The cost to charge electric vehicles will become more expensive with PG&E raising rates for a second time this year.
PG&E would have to raise rates astronomically for it to be cheaper to fill up a gas car versus charging an electric vehicle at home, but the recent electric rate hikes are going to eat into those traditional savings enjoyed by owners of electric vehicles.
Last Thursday, the California Public Utilities Commission approved a rate hike that will increase PG&E bills by roughly $5 a month. That’s on top of the 13% increase in January. A third hike is in the works.
PG&E has said it expects total rate hikes in 2024 will total about $50 more per average customer.
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"Perception is super important for the filling up of any vehicle," said Jack Conness, a policy analyst with Energy Innovation, a nonpartisan think tank in the Bay Area that advocates for policies that help combat climate change. "Driving down the road and looking at a gas station sign seeing $6 a gallon as well as perception of gas is really expensive. PG&E's rates have gone up, but again there's that gas price roller coaster of $5 a gallon, $6 a gallon, and the uncertainty of knowing what it's going to be day to day I think is a much more daunting task than a certain price increase, percentage increase for PG&E rates year over year."
Energy Innovation used a Chevy Bolt and Tesla Model 3 as part of its study to show savings would drop under PG&E's rate hike. Conness did point out that PG&E does offer cheaper rate plans for electricity for drivers who charge their vehicles overnight.
"The major takeaway is every driver's experience and situation are different," Conness said. "There are endless variables – type of vehicle someone drives, what time of the day they will charge, where they are charging, the gas-powered equivalent to compare it to, etc. In our calculation – to make it as straightforward as possible – we used the Tesla Model 3 and Chevy Bolt (the two most popular EV sedans in California) and compared it to the Toyota Camry (the most popular gas-powered vehicle)."
EV owners can use PG&E's EV savings calculator to get the most accurate costs for their situation.
While electric vehicles are still cheaper to maintain and charge, they do cost hundreds, if not thousands, of dollars more to purchase than an equivalent gas-powered car.
