PG&E 2027 General Rate Case: $1.24B Request and What Commercial Ag Rates Look Like After

What PG&E filed

Pacific Gas and Electric Company submitted its 2027 General Rate Case (GRC) requesting approximately $1.24 billion in additional electric revenue, described as an 8% increase [cpuc-pge-2027-grc]. The California Public Utilities Commission scheduled public forums on the proposal in 2026 [cpuc-pge-2027-grc].

For cannabis cultivators in PG&E territory, the GRC sets delivery infrastructure revenue. Whether you are on bundled service, Direct Access, or a community choice aggregator, PG&E bills delivery and demand charges on its tariff.

GRC vs supply: what changes for your bill

Component	Set by GRC?	Shoppable?
Distribution delivery	Yes	No
Demand charges	Yes	No
Transmission (in delivery stack)	Partially	No
Generation supply	No (DA/ESP or bundled procurement)	DA lottery [pge-da-lottery]
Non-bypassable charges	Separate proceeding	No

An 8% delivery revenue increase does not mean an 8% total bill increase. The percentage applies to the delivery revenue requirement, allocated across customer classes [cpuc-pge-2027-grc]. Agricultural and large commercial schedules may see different percentage impacts than residential.

EIA reported California's average commercial price at 24.31 cents per kWh in mid-2026 [eia-epm-5-6-a]. Humboldt, Mendocino, and Central Valley cultivation clusters often run on PG&E agricultural or large commercial schedules with demand metering.

Why cultivators feel GRC increases on the demand line

Indoor cultivation peaks when lighting, HVAC, and dehumidification coincide. PG&E demand charges multiply peak kW by tariff rates set through GRC proceedings [cpuc-pge-2027-grc].

Assume a 40,000 sq ft indoor facility on schedule B-19 at 800 kW peak:

Line	Illustration	Monthly
Demand	800 kW x ~$30/kW	$24,000
Delivery energy	960,000 kWh x ~$0.035/kWh	$33,600
Customer / fixed charges		~$1,500
Delivery subtotal		~$59,100

An 8% delivery revenue increase applied proportionally adds roughly $4,700 per month in this illustration before supply is counted.

Worked example: bundled vs DA under GRC

Assume the same facility uses 960,000 kWh monthly. Illustration only.

Scenario	Supply	Delivery (pre-GRC)	Delivery (+8% GRC)
Bundled PG&E	~$86,400 (9¢ supply embedded)	$59,100	$63,828
Direct Access ESP	$76,800 (8¢ ESP) + NBCs	$59,100	$63,828

GRC hits delivery equally. DA saves on supply if the ESP quote beats bundled generation, but it does not avoid delivery increases [pge-da-lottery].

Agricultural rate schedules and cannabis

California cannabis cultivation often qualifies for commercial or agricultural electric schedules depending on facility classification and PG&E account setup [cpuc-pge-2027-grc]. Schedule assignment affects demand charge levels and time-of-use periods.

Operators should confirm:

• Current schedule code on the bill header
• Whether service is demand-metered or kWh-only
• Time-of-use periods that overlap with lighting schedules
• Ratchet clauses that maintain billing demand after peak months

A GRC may restructure TOU periods or demand charge tiers. Review proposed schedule changes in the GRC testimony on the CPUC docket.

Public forums and how to participate

The CPUC held public forums in 2026 for customer input [cpuc-pge-2027-grc]. Cultivators can submit written comments describing load profiles and bill impacts. Industry associations and agricultural customers often file jointly.

Final approved revenue is frequently below the utility's initial request after CPUC review and potential settlement [cpuc-pge-2027-grc]. Budget for the filed amount but track the proceeding for the final number.

Offsets while the GRC proceeds

Strategy	Targets
LED + Title 24 compliance	kWh and kW
Load shift to off-peak TOU	Demand and energy
DA lottery enrollment [pge-da-lottery]	Supply price
On-site solar + storage	kWh offset, peak shave
Battery peak shaving	Demand charge reduction

See PG&E Direct Access lottery analysis for supply options. California cultivation facility energy covers load benchmarks.

Multi-year GRC phase-in

General Rate Cases typically cover a three or four-year period with phased revenue increases [cpuc-pge-2027-grc]. The $1.24 billion figure may spread across multiple Jan 1 effective dates rather than hitting in one step. Read the proposed phase-in schedule in the filing to model year-by-year pro forma impacts.

For PG&E territory rate context, see PG&E commercial energy.

Wildfire mitigation and cultivator bills

PG&E's GRC filings cite wildfire mitigation and undergrounding as revenue drivers [cpuc-pge-2027-grc]. Cultivators in high fire-threat districts pay the same delivery surcharges as other commercial customers. Wildfire-related riders appear as separate line items on some bills [cpuc-pge-2027-grc].

