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The state of California has set important goals for making the electric grid safer, greener and more reliable. To support these goals, updates to your bill will start to appear in October and November 2025.
Understanding Updates to Your Electricity Bill
Infrastructure investments are approved by the California Public Utilities Commission (CPUC) to help SCE continue strengthening the grid to reduce outages, prepare for extreme weather and promote renewable energy.
As critical as this update is toward meeting statewide energy goals, we also understand that managing electricity costs at home is just as important to our customers. We’re here to help you understand these updates, and to let you know about resources and programs that support your needs.
How Rate Decisions Are Made
All rate-update proposals go through an approval process with the CPUC to ensure we’re making responsible investments.
For more details about this rate change, see SCE Rate Advisory.
Upgrading the Electricity Infrastructure
Most immediately, the rate update will strengthen SCE’s electric infrastructure in three critical areas:
- Ensuring Reliable Power – Upgrading over 1,000 miles of overhead power lines through 2028 enables us to reduce unplanned outages and restore power faster after an outage.
- Protecting Against Weather Extremes – Undergrounding 212 miles of power lines and installing another 1,600 miles of coated wire through 2028 allows us to strengthen the electric grid to better withstand extreme weather events.
- Preparing for the Future – Modernizing and expanding the electric grid through the addition of 400 megawatts of battery storage capacity by 2028 prepares us to meet California’s future energy needs. Investment in advanced battery storage systems supports the use of more renewable energy and lowers costs over time.
Updates You’ll See on Your October Bill
- Rate Updates. Residential electric rates will increase by approximately 13% and will start to appear on your October bill and the bills that follow.
The California Climate Credit. October bills will reflect a $56 California Climate Credit for residential and small business customers. The credit is automatically discounted to your account.
The climate credit is a state-issued rebate appearing on electric and natural gas bills twice a year, giving residents their share of proceeds from California’s Cap-and-Trade Program. Customers received their most recent of these credits in April 2025.
The October rate increase may be partially or fully offset by your California Climate Credit rebate.
Updates You’ll See on Your November Bill
Base Services Charge
California Assembly Bill 205 requires electric utilities to restructure residential bills. The goal of this update is to make it more affordable to use electric technologies and more clean, sustainable energy. The Base Services Charge separates the costs of delivering electricity from the costs to maintain infrastructure, which keeps your home connected to the grid.
Beginning Nov. 15, 2025, monthly electric bills for residential customers (including those with solar) will be restructured. The electric delivery section of the bill will include a Base Services Charge as a separate line item, replacing the current Basic Charge. At the same time, the cost you pay for each kilowatt-hour (kWh) of electricity may decrease compared to what you paid in October.
Your total bill may go up or down, depending on your usage.
Frequently Asked Questions
FAQ
No, the Base Services Charge is happening due to the passage of California Assembly Bill 205 and is not a rate increase but a bill restructuring applicable to residential customers only. The Oct. 1 rate update applies to all of SCE’s customer segments, including commercial and industrial, agricultural, local governments and others.
The Base Services Charge and the reduced kilowatt-hour cost may result in positive, negative or neutral impacts to monthly bills, depending on energy usage (Refer to charts on Base Services Charge).
No. The costs of liability claims related to wildfire losses are not part of SCE’s Oct. 1 rate update. To cover claims payments, SCE would access funds from its self-insurance and the Assembly Bill 1054 state wildfire fund. Costs of infrastructure repair would typically be recovered in a separate CPUC cost-recovery proceeding.
When the CPUC authorized the Base Services Charge in May 2024, it set late 2025 as the start date.
In contrast, rate updates were intended to take place earlier in 2025 but SCE’s General Rate Case for 2025-2028 wasn’t authorized by the CPUC until Sept. 18, 2025.
Since many projects have lead times of five years or longer, SCE must start work immediately. Our customers are using more electricity, with some adding electric vehicles, battery storage, and heat pumps at home and at work. SCE needs the funding to get the electric grid ready in time to meet rapidly rising customer demand.
CCA customers are exempt from rate increases that affect the supply/generation portion of their bill. However, all customers are subject to SCE delivery rate increases whether they are enrolled with a CCA or not. SCE’s delivery charges include all of the main drivers for this specific rate increase to support systemwide reliability for all customers.
Yes, all three of California’s largest investor-owned utilities are required by the CPUC to include the charge on residential customer bills. SCE and San Diego Gas & Electric are implementing the charge in late 2025, and Pacific Gas & Electric plans to implement it in March 2026.
Rate Increase | Base Services Charge |
|---|---|
| The General Rate Case funds SCE’s day-to-day operations and the costs to strengthen California’s electric grid for 2025-2028. That will increase rates across the board. | The Base Services Charge is the implementation of Assembly Bill 205 authorized in June 2022 to reflect the fixed operational and maintenance costs. This fixed charge is part of the restructuring of the residential customer bill and does not result in any new funds to SCE. |