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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsCalifornia’s income-related electricity-bill change is a tiered monthly Base Services Charge (BSC), not a formula that calculates your entire bill from your exact income. The fixed charge is about $6, $12 or $24.15 a month, depending on the customer category; electricity use remains a separate part of the bill. Your total bill’s effect depends on your utility, rate plan, usage and eligibility for assistance programs.
What “based on income” means
Assembly Bill 205 directed the California Public Utilities Commission (CPUC) to authorize a fixed charge with at least three income thresholds. For large utilities, the adopted tiers use existing program and housing categories to determine the charge: CARE customers are in the lowest tier; FERA customers and qualifying residents of affordable housing are in the middle tier; other residential customers are in the default tier. The charge is not based on a calculation of each household’s precise income. The CPUC’s Resolution E-5356 describes the adopted structure.
The BSC shifts recovery of some existing fixed grid costs from usage-based rates to a flat monthly bill line. The CPUC identifies transmission and distribution infrastructure as examples of costs that do not directly vary with one customer’s electricity use. The bill still includes charges for the electricity you consume; this is a change in how some costs are collected, not a new income-only bill. The CPUC’s explanation of the Base Services Charge sets out its purpose.
How much is the monthly charge?
| Customer category | Adopted monthly BSC |
|---|---|
| CARE customers | About $6 |
| FERA customers or qualifying affordable-housing residents | About $12 |
| Other residential customers | $24.15 |
These are fixed-charge amounts, not estimates of total monthly bills. The CPUC ordered Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E) to implement the charge during the fourth quarter of 2025, and Pacific Gas and Electric (PG&E) during the first quarter of 2026. Those were the Commission’s implementation windows; the official sources cited here do not establish a precise first-bill date for every utility and customer. Resolution E-5356 gives the amounts and schedule, while the CPUC CARE/FERA page lists current program charge information.
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Why a lower usage rate may not mean a lower bill
The CPUC’s May 9, 2024 AB 205 fact sheet describes the adopted structure as reducing usage rates by 5 to 7 cents per kilowatt-hour. That is a statewide policy summary, not a guarantee that every utility rate plan or customer’s all-in rate falls by exactly that amount.
A household’s bill combines the fixed charge with charges tied to electricity use and the applicable rate plan. Moving some fixed costs into the BSC while lowering usage rates can affect households differently: the BSC is the same month to month within a tier, while the usage-related portion varies with consumption and, for time-of-use plans, when electricity is used. There is no single bill increase or savings figure that applies to all California households.
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Who may qualify for a reduced charge?
CARE
CARE provides eligible customers a 30–35% discount on electric bills, and CARE customers receive the reduced BSC. The CPUC’s CARE/FERA program page lists income limits effective June 1, 2026 through May 31, 2027. For CARE, the upper annual income limits are:
| Household size | CARE upper income limit |
|---|---|
| 1–2 people | $43,280 |
| 3 people | $54,640 |
| 4 people | $66,000 |
| 5 people | $77,360 |
| 6 people | $88,720 |
| 7 people | $100,080 |
| 8 people | $111,440 |
| Each additional person | $11,360 more |
The CPUC also lists eligibility through specified public assistance programs. These limits are for the stated 2026–27 effective period; check the program page for current limits and application details.
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FERA and qualifying affordable housing
FERA is available to eligible customers of PG&E, SCE and SDG&E. Its income limits are listed separately from CARE’s on the CPUC program page. Qualifying residents of income-restricted affordable housing are also assigned to the middle BSC tier under the adopted structure. Check the CPUC or your utility for current eligibility rules and how to apply.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to estimate what your household will pay
A meaningful comparison needs more than the BSC amount. Use the same period and account for:
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- Your utility territory and current rate plan.
- Your monthly kilowatt-hour use and, if applicable, time-of-use pattern.
- Whether you are enrolled in CARE or FERA, or qualify under the affordable-housing category.
- The BSC tier that applies to your account.
- The dates covered by the bill and the utility’s current rates.
For a household-specific estimate, use a current utility rate schedule or bill calculator rather than applying the statewide usage-rate summary as if it were an individual rate. The CPUC Public Advocates Office’s 2025 Q4 Electric Rates Report, published February 11, 2026, tracks rate changes across PG&E, SDG&E and SCE through January 1, 2026; it is context, not a substitute for your current tariff or bill.
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