PSPS Alert
Public Safety Power Shutoffs (PSPS) may be necessary to protect communities. See the latest updates.

Fixed Charge: What Is It?

Class name
left-box-content
Expose as Block
No

A fixed charge separates the cost of your electricity use — which can vary each month — from the cost of power lines, transformers and other equipment and services that generally doesn’t vary each month. 

By separating the costs, you pay less for each kilowatt hour of electricity. 

The California Public Utilities Commission approved this fixed charge in May 2024, and it will begin for SCE residential customers in late 2025.

Expose as Block
No
""
Expose as Block
No
Add Horizontal line
Off

Get the Facts About the Fixed Charge

Class name
sce-header-center
Expose as Block
No

Lower prices for electricity

The fixed charge lowers the price customers pay for each kilowatt hour by 5-7 cents.

""
Expose as Block
No
Add Horizontal line
Off
Expose as Block
No
""

Simpler, more stable bills

A fixed charge helps keep bills more stable on a month-to-month basis.

Expose as Block
No
Add Horizontal line
Off
Expose as Block
No

Similar to cell, water and cable service bills

Almost all publicly owned utilities in California and most utilities nationwide have a fixed charge on bills.

""
Expose as Block
No
Add Horizontal line
Off
Expose as Block
No
Expose as Block
No
Add Horizontal line
Off
""

No income verification required

Customers enrolled in income-qualified programs receive a discount on the fixed charge.

Expose as Block
No
Add Horizontal line
Off
Expose as Block
No
""
Expose as Block
No
Add Horizontal line
Off

Frequently Asked Questions

Class name
sce-header-center
Expose as Block
No

Energy bills are made up of fixed costs and the costs of electricity customers use. 

Fixed costs generally don’t change month-to-month. They include costs of safely building, maintaining and operating the electric grid, connecting each customer to the grid, providing customer support, and of state programs to help income-qualified customers and support energy efficiency. 

The cost of electricity usage can vary from month to month. SCE buys fuel to generate energy and also buys power from other companies; by law, the costs get passed through directly to customers without any markup. 

Today, both fixed costs and electricity usage costs are combined on residential customers’ bills into an energy charge. The new law (AB 205) requires costs to be separated into a monthly fixed charge to cover certain fixed costs, and an energy charge based on the electricity the customer uses during their billing period.   

AB 205 also requires that when implemented, the fixed charge results in lower bills (on average) for lower-income customers.

Expose as Block
No

All residential customers. That includes homeowners and renters, including those with or without solar panels.  

Expose as Block
No

On average, all low-income customers enrolled in CARE or FERA will save on their monthly bills.

The change cuts the price all SCE residential customers pay for each unit of electricity.

The rate reduction helps to make it more affordable for customers to use electric vehicles, stovetops, heat pumps and other clean energy solutions, regardless of income or where they live.

By cutting electric rates, the fixed charge intends to accelerate the state’s transition to 100% clean electricity. 

A fixed charge separate from energy charges helps keep bills more stable and less volatile on a month-to-month basis.

The fixed charge ensures that everyone who uses the electric grid helps to pay for its operation and upkeep.

Expose as Block
No

The fixed charge is not a new fee or tax. It simply shifts how existing costs are shared among utility customers.

Expose as Block
No

The standard fixed charge is $24.15/mo. 

Income-qualified customers receive a discount

CARE (California Alternate Rates for Energy) program customers’ fixed charge: $6/mo.

FERA (Family Electric Rate Assistance) program customers’ fixed charge: $12/mo.

Expose as Block
No

No. Utilities will receive the same amount of money as they receive today for the investments they make in operating and protecting the electric grid.

Expose as Block
No

In June of 2022, the California Legislature passed and Governor Newsom signed Assembly Bill 205, mandating the CPUC change the way residential customers’ electric bills are structured.

Expose as Block
No
Class name
csrp-weather-backtotop
Expose as Block
No