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2023 Rate Updates

What You Need to Know About 2023 Electricity Generation Rate Changes

Pioneer’s new electricity generation rates, effective Jan. 2023, will provide most customers savings of 15% or more compared with PG&E’s rates. Pioneer customers are expected to save a total of $46 million in 2023 simply by choosing Pioneer.

PG&E’s Rate Increases and Changes to the PCIA

During 2022, PG&E increased its rates several times. As a result, customers felt the impact of rising rates, and rate increases will continue through 2026, as a power supply shortage, infrastructure repair and inflation drive energy prices higher.

PG&E has published its intended 2023 rate changes. If approved by the California Public Utilities Commission, PG&E’s pending request would result in a revenue increase of $3.125 billion for 2023 and additional increases of $1.018 billion in 2024, $755 million in 2025 and $561 million in 2026.

Fortunately, Pioneer customers will experience a significant decrease in both the 2017 and 2021 Power Charge Indifference Adjustment (PCIA) vintage fees.
The PCIA is an exit fee charged by PG&E to customers who choose another provider of electricity generation service through direct access or a community choice aggregator (CCA) such as Pioneer. The fee is designed to cover the difference in the market value of energy resources that were already contracted on the customer’s behalf by PG&E and the cost of those resources.

Table Showing Changes in PGE Generation Rate and PCIA Vintages

Placer County customers who have been with us from the start are classified as “2017 PCIA Vintage” in the chart below. El Dorado County customers who joined in early 2021 are classified as “2021 PCIA Vintage.”
2022 Avg.
($/kWh)
Jan. 2023
($/kWh)
Difference
($/kWh)
Difference
(%)
PG&E Generation Rate
$0.12532
$0.14305
$0.01773
14.1%
2017 PCIA Vintage
$0.01969
$0.00289
$(0.01680)
-85.3%
2021 PCIA Vintage
$0.02554
$(0.00397)
$(0.002951)
-115.5%

The PCIA is decreasing because many of the expensive power-purchase agreements PG&E entered into, which are used to calculate the PCIA, have termed out. At the same time, an increase in power supply prices has made existing PG&E assets more valuable. These factors create downward pressure on the PCIA rate.

This is great news for Pioneer customers, who will save money on PCIA and generation rates in 2023.

Pioneer Customers Save Money on Electricity Generation Rates Compared to PG&E

Pioneer’s new electricity generation rates, effective Jan. 2023, will provide savings of 15% or more when compared with PG&E’s rates. Pioneer customers are expected to save a total of $55.2 million in 2023 by choosing Pioneer over PG&E.

Table Showing E-1 Residential Savings on Generation Rates

E-1 Residential
(Based on 650 kWh/month usage)
Placer
(2017 vn.)
El Dorado
(2021 vn.)
PG&E
(Bundled)
Generation Rate ($/kWh)
$0.12872
$0.12872
$0.14305
PG&E Shipping Charges ($/kWh)
$0.17205
$0.17205
$0.17205
PCIA + FFS ($/kWh)
$0.0040
($0.00281)
$0.01039
Total Electricity Cost ($/kWh)
$0.30477
$0.29796
$0.32549
Average Monthly Bill ($)
$198.10
$193.67
$211.57

Pioneer’s 2023 Rate Change

As the cost of energy increased in 2022, Pioneer absorbed the higher costs to provide relief to our customers during a financially difficult year.

While Pioneer is keeping costs lower than PG&E, a slight rate adjustment will be made to bring the cost of service back in line with the rising cost of power. Effective Jan. 2023, Pioneer’s Board of Directors approved a $0.02 per kilowatt-hour increase, which amounts to approximately $12 per month for the average E1-rate household. The average increase for PG&E E1-bundled customers will be more than 15% (approximately $23.64 more) per month. With this rate adjustment, Pioneer customers will still experience an estimated cost savings for electricity of over $25 per month compared with PG&E. This change ensures revenue sufficiency through the 2022-23 fiscal year by addressing the significant increase in current and projected energy procurement costs.

“Inflation, the costs of PG&E litigation and rising costs for energy and natural gas are driving up the cost of our PG&E bills,” said Don Eckert, Pioneer CEO. “Nevertheless, we are doing everything we can to keep electricity generation rates stable while also providing excellent local service, because Pioneer exists to enhance the quality of life for our customers and community.”

Natural Gas Price Increases

Many customers are experiencing higher PG&E bills due to increased charges for natural gas, which is a service provided to you by PG&E. Although Pioneer provides our customers electricity generation and does not manage natural gas, Pioneer’s Board is sensitive to the ongoing financial impact of rising natural gas charges on residents and businesses. The Pioneer Board’s decision to reduce rates for electricity procurement is aimed at helping customers who are facing higher PG&E bills.

Key Information About Choosing Pioneer

A Pioneer customer who has opted out has the option to rejoin the program by opting in. However, if a customer opts out of Pioneer after their first 60 days of service with Pioneer, the customer will be required to remain with PG&E for one year before opting in again, according to state regulations.

In order for a customer to join Pioneer after opting-out, please visit our Opt In page or contact us directly.

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Please complete our annual listening survey. We will use your feedback to improve. As a thank you, we’re randomly selecting four residential survey submissions and two business survey submissions to receive $250 toward their Pioneer bill. For contest rules, visit our survey rules page. Thank you!