Beginning in November 2025, electricity bills will be restructured for residential customers. The electric delivery section of the bill will include a Base Services Charge as a separate line item, replacing the current Basic Charge, and customers may also experience a reduction in the cost per kilowatt-hour (kWh) for electricity usage.

This change becomes effective October or November of 2025. The charge will appear on your bill as “Base Services Charge” under the “Delivery Charges” section of your bill.

In June 2022, the California Legislature passed Assembly Bill (AB) 205, mandating that the California Public Utilities Commission (CPUC) and electric utilities change the way residential customers’ electric bills are structured. The intent of AB 205 is to encourage electrification and make electric rates more affordable.

The Base Services Charge is designed by the state to cover the costs connecting each customer to the electric grid and providing state programs to assist income-qualified customers.

The Base Services Charge is not a new fee or tax, but rather a change in how electric bills are structured. Currently, both fixed costs and electricity usage costs are combined into energy usage charges on bills for residential customers. The new law (Assembly Bill 205) requires costs to be separated into a Base Services Charge to cover the cost of certain electrical equipment and services, and variable electricity delivery charges based on the electricity the customer uses during their billing period. This means that instead of paying for certain infrastructure costs through the variable electricity rate, customers will pay these costs through a standard fee, regardless of how much electricity they use.

Residential customers* including homeowners, renters, and solar customers will have a Base Services Charge on their bill. The charge amount will vary because some customers who are enrolled in income qualified programs like California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) or who live in qualifying housing property knows as deed-restricted affordable housing** are eligible for a discounted Base Services Charge amount.

* The Domestic Multifamily Accommodation rate (Schedule DM) is exempt from the Base Services Charge. These customers will continue to pay the Basic Charge. 
** Deed-restricted affordable housing properties are identified by the California Housing Partnership and defined as an affordable rental home that is restricted by the rules of state or federal subsidies to residents who have incomes at or below 80 percent of the Area Median Income. For more information, visit chpc.net. 

The exact monthly amount of your Base Services Charge depends on the number of days in your billing cycle.

• $6.00 per month for CARE-enrolled customers, assessed via an approximate daily charge of $0.20
• $12.08 per month for FERA-enrolled customers and those in qualifying deed-restricted affordable housing*, assessed via an approximate daily charge of $0.40
• $24.15 per month for customers not enrolled in any of these programs, assessed via an approximate daily charge of $0.80

To calculate your new Base Services Charge per month, multiply the applicable daily charge by the number of days in your billing period.

* Deed-restricted affordable housing properties are identified by the California Housing Partnership and defined as an affordable rental home that is restricted by the rules of state or federal subsidies to residents who have incomes at or below 80 percent of the Area Media Income. For more information, visit chpc.net. chpc.net.

Prior to the implementation of the Base Services Charge, which will begin in November 2025, the costs of maintaining the electric grid have been included in the variable energy delivery charges on customers’ bills. With the restructuring, the costs of things like meters and other equipment, which keep your home connected to the electric grid, will be separated from the variable electricity charges. These costs will now be covered primarily by the Base Services Charge, which will be a set daily charge on residential customer bills each month. 

The California Public Utilities Commission (CPUC) sets the statewide Base Services Charge amount and determines whether to make any changes to it. However, the Base Services Charge amount has been set by the CPUC, with no indication as to if or when the charge may change. The Base Services Charge is converted to a daily charge to collect the total amount across the average month. Thus, your Base Services Charge total may vary slightly depending on the number of days in your billing cycle, but you will not be charged more or less in total across the year.

Yes, these variable charges can change throughout the year as approved by the CPUC. However, the new Base Services Charge may reduce the variable cost per kilowatt-hour (kWh) by approximately 10%*.

* Estimate is based on current electricity rates as of June 1, 2025, and does not assume future rate changes.

The Base Services Charge will be approximately $24 per month for master-metered customers and covers essential costs to maintain the infrastructure which keeps the property connected to the electric grid. Sub-metered tenants will also pay approximately $24 per month, but tenants enrolled in CARE, FERA, or living in qualifying deed-restricted affordable housing receive a discounted Base Services Charge Adjustment.

The Base Services Charge Adjustment amounts will be listed on the master-metered bill for the applicable program enrollments based on unit totals. CARE and FERA tenants will continue to receive their current discounted rates, as well as the discounted Base Services Charge Adjustment. The master meter is responsible to apply the correct Base Services Charge Adjustment to each sub-metered bill, based on the tenant’s enrollment in CARE, FERA, and/or living in qualifying deed-restricted affordable housing.