If you live in Northern or Central California and register a battery electric vehicle (BEV) or plug-in hybrid (PHEV), Pacific Gas and Electric (PG&E) will prompt you to switch from the default residential rate to their specialized EV2-A tariff.
With California retail electricity prices among the highest in the continental United States, finding the cheapest charging schedule is critical. While EV2-A drops overnight charging to $0.31 per kWh (compared to $0.44 per kWh on standard E-TOU-C), it comes with a steep afternoon peak price of $0.62 per kWh and completely eliminates the residential baseline allowance credit.
The Contenders: Rate Structure Breakdown
Both EV2-A and E-TOU-C are time-of-use (TOU) plans, but their pricing tiers and peak windows differ significantly:
| Rate Feature | PG&E EV2-A (EV Whole-Home) | PG&E E-TOU-C (Default Residential) | | :--- | :--- | :--- | | Off-Peak Energy Rate | $0.31 / kWh (Midnight to 3:00 PM daily) | $0.44 / kWh (All hours except 4–9 PM) | | Partial-Peak Rate | $0.48 / kWh (3–4 PM & 9 PM–Midnight) | N/A | | Peak Energy Rate | $0.62 / kWh (4:00 PM to 9:00 PM daily) | $0.52 / kWh (4:00 PM to 9:00 PM daily) | | Baseline Credit Allowance | None (Flat tier pricing) | ~$0.08 / kWh discount on Tier 1 usage | | Daily Basic Service Charge | $0.00 / day | $0.00 / day | | Best Charging Window | 12:00 AM – 3:00 PM (15 hours) | 9:00 PM – 4:00 PM (19 hours) |
Vehicle Charging Math: Direct Comparison
For an average electric vehicle with an efficiency of 3.0 miles per kWh driven 10,000 miles per year, the car consumes approximately 3,636 kWh annually or 303 kWh per month.
Assuming 90% of vehicle charging takes place during the lowest-cost off-peak window and 10% during peak/shoulder periods:
- On EV2-A:
- Off-peak charging (273 kWh @ $0.31): $84.63
- Peak/shoulder top-ups (30 kWh @ $0.62): $18.60
- Monthly Vehicle Cost: $103.33 (~$1,240 / year)
- On E-TOU-C:
- Off-peak charging (273 kWh @ $0.44): $120.12
- Peak charging (30 kWh @ $0.52): $15.60
- Monthly Vehicle Cost: $135.75 (~$1,629 / year)
Charging your vehicle on EV2-A generates a direct savings of $32.42 per month ($389 per year) in fuel expenses alone.
You can customize this comparison for your exact annual mileage, vehicle battery capacity, and off-peak percentage using our Interactive Tariff Calculator.
The Catch: Whole-Home Consumption & Baseline Allowances
Because PG&E does not separate your EV charger onto an isolated meter without paying for an expensive secondary service drop (Rate EV-B), the EV2-A rate applies to your entire household.
1. The $0.62 Peak Trap
During Northern California heatwaves, running central air conditioning between 4:00 PM and 9:00 PM consumes an average of 15 to 25 kWh per afternoon:
- At $0.62/kWh on EV2-A, that cooling costs $9.30 to $15.50 per day.
- At $0.52/kWh on E-TOU-C, the same cooling costs $7.80 to $13.00 per day. Over a 30-day summer billing cycle, heavy afternoon AC usage can easily add $50 to $80 in peak penalties, completely erasing the $32/month savings gained from EV charging.
2. Elimination of Baseline Credits
On E-TOU-C, residential customers receive a baseline allocation (typically 200 to 350 kWh per month depending on your climate zone). Electricity consumed within that baseline receives a credit of roughly $0.08 per kWh, lowering your effective off-peak rate to ~$0.36/kWh. On EV2-A, you forfeit this baseline credit entirely.
Decision Framework: When to Switch vs. When to Stay
Who Should Switch to PG&E EV2-A:
- Moderate to High Mileage Drivers: If you drive 10,000 miles or more per year, your high off-peak charging volume will easily overpower minor peak household usage.
- Homes with Solar Panels & Battery Storage: If you have rooftop solar paired with a home battery (like a Tesla Powerwall or Enphase 5P), you can program the battery to discharge between 4:00 PM and 9:00 PM. This avoids the $0.62 peak grid draw while allowing your car to charge off-peak at $0.31 after midnight.
- Smart Thermostat Automation: Households that pre-cool their homes before 4:00 PM and schedule dishwashers/laundry after 9:00 PM thrive on EV2-A.
When to Stay on E-TOU-C:
- Low Mileage Drivers: If you drive under 5,000 miles per year, your vehicle only consumes ~150 kWh/month. The $16/month savings is too thin to justify the risk of $0.62 peak rates.
- Uncontrollable Late Afternoon Household Load: If your family is home cooking dinner, doing laundry, and running medical equipment or older AC units during the 4 PM to 9 PM window, E-TOU-C provides a safer ceiling.
- High Baseline Allowance Regions: Households in inland areas with generous baseline heating/cooling allowances often pay less on E-TOU-C when overall usage is modest.
Next Steps for California Drivers
If you are setting up your charging station, use our EV Charger Installation Cost Calculator to review 200A panel requirements, conduit runs, and local utility rebate programs. To evaluate your complete monthly charging breakdown, visit our Rate Comparison Tool.
Frequently Asked Questions
What is the difference between PG&E EV2-A and E-TOU-C?
EV2-A is a 3-tier whole-home rate designed for EV owners and battery storage with an ultra-cheap off-peak window ($0.31/kWh from midnight to 3 PM) and a high peak penalty ($0.62/kWh from 4 PM to 9 PM). E-TOU-C is a 2-tier plan with moderate pricing ($0.44 off-peak / $0.52 peak) that includes a monthly baseline allowance discount.
Does EV2-A have a baseline credit allowance like E-TOU-C?
No. Unlike E-TOU-C, EV2-A eliminates the PG&E Baseline Allowance credit entirely. Every kilowatt-hour used during peak hours is billed at the full rate without tier-1 discounts.
Can I put my EV charger on a separate meter with PG&E?
Yes, under PG&E rate schedule EV-B. However, installing a separate sub-panel, meter socket, and utility trenching typically costs $2,500 to $5,000, making it economically impractical for most residential homes compared to whole-home EV2-A.
How much does EV charging cost on EV2-A vs E-TOU-C?
For an electric car driven 10,000 miles per year (approx. 303 kWh/month), overnight charging on EV2-A costs approximately $103.33 per month, compared to $135.75 per month on E-TOU-C—saving roughly $389 annually on fuel alone.
Marcus Vance
Lead Energy Analyst & EV Infrastructure Specialist
Marcus has spent over 9 years analyzing domestic electricity tariffs, time-of-use pricing models, and residential renewable integrations across the UK and North American markets. Former consultant for smart grid distributed energy resource pilots.