State Energy Guide

California Commercial Energy & Utility Guide

Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in California.

Energy Market Overview

Regulated MarketCA

California operates a regulated electricity market following its energy crisis in the early 2000s. The three major investor-owned utilities — PG&E, SCE, and SDG&E — serve as both generation providers and distribution companies. Commercial customers can access Community Choice Aggregation (CCA) programs as an alternative supply option, and Direct Access is available on a limited basis.

What this means for property managers:

In California's regulated market, your utility provides both generation and distribution at rates set by the state public utility commission. While you cannot choose your electricity supplier, you can optimize costs through rate schedule analysis, demand management, and participation in utility efficiency programs.

Regulated Market

Rates are set by the public utility commission. No supplier choice available.

Average Commercial Energy Rates

Avg. Commercial Electric

Avg. Commercial Gas

Rising

Rates increased 15% over two years due to wildfire mitigation costs, grid hardening programs, and the transition to time-of-use rate structures for all commercial accounts.

Energy Regulations & Benchmarking

State Benchmarking Required

California has the most comprehensive energy regulation framework in the nation. AB 802 requires annual energy benchmarking for all commercial buildings over 50,000 sqft via ENERGY STAR Portfolio Manager. Title 24 establishes building energy efficiency standards updated every three years. SB 1383 mandates organic waste reduction affecting commercial building operations. The CPUC regularly adjusts rate structures, and the state is aggressively pushing electrification through heat pump mandates and NEM 3.0 solar policy changes.