Are Electricity Bills Higher Than Other Household Expenses?
Affordability is top of mind for our customers — and us. It’s not only electricity, but housing, groceries and, of course, gasoline.
- For every dollar Americans spend, only 1.3 cents go toward electricity. Compare that with 16.7 cents for healthcare, 15.6 cents for housing and 7.5 cents for groceries.
- Relative to overall household expenses, electricity costs are near their lowest level in approximately six decades.
- By 2045, the average SCE customer household could save about 40% on total energy costs as electric vehicles and other energy-efficient technologies become more common and reliance on fossil fuels declines.
- As homes, businesses and transportation systems increasingly use electricity, the cost of maintaining the grid is shared more broadly, helping lower customer bills.
Sources: Countdown to 2045 (SCE) and Edison Electric Institute (EEI)
How Does SCE Use Customer Dollars to Support Reliable Power?
SCE works to provide reliable power at the lowest reasonable cost while supporting California's energy goals.
At the start of 2026, millions of SCE customers saw their electricity rates decrease by an average of 4.3%. There’s been no increase since.
We expect a further decrease later this year and rate updates to track at or below local inflation on average through 2030, as they did for about 20 years prior to 2020.
How Do SCE Rates Compare to Inflation?
View Comparison
1 Includes California Climate Credit. Forecast subject to change. Rates will vary based on outcomes and timing of regulatory decisions, changes in market prices, variability in sales, collections and other factors. Forecast Consumer Price Index is based on CPI-U Los Angeles (All Items), CA DOF, February 2026.
2 External events include 2% from Public Purpose Programs. Includes items such as under collection of rates in 2023 due to milder-than-anticipated weather and other one-time events.
3 Standard operations include 4% from Power Supply — Clean Energy.
SCE Rates Compared to Inflation
1 Includes California Climate Credit. Forecast subject to change. Rates will vary based on outcomes and timing of regulatory decisions, changes in market prices, variability in sales, collections and other factors. Forecast Consumer Price Index is based on CPI-U Los Angeles (All Items), CA DOF, February 2026.
2 External events include 2% from Public Purpose Programs. Includes items such as under collection of rates in 2023 due to milder-than-anticipated weather and other one-time events.
3 Standard operations include 4% from Power Supply — Clean Energy.
Where does each customer dollar go?
For every dollar customers spend on their bill, 34 cents directly pays for the electricity we deliver — with no markup or profit. About 40 cents goes to maintaining and repairing the electric grid to:
- Improve safety for the public, first responders and our workforce.
- Reduce outages and safely speed up restoration times.
- Deliver affordable, reliable power on a resilient grid while transitioning to 100% carbon-free energy as quickly as possible.
SCE residential customers also fund a broad set of public mandates, including solar and energy efficiency incentives and low-income assistance programs, while also bearing significant wildfire-related costs. Many of these expenses are embedded within delivery charges and can account for nearly one-third of the average bill.
View Breakdown
Based on Bundled System Average Rates as of Jan. 1, 2026.
 |
YOUR DOLLAR
$1
|
|---|---|
 |
GENERATION Cost of energy sources, including natural gas, hydro, solar and wind. SCE generates less than 20% of the power it sells. 34¢
|
 |
DISTRIBUTION Grid maintenance and new equipment, including poles, wires and substations. 34¢
|
 |
WILDFIRE Coated wire, vegetation clearing, enhanced inspections, weather stations, high definition cameras and insurance. 11¢
|
 |
TAXES Federal, state, county and city taxes plus unpaid customer bills. 11¢
|
 |
TRANSMISSION Operating and maintaining the high-voltage power lines that move electricity across long distances. 6¢
|
 |
MANDATED STATE PROGRAMS Including incentives for energy efficiency and protection for low-income customers. 4¢
|
Based on Bundled System Average Rates as of Jan. 1, 2026.
What Savings and REbates Are Available to SCE Customers?
Time of Use Rates (TOU)
Learn more about TOU.
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EV Rebates
Learn more about EV rebates.
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Demand Response Programs
Demand Response programs reward customers for reducing usage during peak demand.
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Additional Savings Programs
Explore programs, resources and tips to help lower your energy costs.
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What is the Base Services Charge on My Electric Bill?
The Base Services Charge helps cover the fixed costs of maintaining the electric grid that serves your home. It separates grid costs from energy use, which may help lower per-kilowatt-hour rates while supporting essential state energy programs.
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