Residential Rate ChangesClick to toggle navigation breadcrumbs.
Your Rates Are Changing
Our request to implement these changes will not change the amount of total revenue we collect, which is determined through other proceedings.
What does SCE want to change about how I’m charged for electricity?
The CPUC has determined that the current steeply tiered structure is unfair to many residential customers, and is considering what changes to make so that the system is fairer. Here’s what we suggest to phase in beginning in 2015: changing the number of tiers from four to three; implementing a higher monthly fixed charge with a corresponding reduction in kWh pricing; and reducing the price difference between the tiers. The combination of these measures will still continue to encourage energy efficiency while making customers’ bills more equitable, stable and predictable.Learn more about what we’re proposing Close
Updating the Tiered Structure
The current steeply tiered rate structure was put in place during California’s energy crisis over 10 years ago and has higher-usage customers (those in Tiers 3 and 4) paying a larger portion of costs than lower-usage customers (those in Tiers 1 and 2) - often resulting in summer bill spikes that disproportionately affect the higher-usage customers . A significant number of these high-usage customers are low-to-moderate income families with children, or seniors who are on a fixed income.
The CPUC currently has a rate design rate design proceeding underway. In that proceeding, we’re proposing to make the rate design more equitable by reducing the number of tiers from four to two over a period of a few years– this means that customer’s bills will be more stable and predictable by removing the higher “variable” costs associated with reaching the higher priced tiers.
Monthly Fixed Charge
The kWh price for energy usage in the first two tiers of the Residential Rate Plan has remained relatively unchanged for the past decade; historical price increases since then have been, for the most part, applied to Tiers 3 and 4. This resulted in about 25% of our customers paying for most of the investments needed to create and maintain a 21st century power grid , as well as the costs associated with transitioning California to cleaner energy resources.
A higher fixed charge would ensure that everyone more fairly contributes to maintaining and upgrading the power network we all rely on. This higher fixed charge would be offset by a lower price per kWh for the remaining tiers. It’s important to note that a higher fixed charge will not result in more revenue for us –it simply and more equitably ensures that everyone is paying their fair share.
Changes for Solar Customers
Net Energy Metering (NEM) is used to encourage investments in renewable energy generation by allowing a customer-generator to receive a financial credit for power generated by an on-site system, such as rooftop solar photovoltaic (PV) systems.
NEM customers are currently not only able to avoid generation charges by producing renewable energy, but they also avoid other costs involved with providing them electric service, including transmission and distribution costs that we incur even when the sun isn’t shining. Under the current rate design, the infrastructure and related costs to provide these customers with electricity when their systems aren’t generating electricity are absorbed by other residential customers.
Recent Rate Changes & Your Monthly Bill
Price increases took effect in June 2014 as part of the annual ERRA proceeding to recover the higher costs to generate and purchase power. This resulted in increases to tiers 3 and 4.
In July 2014, the first phase of residential rate reform was implemented which resulted in lower-usage customers (those in Tiers 1 and 2) experiencing larger bill increases as the revised tier pricing took effect. Higher-usage customers (those in Tiers 3 and 4) saw smaller bill increases than they would have seen without these changes. There are additional changes pending review at the CPUC for the Residential Rate Plan to more evenly distribute costs among all customers. If approved, these changes are anticipated to be phased in over the next few years.Get more details about why rates changed Close
Your monthly bill might have increased during the summer of 2014 due to rising costs, including:
- Cost to generate or buy power. Investor-owned electric utilities, such as SCE, are required to predict what they will spend to buy energy from a variety of sources including renewable power and natural gas, and set rates accordingly. If we spend less than we forecast, the money is returned to customers as offsets for other costs. If we spend more, then we need to recover the difference. Recently, energy costs were higher than we predicted, so we need to collect the additional money to cover the costs of the electricity sources. Costs to generate or buy power are passed through to customers without a price mark-up. We do not make a profit from this.
- Infrastructure Investments: Investing in our infrastructure. We’re building a smarter power network that will make power safer and more dependable. This includes:
- Updating cyber security to keep the grid safe from hackers.
- Modernizing the power network to integrate more renewable energy. We’re working to ensure that 33 percent of the power we deliver will come from renewable resources, such as wind and solar energy, by 2020.
- Maintaining and improving the network infrastructure of about 1.5 million poles and 100,000 miles of wires to ensure the power we deliver is safe and reliable.
- Making investments to reduce our crew’s response time to get power restored more quickly when repair outages occur.
Tools & Resources
We have a variety of energy saving programs and helpful tools to help you better manage your your monthly bill.
Below are answers to common questions about the rate change. If you have additional questions, give us a call at 1-800-798-7723 and we'll be happy to answer them. Have feedback about this page? Send us an email - we're always looking for ways to improve.
***Savings will vary depending on the amount of energy used during a Save Power Day event, and the number of events called each year.