How to Lower Your Winter Heating Bill in the Bay Area

Cut heating use, then cut the bill with the right programs

Home › Winter Heating Help › Lower winter heating bills

A December PG&E bill can be a shock after a mild autumn. In most Bay Area homes the jump comes from using more gas or electricity for heat, not from a sudden price hike. That is good news, because usage is the part you control. This page covers why winter bills rise, the settings and fixes that cut heating use without making you cold, and the PG&E and state programs that lower the bill itself if money is tight.

It is part of our Bay Area Winter Heating Help Center. If the bill spiked because the heater is acting strangely, start with the "Is something wrong?" section below.

Why winter bills jump

Usage, not a price spike

PG&E's most recent gas rate changes were small. Gas rates went down about 3.0% for non-CARE customers on 1 January 2026 (PG&E gas rate advisory, Jan 2026), then rose about 0.3% on 1 March 2026 (PG&E gas rate advisory, Mar 2026). So when a winter bill doubles, look first at how much heat the home used and how long the heater ran.

The baseline allowance and tiers

PG&E describes the Baseline Allowance as "a measure of energy sold at the lowest price." Use beyond it costs more. PG&E's winter season for electric baseline runs 1 October to 31 May, and for gas November through March. All-electric homes get a larger winter electric allowance, roughly 60 to 70% of average use (PG&E Baseline Allowance). If you heat with a heat pump, make sure PG&E has you on the all-electric baseline.

Bay Area homes leak heat

Many older Bay Area homes have ducts running through vented attics and crawlspaces, single-pane windows and thin or missing wall insulation. Cold inland valley nights in San Jose, Livermore or Gilroy make the heater run much longer than a foggy coastal evening does. A leaky duct or a draft you can ignore in October becomes real money by January.

Free and low-cost fixes that cut heating use

Lower the thermostat when you sleep or are out. A lower setpoint shortens heater run time. A steady, modest setback every night saves more than occasional big swings. Our guide to thermostat settings that save gives specific schedules.
Use the schedule you already have. Most programmable and smart thermostats sit on "hold." Set a weekday and weekend schedule that matches when people are home.
Change the filter. A clogged filter makes the blower run longer and can make a furnace overheat and cycle. Check it monthly in winter.
Keep supply registers and return grilles clear. Furniture and rugs over registers starve rooms and make people turn the thermostat up.
Seal the obvious drafts. Weatherstrip doors, close the fireplace damper when there is no fire, and close curtains at night.
Do not heat the whole house to fix one cold room. Find out why that room is cold. See cold rooms and uneven heating.

Heat pump settings that matter

Heat pumps usually heat most efficiently when held at a steady temperature. A deep overnight setback followed by a big morning jump can bring on the backup electric heat strips, which cost far more to run. If your thermostat shows "aux" or "emergency heat" often in mild weather, have the settings and system checked. Our heat pump winter guide explains defrost, aux heat and what is normal.

Space heaters are not a savings plan

Running an electric space heater in one room while the central system still heats the house simply adds to the bill. If you do use one, keep it 3 feet from anything that can burn and plug it straight into a wall outlet.

Fixes that pay back over several winters

Duct sealing. Leaks in attic and crawlspace ducts send heated air outdoors before it reaches rooms. A technician can find and seal the worst of them.
An annual tune-up. California's public health department advises: "Have a qualified technician inspect your furnace every year" (CDPH). A clean burner, flame sensor and blower run the way they should. Our maintenance service covers furnaces, heat pumps and mini-splits.
A smart thermostat, if yours cannot hold a schedule.
A heat pump, when the old furnace is due. See the incentives section below and our page on gas furnace rules and heat pumps.

For more on bills, read how to lower your PG&E bill with HVAC strategies and why your PG&E bill suddenly increased.

PG&E and state programs that lower the bill

If money is tight, these programs reduce what you pay. Each link goes to the official page, where you can check income limits and apply.

Program	What it does	Good to know
CARE	"A monthly discount of 20% or more on gas and 35% or more on electricity" compared with non-CARE bundled customers	Income-qualified. Discounts both gas and electricity.
FERA	An 18% monthly discount on electric rates	Electric only: "FERA does not offer a discount on gas rates." Income-qualified.
Medical Baseline	"An additional allotment of energy every month at the lowest price available on their rate"	Heating or cooling needs for a medical condition can qualify. A medical practitioner must certify.
REACH	A credit of up to $800 toward the past-due part of your bill	Requires a 15-day or 48-hour disconnection notice and income at or below 200% of the federal poverty level. Once per calendar year.
Budget Billing	Spreads your costs evenly using a rolling average of about 12 months	Free, but "not a savings program." You need a history of on-time payments.
LIHEAP	Federal help with energy bills, run in California by the Department of Community Services and Development through local agencies	Funding is limited, and local providers prioritize "particularly vulnerable households."

