Lowering your utility bills in California: CARE, FERA, LIHEAP, payment plans and the fixed charge

The short answer

Check your tier on the new fixed charge. PG&E, Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E) residential electric bills now carry a monthly "base services charge" of $24.15. CARE customers pay $6 and FERA customers about $12.
Apply for CARE or FERA. CARE takes 30% to 35% off electricity and 20% off natural gas. A family of four qualifies with income up to $66,000 a year, or if anyone gets Medi-Cal, CalFresh, WIC, SSI, LIHEAP, free school lunch or CalWORKs. FERA takes 18% off electricity for a family of four earning up to $82,500.
Behind on bills? Call before a shutoff notice. Ask for a payment arrangement, Budget Billing and any debt-forgiveness plan, and call the state's LIHEAP line, 1-866-675-6623.
Get free upgrades. The Energy Savings Assistance program offers no-cost weatherization and efficient appliances to households under the CARE income limits; PG&E says renters can take part too.
Ask about phone and water discounts: California LifeLine for phone service, and your water supplier's low-income program.
Still stuck? Complain to the California Public Utilities Commission (CPUC) at 1-800-649-7570. Hang up on anyone who demands instant payment, and call the number on your bill.

Income limits below apply from June 1, 2026 to May 31, 2027. Programs and amounts change, so confirm with your utility before you rely on a figure.

First, check who sends your bill

The discounts in this guide are set by the CPUC for the utilities it regulates: PG&E, SCE and SDG&E for electricity, and the gas utilities. Some households are also served by a community choice aggregator (CCA), a local electricity provider. The CPUC lists about a dozen CCAs in PG&E's area, such as MCE Clean Energy and Peninsula Clean Energy; about a dozen in SCE's, such as Clean Power Alliance; and two in SDG&E's, Clean Energy Alliance and San Diego Community Power. CARE discounts apply to income-qualified utility and CCA customers alike.

To see what your utility and any local CCA charge, use the CPUC's Electric Rate Comparison tool: enter your ZIP code, county or city, and pick Residential, CARE or EV rates. If a city utility or irrigation district serves you instead, ask it which discounts and payment plans it offers.

Which help fits your situation

Many of these programs can be combined; enrolling in LIHEAP, for example, also qualifies you for CARE. The CPUC's financial assistance page lists them all.

If you...	Start with	What it does
Have a low or moderate income	CARE or FERA	CARE: 30% to 35% off electricity and 20% off gas. FERA: 18% off electricity. Both lower the monthly base services charge.
Are behind on your bills	A payment arrangement, a debt-forgiveness plan such as AMP, and LIHEAP	Spreads out or forgives past-due amounts; LIHEAP helps pay the bill.
Have big seasonal swings	Budget Billing (PG&E)	Averages your monthly bills.
Have an old refrigerator or a drafty home	Energy Savings Assistance; LIHEAP weatherization	No-cost upgrades for households that meet the income rules.
Rely on powered medical equipment	Medical Baseline	Bills more of your energy at the lowest residential price.
Need cheaper phone service	California LifeLine	Discounted home phone or cell phone service.
Get water from a CPUC-regulated water company	Water Company Assistance	Income-based water discounts.

The new fixed charge: the base services charge

A 2022 state law (AB 205) told the CPUC to create an income-graduated fixed charge for home electricity. The CPUC adopted it in Decision D.24-05-028 on May 15, 2024, and the charge is now called the base services charge. It is a flat monthly amount that appears on your bill whether you use a little electricity or a lot. In exchange, the price of each kilowatt-hour (kWh) went down (CPUC Energy Division).

Tier	Who is in it	Monthly charge
1	Customers enrolled in CARE	$6.00
2	Customers enrolled in FERA, and residents of qualifying affordable housing with incomes below 80% of area median income	About $12 ($12.08 in the CPUC slides)
3	All other residential customers	$24.15

The charges started on these dates, according to the CPUC's implementation plan. The per-kWh cuts are CPUC estimates based on 2023 costs.

