacific Gas and Electric Company (PG&E)
PG&E is one of the electric companies in California that offers rebates and incentives for its customers. While specific details of their rebate programs are not readily available, PG&E mentions exploring PG&E rebates for your home on their website. They also participate in the Golden State Rebates program.
San Diego Gas & Electric (SDG&E)
SDG&E is the implementing partner of the Golden State Rebates program, which offers instant rebate coupons for certain appliances.
Liberty Utilities (CalPeco)
Although specific rebate details are not readily available, Liberty Utilities is mentioned as one of the electric companies in California.
Alameda Municipal Power (AMP)
AMP provides rebates of up to $6,000 for the purchase of a pre-owned electric vehicle (EV) with a purchase price below $40,000.
Burbank Water and Power (BWP)
BWP offers a rebate of up to $1,000 for the purchase of a pre-owned EV.
Central Coast Community Energy (CCCE)
CCCE offers rebates of up to $4,000 for the purchase of new or pre-owned EVs or electric motorcycles. They also offer a $750 rebate for Level 2 EV chargers and an additional EV Readiness Rebate of up to $4,000 for related electrical upgrades.
Pasadena Water and Power (PWP)
PWP offers an additional $250 rebate for eligible EVs purchased or leased from a Pasadena dealership. Customers participating in PWP's income-qualifying programs may receive an additional $1,000 rebate, totaling $1,500.
Self-Generation Incentive Program (SGIP)
SGIP is a statewide incentive for battery storage, providing a rebate for installing a battery storage system designed to function during a power outage. The rebate value depends on the utility company, battery size, and whether the customer is low-income or lives in a high-fire-risk area.
25D Residential Clean Energy Tax Credit
This federal tax credit provides a 30% rebate on the cost of new battery storage systems sized 3kWh and larger.
25C Energy Efficient Home Improvement Tax Credit
This federal tax credit provides a rebate for electrical panel upgrades needed for electrification projects like heat pumps and heat pump water heaters.
It is recommended to visit the websites of these electric companies and programs to obtain the most up-to-date and accurate information regarding their rebate and incentive offerings.
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What is the impact of wildfires?
In California, the main electric companies are the Pacific Gas and Electric Company (PG&E), the San Diego Gas and Electric Company (SDG&E), and Southern California Edison (SCE). These companies are working to reduce the risk of wildfires and prevent power shutoffs. Wildfires have a significant impact on the environment and communities in California. They emit methane and other greenhouse gases, contributing to climate change and creating a vicious cycle of drier conditions that fuel more fires. The impact of wildfires on air quality is a growing concern, as wildfire smoke contains fine particles, ozone, and nitrogen oxides, which can have negative effects on public health.
The state of California is taking steps to address the impact of wildfires on air quality and public health. For example, they are protecting forests, increasing public awareness of proper land management strategies, and promoting efforts to maintain good air quality. Additionally, California has implemented a shutoff reduction law, which requires utilities to identify circuits that have been subject to frequent power shutoffs and to make improvements to reduce the need for future power shutoffs. Utilities are also working on hardening projects to make electrical equipment more fire-resistant and reduce the risk of fires starting from equipment.
The impact of wildfires goes beyond the immediate destruction of land and infrastructure. Wildfires can also have long-lasting effects on the environment and communities in the affected areas. They can lead to soil erosion, water quality issues, and the displacement of wildlife, which can have knock-on effects on ecosystems and human activities such as agriculture and tourism. Wildfires can also have significant economic impacts, as the cost of fighting fires, rebuilding infrastructure, and recovering from the damage can be substantial.
Moreover, wildfires can have social and cultural impacts on communities. They can lead to the loss of homes and displacement of residents, disrupting social networks and support systems. Wildfires can also destroy cultural and historical sites, resulting in the loss of important cultural heritage and traditions. The mental health and well-being of individuals in affected communities can also be impacted, as people may experience trauma, stress, and anxiety due to the loss of loved ones, property, or livelihoods. Overall, the impact of wildfires is far-reaching and requires a comprehensive approach to mitigate and manage the risks effectively.
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Frequently asked questions
The three big electricity companies in California are Pacific Gas and Electric Co. (PG&E), San Diego Gas & Electric Co. (SDG&E), and Southern California Edison (SCE).
The Pacific Gas and Electric Company (PG&E) is the leading electricity company in California. It provides natural gas and electricity to 5.2 million households in the northern two-thirds of the state.
Southern California Edison (SCE) is the electricity company in Southern California. It provides electricity rebates and incentives to help manage electricity costs.
San Diego Gas & Electric (SDG&E) is the electricity company in San Diego and Orange County. However, there are other providers in the region, known as Community Choice Aggregators (CCAs), that purchase electricity on behalf of homes and businesses.