If you are already behind

Contact PG&E before the due date and ask which assistance programs fit your situation.
If you have received a 15-day or 48-hour disconnection notice, ask about REACH (PG&E REACH).
Contact your local LIHEAP provider through CSD's "Find Services in Your Area" page (CSD).
Sign up for CARE (or FERA, for electric) so the next bills are lower.

Never heat with a gas oven, stovetop or grill to save money. They can fill the home with carbon monoxide. If a CO alarm sounds, get out first, then call 9-1-1. Our gas and carbon monoxide page has the steps.

Heat pump incentives: what is actually open

If your furnace is near the end of its life, a heat pump replaces both furnace and air conditioner. Some local electricity providers still pay rebates, and you must usually apply before installation:

Silicon Valley Clean Energy: $2,000 for a heat pump replacing a gas furnace, $3,000 for income-qualified customers. "Make sure to apply for your rebate before the appliance is installed" (SVCE Home Rebates).
San José Clean Energy: $1,500 ($2,500 in Environmental Justice communities) for a heat pump replacing a gas system. Pre-application required (SJCE EcoHome Rebate).
WestLight Energy (formerly Peninsula Clean Energy): heat pump HVAC upgrades "up to $2,500" (WestLight Energy).

Two statewide programs are not open: TECH Clean California single-family heat pump incentives have been "fully reserved and not accepting new reservations" since 14 November 2025 (TECH Clean California). The federal 25C tax credit ended for equipment placed in service after 31 December 2025 (IRS). For the full picture, see every HVAC rebate in California right now.

Is something wrong? When a high bill means a repair

Call a technician if the high bill comes with any of these:

The furnace turns on and off every few minutes (short cycling).
A heat pump runs constantly, shows aux heat often, or the outdoor unit stays iced over.
Some rooms are always cold while others overheat.
The heater runs but the air from the registers feels cool.
New noises, smells or soot. Soot or a gas smell is a safety issue, not a bill issue.

Cool Aid Air Conditioning & Refrigeration has repaired Bay Area heating systems since 1966, with C-20 licensed technicians and a 1-year parts and labor warranty on every job.

Bill climbing and the heater not acting right? Call 1-800-266-5243, any hour.

Book a heating check-up

Frequently asked questions

Can I be on CARE and Medical Baseline at the same time?

They are separate programs with separate applications on PG&E's site: CARE is income-based, and Medical Baseline is based on a practitioner-certified medical need (PG&E Medical Baseline). Check each program's page for how they combine on your account.

Does FERA help if my home heats with gas?

Only with the electric part of your bill. PG&E states that "FERA does not offer a discount on gas rates" (PG&E FERA). For gas heating costs, CARE is the program that discounts gas.

Will Budget Billing lower what I pay over a year?

No. PG&E calls it "not a savings program." It evens out the winter peaks so December costs about the same as April, which helps planning (PG&E Budget Billing).

Is it cheaper to turn the heat off completely when I leave for a few days?

Setting it low, rather than off, is the safer choice for a trip. A home that gets very cold takes a long run to recover, and a low setting keeps the system and the house from getting damp and chilled. With a heat pump, use a moderate setting so it does not rely on the backup heat strips when you return.

Should I close vents in rooms I do not use?

Close a vent or two if you like, but do not shut many. A forced-air system is designed for its full duct network, and closing lots of registers raises duct pressure and can make the furnace overheat and short cycle. Closing doors and lowering the thermostat works better.

My neighbor's bill is lower in the same kind of house. Why?

Setpoints, schedules, household size, duct leaks, insulation and whether a home is on the all-electric baseline all differ between similar houses. Compare your own bills month to month and year to year before assuming a fault.

More from the Winter Heating Help Center

Stay safe

Fix a heating problem

Older and less common systems

Comfort and air

Bills, rules and rights

For businesses

Commercial heating in winter

Or start from the Bay Area Winter Heating Help Center: symptom finder, safety checklist and every heating guide we have written.

Written and reviewed by Jim McKinny, owner of Cool Aid Air Conditioning & Refrigeration — California C-20 and C-38 licensed, EPA Universal certified, second generation of a family business serving the Bay Area since 1966. Every job we complete is backed by our 1-year parts & labor warranty.

Join Our List of Satisfied Clients

We’re proud to earn the trust of each and every customer we serve. From first-time callers to long-term service plan holders, your comfort and satisfaction are our priority.