OUR RATES ARE CHANGING JANUARY 1, 2026
Throughout the year, we submit requests to the California Public Utilities Commission (CPUC) to change our rates. These requests must be approved by the CPUC. Changes to our rates may cause your monthly electricity bill to increase or decrease.
Current Average Residential Rate: 35.3 cents per kWh (33.3 cents per kWh w/Climate Credit)
New Average Residential Rate: 34.5 cents per kWh (33.2 cents per kWh w/Climate Credit)
The table below shows an estimate of how your residential Southern California Edison (SCE) bill may be affected by our January 1, 2026, rate decrease:
Average Residential Customer* Monthly Bill Impacts
| Type of Customer | Current Monthly Bill** | Decrease | New Monthly Bill | % Decrease |
|---|---|---|---|---|
| Residential Bill | $193.06 | -$5.51 | $187.56 | -2.9% |
| CARE Residential Bill (income qualified) | $117.46 | -$5.06 | $112.40 | -4.3% |
Average Residential Customer* Monthly Bill Impacts with California Climate Credit***
| Type of Customer | Current Monthly Bill** | Decrease | New Monthly Bill | % Decrease |
|---|---|---|---|---|
| Residential Bill | $183.73 | -$2.17 | $181.56 | -1.2% |
| CARE Residential Bill (income qualified) | $108.13 | -$1.73 | $106.40 | -1.6% |
*A typical residential customer using 500 kWh per month.
**The Current Monthly Bill includes the effects of residential customers transitioning to the Base Services Charge implemented on November 15, 2025.
***The California Climate Credit is a semi-annual credit applied to customers’ bills in April and October.
The January 1, 2026, rate decrease is the net result of both increases and decreases to various items collected in electricity rates:
- Mainly: Lower generation rates resulting from lower forecasted generation costs but a forecasted increase in usage. Eligible residential and commercial customers will also receive a semi-annual California Climate Credit of $36. The CPUC approved these cost recoveries in a decision issued in December of 2025 (Decision 25-12-028).
- A decrease of $151 million to rates for the 2026 costs associated with the extended operations at Diablo Canyon Power Plant. This implementation results in a decrease for all customers. The CPUC approved this decrease in a decision issued in December of 2025 (Decision 25-12-007).
- An increase of $476 million in rates to recover 2026 funding approved in SCE’s 2025 General Rate Case.
- An increase of $122 million in rates for recovery bonds issued to finance our wildfire claims-related costs associated with the Thomas Fire and Montecito Debris Flow Events.
- Every January 1 we adjust transmission rates governed by the Federal Energy Regulatory Commission (FERC) associated with accessing the California Independent System Operator (CAISO) controlled grid. This rate adjustment resulted in an increase in transmission rates.
- At the end of each year, we adjust our rates based on the amount of electricity our customers actually use compared to what we forecasted. If the total amount of electricity used is lower than forecasted, as was the case in 2025, rates are adjusted to offset the difference.
- The decrease is the cumulative result of these decisions issued last year for multiple SCE requests.
We offer a variety of programs, tools, incentives, and rebates to help you reduce energy usage and manage costs at home and at work. Visit our Home Efficiency Guide for energy-saving tips and learn more about ways to save.