Why are Energy Bills Higher in the Winter?

As the winter chill sets in, you may notice that your energy bill is higher. San Francisco is a winter-peaking region, meaning, energy usage is highest in the winter months compared to any other time of year. This increased energy use can contribute to higher bills in the winter months.

By understanding why our energy bills are increasing, we can make more informed decisions, take actions to reduce energy use, and navigate the colder months with warmth and comfort, all while keeping our utility expenses in check.

Electricity Usage in Your Home
Heating systems, from electric heaters to gas furnaces, are the primary contributors to higher winter energy bills. As temperatures drop, people turn on their heating systems, which uses energy. Houses with less insulation may end up using more energy to achieve the desired temperature.

The shorter and darker winter days also lead to an increased use of overhead lighting. The holiday season can also bring additional energy uses, from holiday lights to at-home gatherings, contributing to energy demand spikes.

PG&E Rate Increase
Another factor that is contributing to higher energy bills this winter has less to do with the season and more to do with the timing of a recent rate increase implemented by PG&E for electricity services.

On January 1, 2024, new PG&E rates for electricity services went into effect. The new rates affect all PG&E customers, including those that receive electricity generation services from Community Choice Aggregation (CCAs) programs like CleanPowerSF. Your average monthly PG&E bill is expected to increase by over $30 per month. This is for both electricity and gas combined.

No Changes to CleanPowerSF Rates
It is important to note that these bill increases are for PG&E’s services only, not the electricity service that CleanPowerSF provides. Charges for CleanPowerSF services, which appear on your PG&E bill, did not change as of January 1st.

CleanPowerSF customers continue to see savings due to lower CleanPowerSF generation rates compared to PG&E. A typical residential CleanPowerSF customer will see about an $8 savings each month by getting their generation service from CleanPowerSF rather than PG&E.

View Our Recent Webinar to Learn More

Interested in learning more about your electricity bill? We’ve got you covered! View our recent webinar “Understanding My Bill” to understand what contributes to seasonal bill changes as well as learn helpful tips and resources for managing your bill year-round. If you ever had questions about your electricity bill, this webinar is for you.