PG&E Baseline Allowance Explained: How It Changes Your Rate

PG&E's baseline allowance is a monthly allotment of electricity at a lower rate, designed to cover essential household use. Once you exceed it, you pay a higher per-kWh price for every additional kilowatt-hour. The size of your allowance and the rates you pay depend on your rate plan, your climate territory, and the season. This is why two neighbors on the same plan can pay different per-kWh prices for identical usage.

What is PG&E baseline allowance?

Baseline allowance is a tiered-rate system. PG&E divides your monthly electricity use into two tiers:

• Tier 1 (Baseline): Your first block of kWh each month at a lower rate.
• Tier 2 (Above Baseline): Any usage beyond your allowance at a higher rate.

The idea is to keep essential electricity affordable while charging more for discretionary consumption. Your baseline allowance is not a cap on usage; you can use as much as you want, but you'll pay the higher Tier 2 rate once you exceed the allowance.

Key facts

• Plan E-1 (Flat Rate) has an approximate baseline allowance of 350 kWh/month, with Tier 1 at $0.32561/kWh and Tier 2 at $0.40702/kWh.
• Plan E-TOU-C (Time-of-Use) baseline allowance is 7.2 kWh/day in summer (June-September) and 10.2 kWh/day in winter (October-May).
• On E-TOU-C, you also receive a baseline credit of $0.08140/kWh for usage within your allowance.
• Summer peak rates on E-TOU-C (4-9 PM, June-September) are $0.52240/kWh; off-peak is $0.39940/kWh.
• Winter peak rates on E-TOU-C (4-9 PM, October-May) are $0.39757/kWh; off-peak is $0.36757/kWh.
• These rates are effective March 1, 2026.

How does baseline allowance vary by season?

On time-of-use plans like E-TOU-C, your baseline allowance changes with the season. Winter months (October through May) give you a larger daily allowance because heating and cooling loads are typically lower. Summer months (June through September) provide a smaller allowance because air conditioning and cooling demand rise.

For example, on E-TOU-C in territory P, you receive 10.2 kWh per day in winter but only 7.2 kWh per day in summer. Over a full month, that's roughly 306 kWh in winter versus 216 kWh in summer. If you use the same amount of electricity in both seasons, your summer bill will show more usage above baseline and therefore more charges at the higher Tier 2 rate.

Flat-rate plans like E-1 do not change their baseline allowance by season. The allowance stays at approximately 350 kWh per month year-round.

Why do climate territory and rate plan matter?

Your baseline allowance is set based on your climate territory. PG&E divides its service area into multiple territories, each with different weather patterns and typical household consumption. A territory in a hot inland valley will have a different baseline than a cooler coastal area, because cooling needs differ.

Your rate plan also determines how baseline is applied. On E-1, you get one simple allowance per month. On E-TOU-C, your allowance is expressed as a daily amount that varies by season, and you also get a baseline credit that reduces your effective rate within the allowance window.

How baseline affects your per-kWh cost

Your effective per-kWh rate is not a single number; it depends on how much you use.

On E-1:

• If you use 250 kWh in a month, all 250 kWh are charged at the Tier 1 rate of $0.32561/kWh (you stay within your 350 kWh allowance).
• If you use 400 kWh in a month, the first 350 kWh are charged at $0.32561/kWh, and the remaining 50 kWh are charged at $0.40702/kWh (you exceed your allowance).

On E-TOU-C, the calculation is more complex because rates also depend on time of day. Usage within your daily allowance receives the baseline credit of $0.08140/kWh, which effectively lowers your rate. Usage above the allowance is charged at the peak or off-peak rate depending on when you use it.

This is why two neighbors using identical amounts of electricity can see different per-kWh charges: one may stay within baseline while the other exceeds it, or one may use more during peak hours while the other shifts usage to off-peak.

Flat rate vs. time-of-use baseline comparison

Feature	E-1 (Flat Rate)	E-TOU-C (Time-of-Use)
Baseline allowance	~350 kWh/month (fixed)	7.2 kWh/day summer, 10.2 kWh/day winter
Tier 1 rate	$0.32561/kWh	Varies by time; baseline credit $0.08140/kWh
Tier 2 rate	$0.40702/kWh	$0.52240/kWh (summer peak), $0.39940/kWh (summer off-peak), $0.39757/kWh (winter peak), $0.36757/kWh (winter off-peak)
Seasonal change	No	Yes
Peak/off-peak	No	Yes (4-9 PM peak)
Best for	Low, predictable usage	Households that can shift usage away from 4-9 PM

How to estimate your baseline usage

If you're on E-1, your baseline is straightforward: approximately 350 kWh per month. Compare your typical monthly usage to this number. If you consistently use less, you'll stay in Tier 1. If you regularly exceed it, expect to pay the higher Tier 2 rate on the overage.

If you're on E-TOU-C, multiply your daily allowance by the number of days in the month. In summer, 7.2 kWh/day times 30 days equals 216 kWh of baseline allowance. In winter, 10.2 kWh/day times 31 days equals roughly 316 kWh. Track your usage against these numbers to see how often you exceed baseline.

You can find your actual baseline allowance and current rates on your PG&E bill or by logging into your online account. Your bill will show your usage broken down by tier.

What happens if you exceed baseline?

Exceeding your baseline allowance does not trigger penalties or service restrictions. You simply pay the higher Tier 2 rate for every kWh above the allowance. On E-1, that's $0.40702/kWh instead of $0.32561/kWh. On E-TOU-C, the rate depends on whether the usage occurred during peak or off-peak hours.

For households that consistently exceed baseline, switching to a different rate plan may lower your bill. My Big Bill can show you which plan would cost least for your actual usage pattern.

Frequently Asked Questions

Does baseline allowance reset each month?

Yes. Your baseline allowance is a monthly allotment. Any unused allowance does not roll over to the next month. On E-1, you get a fresh 350 kWh allowance each month. On E-TOU-C, your daily allowance resets each day.

Can I increase my baseline allowance?

No. Your baseline allowance is set by PG&E based on your rate plan and climate territory. It is not adjustable by the customer. If you believe your allowance is incorrect for your territory, contact PG&E to verify your territory classification.

Why is my neighbor's per-kWh rate different from mine if we're on the same plan?

Because baseline is tiered. If your neighbor uses less than you, more of their usage falls within the lower Tier 1 rate. If they use more, more of their usage is charged at the higher Tier 2 rate. On time-of-use plans, the time of day you use electricity also matters. Someone who uses more during off-peak hours will have a lower effective per-kWh rate than someone who uses the same amount during peak hours.

Is baseline allowance the same in summer and winter?

On E-1 (Flat Rate), baseline stays at approximately 350 kWh per month year-round. On E-TOU-C (Time-of-Use), baseline is larger in winter (10.2 kWh/day) than in summer (7.2 kWh/day) to account for different seasonal cooling and heating needs.

How do I know if I'm exceeding my baseline?

Check your PG&E bill. It will show your total usage and break it down by tier. If you see charges at the Tier 2 rate, you exceeded baseline that month. Over time, tracking which months you exceed baseline helps you understand your usage pattern and whether a different rate plan might save you money.