The impact of wildfires and beneficial electrification on electricity rates in PG&E’s service territory

Building and transport electrification, an essential strategy to California’s carbon reduction goals, requires affordable electricity for customer adoption. We estimate the costs borne by the electric sector for its involvement in the 2017 and 2018 wildfires in Northern California to be significant and cause residential electric rates in PG&E territory to increase from 23 cents/kWh (2018) to 42 cents/kWh (2030). This rate increase could be limited to 35 cents/kWh through proactive transportation and building electrification.