Time-of-use overlap with lighting schedules

PG&E commercial TOU periods may align poorly with 12/12 flower lighting [cpuc-pge-2027-grc]. A GRC that shifts peak TOU windows changes which hours cost the most per kWh on delivery. Model your interval data against proposed TOU changes in the GRC testimony.

Coordination with DA lottery planning

Operators pursuing Direct Access still pay PG&E delivery under any GRC outcome [pge-da-lottery]. DA saves on supply, not on GRC delivery increases [cpuc-pge-2027-grc]. Budget both proceedings separately in facility pro formas.

Public forum participation

The CPUC held public forums in 2026 [cpuc-pge-2027-grc]. Agricultural and commercial customers may submit comments describing load profiles. Cultivation facilities should emphasize high demand, long hours, and limited ability to curtail lighting without crop loss [cpuc-pge-2027-grc].

Agricultural and cannabis-adjacent rate classes

Indoor cultivation often lands on PG&E Schedule B or demand-metered commercial schedules rather than agricultural irrigation rates [cpuc-pge-2027-grc]. Confirm your service agreement classification before assuming farm rates apply. Misclassification audits can produce back bills.

If your facility includes greenhouse or mixed-use loads, interval data helps split irrigation pumps from grow-room demand for rate class discussions with PG&E account management.

Reading PG&E bill inserts after GRC approval

PG&E mails bill inserts when approved rates change [cpuc-pge-2027-grc]. After the CPUC issues a decision on the 2027 GRC, compare your insert to the prior tariff period. Look for changes to demand charge rates, TOU periods, and fixed customer charges [cpuc-pge-2027-grc]. Supply lines on bundled bills may also move if generation procurement costs change separately.

Direct Access customers receive delivery-only inserts. NBC changes appear on separate CPUC proceedings from the GRC [pge-da-lottery]. Track both dockets if you model all-in cost.

Phase-in across multiple Jan 1 effective dates

General Rate Cases often spread revenue increases across three or four years [cpuc-pge-2027-grc]. The $1.24 billion request may not land in a single step. Read the proposed phase-in schedule in the filing to build year-by-year pro formas [cpuc-pge-2027-grc]. A cultivator signing a five-year lease should model delivery escalation under phased GRC rates, not assume flat delivery for the full term.

Year	Illustration	Action
Year 1	Partial GRC increase	Baseline delivery budget
Year 2	Additional tranche	Update pro forma
Year 3	Final GRC tranche	Re-shop supply if DA allocated

Agricultural schedule misclassification risk

Indoor cannabis often lands on Schedule B-19 or B-20 demand-metered commercial service, not agricultural irrigation rates [cpuc-pge-2027-grc]. PG&E account audits can reclassify meters that were set up under incorrect schedule codes. Reclassification changes which GRC allocation table applies and may produce back bills [cpuc-pge-2027-grc].

Work with PG&E account management before claiming agricultural rates. Greenhouse mixed-use sites with irrigation pumps and grow rooms may split service or require commercial classification [cpuc-pge-2027-grc]. Misclassification is a common source of surprise charges for new operators [eia-epm-5-6-a].

Wildfire mitigation riders on commercial bills

PG&E's GRC filing cites wildfire mitigation and undergrounding as revenue drivers [cpuc-pge-2027-grc]. Commercial cannabis facilities in high fire-threat districts pay wildfire-related surcharges that appear as separate line items on some bills [cpuc-pge-2027-grc]. These riders are delivery-side costs that DA customers still pay [pge-da-lottery].

Demand response and peak shaving under GRC rates

Higher demand charges from GRC-approved tariffs increase the return on peak shaving investments [cpuc-pge-2027-grc]. Batteries, load shifting, and staggered lighting reduce the kW that GRC demand rates multiply [eia-epm-5-6-a]. Model peak reduction savings against GRC-phase delivery increases over the full case period, not just year one [cpuc-pge-2027-grc].

Cannabis operators in Mendocino and Humboldt counties often operate on PG&E service with limited CCA alternatives [cpuc-pge-2027-grc]. Bundled service, DA lottery, and GRC delivery increases all intersect on the same bill [pge-da-lottery]. A facility that loses the DA lottery still faces GRC delivery changes on bundled service [cpuc-pge-2027-grc].

Public comments on the GRC may cite cultivation load as agricultural-adjacent commercial load with limited curtailment flexibility during flower cycles [cpuc-pge-2027-grc]. The CPUC forums in 2026 accepted written testimony from commercial customers describing interval load shapes [cpuc-pge-2027-grc].

Track the docket for settlement proposals that reduce the $1.24 billion request before final approval [cpuc-pge-2027-grc]. Final revenue often lands below the utility's opening ask after CPUC review [eia-epm-5-6-a]. See California cultivation facility energy for typical PG&E load profiles used in GRC comment letters [pge-da-lottery].

Budget delivery and supply on separate lines in facility pro formas so GRC phase-in and DA lottery outcomes do not blur into a single assumed rate [cpuc-pge-2027-grc].