Utility	Start date	Estimated cut in the per-kWh price
SDG&E	October 1, 2025	About 6.8 cents
SCE	November 15, 2025	About 4.6 cents
PG&E	March 1, 2026	About 4.7 cents

PG&E's June 2026 CARE/FERA application confirms that enrolled customers now get a discounted base services charge (PG&E form 01-9077). SCE notes that the exact amount on your bill varies with the number of days in the billing cycle (SCE flyer, October 2026).

What it means for you

Enroll if you qualify. If you are eligible for CARE or FERA but not enrolled, you pay the full $24.15. The CPUC puts the saving at about $18 a month for CARE and about $12 for FERA, on top of the percentage discount.
Your total depends on use. The fixed part is the same every month. The saving from the lower per-kWh price grows with the electricity you use.
Cutting use still pays. The per-kWh part of the bill still rises and falls with what you use.

What comes next. A CPUC working group on verifying household income, to tell moderate-income from higher-income households, was due to report in early 2026, and a later proceeding is planned to design the next version of the charge. Two smaller utilities have their own tiers. For PacifiCorp (Pacific Power), Resolution E-5396 of February 26, 2026 approved $5.00, $13.43 and $26.34 a month for single-family homes, and less for apartments, with the start date to be set in a later filing. For Liberty Utilities (CalPeco Electric), a draft resolution of April 30, 2026 proposed $5.00, $10.00 and $31.70, plus adjustments.

CARE and FERA discounts: who qualifies in 2026–27

CARE (California Alternate Rates for Energy) takes 30% to 35% off the electric bill and 20% off the natural gas bill at the large utilities; electric companies with fewer than 100,000 accounts give 20%. SCE's October 2026 flyer puts its CARE discount at 32.5% off electricity usage charges. FERA (Family Electric Rate Assistance) takes 18% off electricity for households whose income is a little above the CARE limit. PG&E, SCE and SDG&E offer FERA (CPUC CARE/FERA page).

People in household	CARE: yearly income up to	FERA: yearly income up to
1 or 2	$43,280	$54,100
3	$54,640	$68,300
4	$66,000	$82,500
5	$77,360	$96,700
6	$88,720	$110,900
7	$100,080	$125,100
8	$111,440	$139,300
Each additional person	add $11,360	add $14,200

Count gross yearly income from all sources, before taxes and deductions, for everyone in the household. FERA covers incomes from just above the CARE limit up to the FERA limit.

Qualify through another program. Your household can get CARE without an income test if anyone is enrolled in Medi-Cal, CalFresh (SNAP), WIC, SSI, LIHEAP, free school lunch, CalWORKs (TANF) or Tribal TANF, income-eligible tribal Head Start, or Bureau of Indian Affairs General Assistance.

Example (fictional): Rosa, her husband and two children earn $70,000 a year. That is above the $66,000 CARE limit for four but under the $82,500 FERA limit, so they apply for FERA. They get 18% off their electricity charges, and their base services charge drops from $24.15 to about $12 a month.

How to apply, and keep it

PG&E: pge.com/care or 1-866-743-2273.
SCE: sce.com/carefera or 1-800-798-5723. SCE says the online application takes minutes, with no proof of income needed up front.
SDG&E: 1-800-411-7343.

SCE also takes CARE/FERA calls in Spanish (1-877-226-6011), Chinese (1-800-843-8343), Korean (1-800-628-3061) and Vietnamese (1-800-327-3031), with TTY at 1-800-352-8580. PG&E accepts its paper form by mail (CARE/FERA Program, P.O. Box 29647, Oakland, CA 94604-7563) or fax (1-877-302-7563); SCE's mailing address is P.O. Box 9527, Azusa, CA 91702.

Have ready: your account number, the number of people in your home, each person's yearly income before taxes, or the name of the program (such as Medi-Cal or CalFresh) that anyone is enrolled in.

PG&E's form sets the ground rules: you must renew at least every two years and may be asked for proof of income; you cannot be claimed as a dependent on someone else's tax return, other than a spouse's; you cannot share a meter with another home; and electricity use above six times the baseline (Tier 1) allowance can disqualify you. SCE warns that unacceptable energy use can lead to removal (SCE form 14-782).

