Fixed Charge

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Get the Facts About the Fixed Charge


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Pay Less for Electricity

A fixed charge on electric bills would lower the cost all SCE residential customers pay for each kilowatt-hour of electricity by about 26%.

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No new income verification

All residential customers would pay the same fixed charge. The exception: Lower-income customers enrolled in income-qualified bill assistance programs; their fixed charge would be discounted.

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Simpler, more transparent bills

Customer bills would be organized into two main parts: A fixed charge that stays the same each month, and energy charges based on the amount of energy the customer uses during their billing period.

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Similar to cell, water and cable service bills

The fixed charge is not an added fee above and beyond customers’ current energy charges; it’s a change to how electric bills are structured. Companies like cell, water and cable service providers already include fixed charges on their customer bills.

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Frequently Asked Questions


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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.

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

According to the most recent proposal submitted by Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric, a standard fixed charge would be applied to all residential customers, except for lower-income customers enrolled in the state’s CARE or FERA programs whose income already qualifies them for bill discounts. Their fixed charge would be lower. No income verification is needed in this proposal.

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Applying this fixed charge would allow SCE to reduce the cost for each unit of electricity used (kilowatt-hour) by 26% for all residential customers; for example, SCE’s current residential rate of about 36 cents-per-kilowatt-hour would drop to 26 cents. 

In addition, SCE’s approximately 1.2 million lower-income customers would receive an average 5%-18% bill reduction, and about half of SCE’s customers would see lower bills, assuming no change in electricity use. For customers who don’t immediately benefit, SCE offers energy efficiency and demand response programs and energy-saving tips to help them save money on their electric bills. 

(PG&E and SDG&E proposed different fixed charge amounts and usage charge reductions for their customers.)

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The fixed charge is not an added fee above and beyond customers’ current energy charges; it’s a change to how electric bills are structured. Companies like cell phone, water and cable service providers already include fixed charges on their customer bills.

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In SCE’s most recent proposal, a standard fixed charge of $51 would apply to all residential customers, except for CARE or FERA customers whose income already qualifies them for bill discounts. The fixed charge for those customers would be $10 or $15, depending on their income level.

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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.

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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.

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