5 Reasons Your PG&E Bill Spiked This Winter (And How to Fix It)

If you felt real “sticker shock” opening your statement, you’re not alone. A high PG&E bill has become a common winter complaint—and in San Francisco, that damp cold can make your home feel chillier than the temperature suggests. Add in recent utility pricing shifts and you get the perfect recipe for higher winter San Francisco heating costs.

The good news: while you can’t control PG&E pricing, you can control how efficiently your home uses energy. Schmitt Heating helps homeowners tighten up comfort, reduce waste, and keep costs from climbing.

Below are five common causes behind Bay Area utility spikes—and practical fixes you can start today.

Reason 1: PG&E Rate Increases & Bill Structure Changes

The issue

Even if your habits didn’t change much, your bill has. PG&E rates have shifted significantly in recent years, and starting March 2026, PG&E is restructuring the electric bill so some costs that were baked into the per-kWh price appear as a separate Base Services Charge line item.

Source: PG&E — Base Services Charge

The fix

If you’re on a Time-of-Use (TOU) plan, timing matters. PG&E has TOU options where electricity is priced higher during 4–9 p.m. and lower outside those hours (depending on your plan).

Source: PG&E — Time-of-Use Rate Plans

Try these energy saving tips you can use right away:

• Run laundry and the dishwasher outside the hours of 4–9 p.m.
• Shift energy-heavy cooking (such as long oven runs and batch cooking) outside peak hours when you can. If you’re cooking during peak hours, choose faster methods for small portions such as a microwave or toaster oven.
• If you have a smart thermostat, avoid big temperature changes during peak hours—gradual adjustments tend to be easier on both comfort and cost.

Reason 2: Your Furnace Is Working Overtime (The Efficiency Gap)

The issue

If your furnace is older, out of tune or struggling with airflow, it may run longer to hit the thermostat target. In San Francisco, the combination of cool temperatures and humidity can make homes feel colder, pushing longer run times.

Common culprits include:

• Dirty filters
• Blower and airflow issues
• Burner/ignition inefficiency
• Thermostat calibration problems
• Closed off or covered registers/grills

When a system can’t move air properly, it’s like driving with the parking brake slightly on—you’ll still get there, but you’ll pay more for it.

The fix

Start with the fastest wins:

• Change your filter (and make sure it fits correctly and isn’t overly restrictive).
• Make sure vents and returns are clear and open.

Then schedule maintenance before the next cold snap. A professional tune-up can:

• Improve efficiency by up to 15%
• Catch small problems before they become expensive breakdowns
• Improve comfort room-to-room

If you’re dealing with frequent cycling, uneven heat, strange smells or noisy operation, those are signs it’s time for an energy-efficient furnace repair.

Reason 3: “Invisible” Energy Thieves (Drafts & Insulation)

The issue

In many SF homes—especially older construction—heat loss can be the real problem. Drafty Victorian windows, attic gaps and poor insulation quietly pull warmth right out of your living space. If you have a forced-air system, duct leakage means you can be paying to heat spaces you don’t utilize.

ENERGY STAR estimates about 20–30% of the air moving through a typical duct system can be lost through leaks, holes, and poor connections.

Source: ENERGY STAR — Duct Sealing

The fix

DIY steps that help immediately:

• Add weather-stripping to exterior doors.
• Use door sweeps or draft stoppers.
• Close fireplace dampers when not in use.

High-impact upgrades (often worth the cost):

• Professional duct sealing (especially if some rooms are always colder)
• Attic insulation improvements
• Airflow balancing so heated air actually reaches the spaces you use

If your system seems to run constantly but you still feel chilly, your home may be losing heat faster than your furnace can deliver it.

Reason 4: Water Heater “Cold Snap” Struggle

The issue

Winter often drives up energy use beyond space heating. When incoming water is colder, your water heater has to work harder to deliver the same shower temperature—especially if your tank is older or the hot-water pipes are uninsulated.

Signs your water heater may be contributing to a bill spike:

• Hot water runs out faster than usual
• You hear popping or rumbling (sediment buildup)
• Water takes a long time to get hot
• You’re relying on “extra hot” settings to feel comfortable

The fix

Try these simple steps:

• Set the water heater to 120°F (a common efficiency/safety target for most households).
• Insulate exposed hot-water pipes.
• Consider an insulating jacket for older tank water heaters.

If you’re seeing inconsistent hot water, water heater maintenance (or replacement planning) can prevent surprise failures—and reduce waste.

Reason 5: Space Heaters Are Quietly Driving Up Your Electric Costs

The issue

It’s easy to assume a small plug-in heater is cheaper than running central heat. But many portable electric space heaters draw around 1,500 watts on high—so hours of use can add up quickly.

In other words, space heaters can be “small” but expensive when used daily, especially during peak-rate hours on TOU plans.

The fix

If you use a space heater, treat it like a short-term comfort tool, not a primary heating plan:

• Use it only in the room you’re in and only when needed.
• Avoid all-day use, especially during 4–9 p.m. peak windows if you’re on a TOU plan.

If your home needs “supplemental heat” to feel comfortable, that’s a clue your central system—or your home’s air sealing/insulation—needs attention.

A properly working “Zone Heating” HVAC system can often keep you comfortable while using less energy than space heaters.

Conclusion

Rates and bill formats may be shifting, but efficiency is still the lever you control. If your bill spiked this winter, don’t assume the only fix is turning down the heat. More often than not, the real culprit is waste — heat slipping out through drafts, leaky ducts or a system that’s working harder than needs to.

That’s exactly what we’re here to help with. Give us a call and we’ll walk through your home, tune up your system and give you straight answers as to where your energy dollars are actually going. Schmitt Heating has been keeping San Francisco homes comfortable since 1901 — we’d love to help you keep more of that money in your pocket this season.

People Also Ask

Why is my PG&E gas bill so high this month?

Usually it comes down to a few things working against you at once: more heating run time during cold spells, recent PG&E rate changes and efficiency issues in your home like drafts, dirty filters or leaky ducts. When the house feels colder than it should, your furnace just keeps running — and that shows up on your bill.

What is the “Base Services Charge” on my PG&E bill?

Starting March 2026, PG&E is changing how your electric bill is structured. Some costs that were previously rolled into your per-kWh rate will now show up as a separate line item called the Base Services Charge. Your total cost may not change dramatically, but the bill will look different than you’re used to.

Source: PG&E — Base Services Charge

How can I reduce my heating bill without turning off the heat?

Start with the basics: change your filter, make sure your vents are clear and seal up any obvious drafts around doors and windows. If comfort varies a lot from room to room, duct sealing is worth a look. And if you’re on a TOU plan, shifting energy-heavy tasks outside the 4–9 p.m. window can make a real difference. When in doubt, a tune-up is the fastest way to find out if your system is running as efficiently as it should be.

Is a heat pump more efficient than a gas furnace in San Francisco?

In a lot of cases, yes — heat pumps tend to perform well in mild climates. But the honest answer is that it depends on your home. Insulation, ductwork, how you use energy day-to-day — all of it factors in. We’re happy to take a look and give you a real-world comparison for your specific situation, not just a generic answer.