LIHEAP: help paying through CSD

The Low Income Home Energy Assistance Program (LIHEAP) helps eligible households pay energy bills and pays for weatherization. In California it is run by the Department of Community Services and Development (CSD). Call CSD at 1-866-675-6623 to find where to apply where you live (PG&E; CPUC).

LIHEAP is separate from your utility's discounts; you can have both.
Being enrolled in LIHEAP also qualifies your household for CARE.
Ask about the current income limits, how much help is available and how long it takes, and say so if you already have a shutoff notice.

Budget Billing, payment plans and debt relief

Budget Billing (PG&E). PG&E averages your monthly bills to smooth out summer and winter swings. Call 1-800-743-5000. It spreads your costs out; it does not lower the total. If SCE or SDG&E serves you, ask whether it offers a similar averaging plan.
Payment arrangements. If you have fallen behind, ask your utility to spread the past-due amount over time. The CPUC says it can help you negotiate a payment plan.
Emergency help. The CPUC says some gas and electric utilities offer cash assistance and special payment plans to customers facing financial hardship.
Debt forgiveness. SCE lists an Arrearage Management Plan (AMP) as a debt-forgiveness payment plan option. Ask your utility whether you qualify and how much of your past-due balance it could forgive.
Medical needs. If someone at home relies on powered medical equipment, see Medical Baseline: lower utility rates if someone at home relies on medical equipment.

If you get a shutoff notice

Get help now

Call 911 if someone at home is in danger because the power is off. For warning signs in hot weather, see Heat-related illness in the Central Valley; for equipment users, see A power outage plan for a household that uses medical equipment.

Check that it is real. Call the customer service number on your printed bill, not a number in a text, email or voicemail.
Call the utility the same day. Ask how much you must pay to avoid disconnection, ask for a payment arrangement, and ask about emergency help and debt-forgiveness plans.
Apply for discounts at once. Sign up for CARE or FERA if you qualify, and call CSD's LIHEAP line, 1-866-675-6623.
Tell the utility about medical needs. If someone relies on electricity for medical equipment or heating and cooling, say so, and ask about Medical Baseline.
Escalate if needed. If the utility will not work with you, file a complaint with the CPUC (see below).
Keep a record of every call: the date, the name of the person, what was promised and any reference number.

Water bills

Who sets your water rates depends on who supplies your water. The CPUC says that, depending on household income, you may qualify for discounted service from the water companies it oversees ("Water Company Assistance"). If a city, county or public water district sends your water bill, ask it directly about low-income discounts and payment plans.

For what is in your tap water, see How to find and read your water quality report.

Phone bills: California LifeLine

California LifeLine gives discounted home phone and cell phone service to qualified households, according to the CPUC. SCE's CARE/FERA forms list it among other assistance programs, and PG&E's form tells customers to contact their phone provider about discounted phone service. Ask your phone company whether it offers LifeLine and what proof of eligibility it needs.

If a phone company switches your service without your permission ("slamming") or adds charges you did not authorize ("cramming"), you can file an "Unauthorized Service Changes" complaint with the CPUC.

Energy-saving steps that make a real difference

Get every discount first. For an eligible household, CARE or FERA lowers both the per-kWh price and the fixed charge.
Check your rate plan. PG&E offers a personalized rate review at pge.com/findrates. The CPUC's rate comparison tool lets you look up standard, CARE and EV rates where you live.
Find your biggest loads. Your online utility account can help: PG&E's includes usage analysis and billing alerts. In the Central Valley, summer bills are driven mainly by cooling, so compare July with last July, not with January (see Your PG&E bill and the 2027 rate case).
Replace old appliances for free through the Energy Savings Assistance program, below, if you qualify.
Do not save by going without cooling when health is at stake. If anyone at home is at higher risk from heat, ask their clinician how to stay safe before you turn the air conditioning down. See medications that can raise heat risk.

