CPUC Approves Fixed Charge: What it Means for You
CPUC Approves Fixed Charge: What it Means for You
The California Public Utilities Commission unanimously decided to implement a fixed charge on electric bills.
This means a standard fixed charge will be applied to all residential customers of Southern California Edison, Pacific Gas and Electric, San Diego Gas and Electric and other utilities under CPUC jurisdiction. It will take effect in late 2025 for SCE customers.
Those enrolled in the state’s California Alternate Rates for Energy or Family Electric Rate Assistance programs, whose income qualifies them for bill discounts, will pay a lower fixed charge.
The utilities will not make more profit from the fixed charge.
“There’s no change to utility profits. There’s no additional cost being collected. The fixed charge ensures that everyone who uses the electric grid helps to pay for its operation and upkeep,” said Michael A. Backstrom, SCE’s vice president of Regulatory Affairs.
Is the fixed charge a utility-driven idea?
No. The fixed charge is a directive of state law to bring greater equity and affordability to electric bills. SCE was among more than a dozen participants mandated to submit proposals considered by the CPUC.
Is the fixed charge a fee that’s added to existing bills?
No. It’s simply a new way to structure bills. Most companies, including other utilities, cellphone, water and cable service providers, already use a similar billing model.
How much will this fixed charge cost customers?
$24.15 per month for most customers. At the same time, rates for all residential customers will be 5 to 7 cents lower per kilowatt-hour. Customers enrolled in the CARE assistance program qualify for a discounted fixed charge of $6 per month; for those enrolled in FERA, $12 per month.
What does fixed charge pay for?
It’s intended to cover the costs of grid infrastructure and customer support, which includes resolving service or account issues and responding to emergency outages. These costs generally don’t vary from month to month.
Will all SCE customers be required to pay the fixed charge?
The fixed charge will be applied to all residential accounts.
How will the fixed charge impact my bill?
Assuming usage remains the same, nearly half of SCE’s residential customers should benefit from lower bills. Customers in hot climate zones should also benefit. For other customers, the impacts should be modest. SCE plans to communicate directly with customers several weeks before the fixed charge begins appearing on monthly bills in late 2025.
Is conserving energy no longer important?
It is still important to conserve energy. SCE encourages customers to conserve between 4-9 p.m., when the strain on the power grid is usually at its peak.
For more information on fixed charge visit sce.com/fixedcharge.