In May of 2024 the California Public Utility Commission (CPUC) approved the implementation of Income Graduated Fixed Charges, otherwise known as “Flat Rate Pricing,” which brings a change in how utility costs are structured. The decision introduces a standardized monthly flat rate pricing that will affect all SCE customers, including those served by CalChoice’s associate member agencies, starting in late 2025. The goal of this change is to establish a billing system that takes into account customers’ income levels.
“The CPUC’s approval of Flat Rate Pricing marks a significant shift in utility billing, emphasizing the need for open communication,” said CalChoice Executive Director Jason Caudle. “Our associate members are instrumental in guiding our communities through these upcoming billing adjustments with innovative solutions.”
The standard flat rate fixed charge for a typical customer, as established by the CPUC in consultation with California’s three Investor-Owned Utilities, will be $24.15 per month. However, customers enrolled in programs like the California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) are eligible for a discount. CARE customers will pay $6 per month, while FERA customers will pay $12 per month.
Customers will receive an off-setting rate reduction of $0.05 to $0.07 per kilowatt-hour to what they currently pay each month for the transmission and distribution of their power. It is important to note that this action will not increase the rates community choice aggregation customers pay.
“As we move towards a more equitable energy landscape, our associate members must take an active role in informing their customers about these changes,” continued Jason. “By prioritizing transparency and collaboration, we can ensure that our customers continue to benefit from affordable and sustainable energy resources.”
For more information about Flat Rate Pricing, visit: https://www.sce.com/customer-service/keeping-bills-manageable/fixed-charge.
About CalChoice
CalChoice is a California Joint Powers Authority (“JPA”) that provides Community Choice Aggregation (“CCA”) support services, which include energy portfolio management, power procurement and trading, settlements and invoice validations, regulatory compliance, regulatory advocacy, financial and accounting, and rate-setting support functions. Current operational CalChoice members include Lancaster Choice Energy, Apple Valley Choice Energy, Pico Rivera Innovative Municipal Energy, San Jacinto Power, the Rancho Mirage Energy Authority, Pomona Choice Energy, Santa Barbara Clean Energy and Energy for Palmdale’s Independent Choice. By joining together, CalChoice members are able to cut costs through economies of scale. Learn More at californiachoiceenergyauthority.com