Free weatherization and appliance upgrades

Energy Savings Assistance (ESA). The CPUC says ESA provides no-cost weatherization to households that meet the CARE income limits. PG&E describes free energy-efficient home improvements and appliances for income-qualified customers, owners and renters alike: call 1-800-933-9555. SCE's ESA can replace refrigerators and other electrical appliances with efficient models, installation included (SCE). SDG&E customers should ask SDG&E about its ESA program.
LIHEAP weatherization (CSD). LIHEAP also pays for weatherization services. Ask about it when you call CSD at 1-866-675-6623.

Renters should tell the landlord before any work starts, and keep a copy of what was installed.

Utility scams

A common scam is a call, text or knock warning that your power will be cut off within the hour unless you pay right now, often by gift card, cryptocurrency, wire transfer or a payment app. The site's guide Verify before you pay explains this "utility shutoff threat" and what to do.

Hang up and call the customer service number on your printed bill.
Never pay by a method you cannot reverse.
Never read out a one-time code sent to your phone.
Report the attempt to your utility; Verify before you pay lists where else to report it.

How to complain to the CPUC

Start with the utility. The CPUC asks you to try the utility's customer service first.
File an informal complaint. If that fails, use the CPUC's File a Complaint page, or call 1-800-649-7570 (Contacting the CPUC).
Pick the right type. "Utility Complaint" covers billing and service problems; "Public Safety Complaint" covers safety issues with gas, electric, phone, cable or water service; "Unauthorized Service Changes" covers slamming and cramming.
Go formal if needed. A "Formal Complaint" asks the Commission to order a utility to take corrective action.
Ask questions. For questions about rates or CPUC proceedings, the Public Advisor's Office answers at 1-866-849-8390 or public.advisor@cpuc.ca.gov.

Attach copies of your bills, notices and call notes. Keep paying any amount you do not dispute while the complaint is open.

Where to get free help

CARE and FERA: PG&E, 1-866-743-2273; SCE, 1-800-798-5723; SDG&E, 1-800-411-7343.
Energy Savings Assistance (PG&E): 1-800-933-9555. Budget Billing (PG&E): 1-800-743-5000.
LIHEAP bill help and weatherization: Department of Community Services and Development, 1-866-675-6623.
Complaints: CPUC Consumer Affairs, 1-800-649-7570, or online through File a Complaint.
Rate questions: CPUC Public Advisor's Office, 1-866-849-8390.
All CPUC assistance programs: the Financial Assistance, Savings and Discounts page.
Budgeting: A household budget, a safe bank account and the tax credits California families miss.

Sources

CARE/FERA Program — California Public Utilities Commission, income limits effective June 1, 2026 – May 31, 2027, accessed October 29, 2026
Base Services Charge (formerly Income-Graduated Fixed Charge), R.22-07-005, Track A — California Public Utilities Commission, Energy Division, presentation posted with Low Income Oversight Board materials, December 2025
Resolution E-5396: Implementation of PacifiCorp Income-Graduated Fixed Charges — California Public Utilities Commission, February 26, 2026
Draft Resolution E-5417: Liberty Utilities (CalPeco Electric) Base Services Charge — California Public Utilities Commission, Energy Division, April 30, 2026
CARE and FERA Programs (Form 14-828, Rev. 10/26) — Southern California Edison, October 2026
CARE/FERA Program Income Guidelines and Rate Discount Application (Form 14-782 LP) — Southern California Edison, revised December 2025
CARE/FERA Program Application, Residential Customers (Form 01-9077, Rev. 6.26) — Pacific Gas and Electric Company, June 2026
Financial Assistance, Savings and Discounts — California Public Utilities Commission, accessed October 29, 2026
Consumer Support — California Public Utilities Commission, accessed October 29, 2026
File a Complaint — California Public Utilities Commission, accessed October 29, 2026
Contacting the CPUC — California Public Utilities Commission, accessed October 29, 2026
California Electric Rate Comparison — California Public Utilities Commission, Public Advisor's Office, accessed October 29, 2026