PG&E Corp Expects No Electric Rate Increases in 2025, Focusing on Electricity and Gas Distribution.

PG&E Corp forecasts no electric rate increases for 2025. The company specializes in electricity production and distribution, with 74,111 GWh distributed to over 5.6 million customers at the end of 2024. PG&E also provides natural gas transportation and distribution services to over 4.6 million customers.

Pacific Gas and Electric Company (PG&E Corp), a major utility provider in California, has announced that it expects no electric rate increases for the year 2025. This forecast comes as a relief for the company's over 5.6 million electricity customers, who had been facing potential rate hikes. The company, which specializes in electricity production and distribution, has also been providing natural gas transportation and distribution services to over 4.6 million customers.

The company's announcement follows a period of stable energy prices, with residential combined gas and electric bills expected to remain essentially flat for the rest of 2025. PG&E expects these bills to decrease in 2026, signaling a potential reduction in energy costs for its customers. This forecast is based on the company's analysis of energy usage patterns and market conditions.

PG&E has also encouraged its customers to review their energy plans to ensure they are on the lowest-cost rate. The company's Rate Comparison tool allows customers to log into their online accounts and compare different rate plans to find the most cost-effective option. This tool takes into account the customer's last 12 months of energy usage to determine their lowest-cost rate.

While PG&E forecasts no additional electric rate increases for 2025, customers may still see higher bills during the summer months if they use more energy to cool their homes and businesses. However, by switching to a time-of-use rate and shifting some energy use to lower-priced off-peak hours, customers could potentially save even more money.

The company's announcement comes ahead of its fiscal second-quarter earnings report, scheduled for July 31. Analysts expect PG&E to report a profit of $0.41 per share on a diluted basis, up 32.3% from the year-ago quarter. For the full year, analysts expect PG&E's EPS to rise to $1.63 in fiscal 2026, indicating a steady growth trajectory for the company.

PG&E's stock has underperformed the S&P 500 Index and the Utilities Select Sector SPDR Fund over the past 52 weeks, but analysts remain moderately bullish on the company's prospects. With a "Moderate Buy" rating overall, out of 17 analysts covering the stock, 11 advise a "Strong Buy" rating, five give a "Hold," and one indicates a "Strong Sell." The average analyst price target is $20.70, indicating an ambitious potential upside of 51.8% from the current levels.

References:
[1] https://www.marketscreener.com/quote/stock/PG-E-CORPORATION-13946/news/PG-E-Corp-forecasts-no-electric-rate-increases-for-2025-50472438/
[2] https://www.marketscreener.com/quote/stock/PG-E-CORPORATION-13946/news/Compare-and-Save-Switching-Rate-Plan-May-Lower-PG-E-Customers-Bills-50472292/
[3] https://www.barchart.com/story/news/33269631/pg-e-corporation-s-quarterly-earnings-preview-what-you-need-to-know