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PG&E Baseline Allowance Explained

Last updated: January 2026

PG&E's baseline allowance is a fundamental concept that affects every residential customer's bill. It represents the amount of electricity the California Public Utilities Commission (CPUC) considers necessary for basic household needs, and it determines how much of your usage is charged at the lowest tier rate.

Understanding your baseline is essential because exceeding it means paying significantly higher rates for additional electricity.

How Baseline Works

Your baseline allowance is calculated based on:

  • Climate Zone: PG&E has multiple baseline territories (P, Q, R, S, T, V, W, X, Y, Z) based on local climate
  • Season: Summer (May-October) vs. Winter (November-April)
  • Heating Source: All-electric homes get a higher baseline

For example, customers in hot inland areas (like the Central Valley) receive higher baseline allowances than those in mild coastal areas (like San Francisco).

Finding Your Baseline

Your baseline allowance appears on your PG&E bill. Look for:

  • "Baseline Quantity" or "Baseline Allowance" in the usage details
  • Your baseline territory letter (P through Z)
  • Daily baseline allocation in kWh

Multiply your daily baseline by the number of days in your billing period to get your total baseline allowance for that bill.

Tier Pricing Impact

Once you exceed your baseline:

  • Tier 1: Usage up to 100% of baseline at the lowest rate
  • Tier 2: Usage from 101-400% of baseline at a higher rate

The difference between tiers can be $0.10 or more per kWh. On a bill with 1,000 kWh of usage, this can mean $50-100 in additional charges if you're mostly in Tier 2.

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The "Total Amount Due" on your bill

Usually labeled "Total kWh" or "Usage"

Disclaimer: This tool provides a rough estimate based on typical residential rates. It does not account for fixed charges, demand charges, time-of-use pricing, taxes, fees, or other bill components. Results are for informational purposes only and should not be considered financial or legal advice. We cannot determine billing accuracy without reviewing your full bill.

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Frequently Asked Questions

How do I find my PG&E baseline territory?

Your baseline territory letter (P through Z) appears on your PG&E bill in the usage details section. You can also look it up on PG&E's website by entering your zip code.

Can I get a higher baseline allowance?

Yes, if you have an all-electric home (no gas service), you qualify for a higher baseline. Medical baseline is also available for customers with qualifying medical conditions requiring additional electricity.

Why does my baseline change between summer and winter?

Baseline allowances are adjusted seasonally to reflect typical heating and cooling needs. In most areas, winter baselines are higher to account for electric heating, while summer baselines may be higher in hot inland areas.