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Futureproofing Your Business Against CPUC Rate Increase

Electric rate increases are jeopardizing California’s clean and equitable energy goals.

All three Investor Owned Utility (IOU) providers, Pacific Gas and Electric Co. (PG&E), San Diego Gas & Electric Co. (SDGE), and Southern California Edison (SCE) are pushing for electric rate increases. Although the California Public Utilities Commission (CPUC) is yet to greenlight them, other utility providers are hiking their rates to keep pace with IOUs.

In fact, average utilities cost in California have seen a massive 68% rise in costs between 2019 and 2023 in areas under the service of IOUs. Meanwhile, businesses sourcing electricity from non-investor owned utility providers have also seen a 25% increase in spending.


There’s no denying that electric costs going up, and no consumer or business has escaped these effects.


The California Conundrum: What’s Happening?


California’s frantic pace to achieve its clean energy goals was well-intentioned. But it led to the rapid closing of traditional power plants. While this marked a shift towards cleaner, greener, and renewable power sources, it had a downside.


The state did not have the infrastructure to utilize renewable sources to their full potential. Then there came COVID. As offices shut down, these foundational flaws remained undetected. After all, there was enough power to cater to limited commercial demand.


The California Conundrum: What’s Happening?

Post-pandemic, utility providers felt the pinch in using natural resources to generate power individual and commercial entities experienced electric costs going up. Natural gas, in particular, saw a 300% price hike in 2023.


California’s dated transmission and distribution structure also intensified the problem. The situation snowballed, with utility providers pressing for an increase in tariffs.


What Electric Rate Increases Means for Businesses


If implemented, PG&E’s rate increase will result in a 3.3% rise in commercial electric rate increases for small and medium businesses. Big businesses will have a 6.4% increase. All commercial institutions can expect a 7.8% increase in utility bills if CPUC approves this electric rate in California.


And this is just one of California’s three key IOUs. SCE and SDGE have also come forward with demands.


This isn’t the first time that rising utility rates have become a cause of concern for grid-tied users in California. The problem is, the future of all ratepayers is at greater stake than ever before.


Even other options, like CCAs, municipal utilities, or direct access, cannot help businesses make significant savings. The underlying causes of the commercial electric rate increases are complex. There’s no magical solution that can reverse its debilitating effects overnight.


So imagine the ramifications future rate increases could have on any business, especially ones with high energy consumption, such as manufacturing.


The only way to escape the brunt of rising commercial electric rate in California is to futureproof your business’s energy dependency.


What Electric Rate Increases Means for Businesses


How Businesses Can Manage Electric Rate Increases

Businesses must assess their energy needs and reduce dependence on the grid. This involves extensive research, analysis, and planning to overcome unique challenges and implement energy optimization solutions that drive tangible results.


Downsizing overall consumption and shifting to energy-saving alternatives can help. For example, lighting makes up 17% of the total electricity consumption in commercial buildings. Optimizing utilities and switching to renewable sources can cut down on expenses.


Installing a robust solar system and investing in a solar storage unit can help enterprises produce and store enough electricity for future use. This will help maximize resources and make the most of the initial investment.


NGR Incentives, an energy consulting service can help futureproof businesses against commercial electric rate increases in California.


Building An Energy Efficient Future with NGR Incentives

NGR Incentives is dedicated to helping you cut down operating costs and improve your bottom line through strategic energy optimization.


We offer two types of services you can avail of independently or as an end-to-end solution to the increase in commercial electric rate:





Customized LED Lighting


We specialize in crafting bespoke LED lighting solutions that maximize productivity while reducing energy consumption. LEDs are 90% more energy efficient than traditional bulbs and last 25x longer. With the least carbon footprint of all lighting options currently available in the market, LED offers 50% to 70% energy savings.


LED is the way to go for any business looking to cut down power consumption without compromising on utilities.



The best part is that our commercial lighting solutions can be retrofitted into old offices and warehouses or installed in newly-constructed spaces. Share your requirements with us, and we will offer the most efficient option.


Building An Energy Efficient Future with NGR Incentives


Energy Consulting

We will analyze your energy usage data to identify consumption patterns and create a strategic plan that cuts down on utility excesses. Your unique requirements will inform our approach, and we offer customized solutions to all clients.


If you’re keen on understanding your energy needs and taking a proactive approach to your expenses, book a consultation with us.


Make the Most of Commercial Electric Rate

California is all set to experience another wave of utility pricing changes. Given the current state of affairs, the future is sure to be more expensive. Before the average utilities cost in California skyrockets and impacts your bottom line, futureproof your business. Create a strategy with enough potential to fulfill your immediate and long-term requirements.


Contact NRG Incentives today for energy optimization solutions that make a difference.


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