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Tiered Rates

How do tiered rates affect your bill?

Last Updated 9/1/2013

Your baseline allowance corresponds with the lowest rate per kWh. Electricity rates rise progressively as your electricity use reaches the second, third and fourth tiers. They also differ slightly from winter to summer.

You will see the biggest jump in your rates once your usage gets into the third and fourth tiers. One reason for this is because the electric rates for usage in tiers one and two were capped under State Assembly Bill AB1X. Therefore, any rate increases were allocated entirely in tiers three and four.

However, because of California Senate Bill 695, passed on Dec. 17, 2009, the California Public Utilities Commission is now authorized to increase the rates to tiers one and two and decrease the rates to tiers three and four. The increase to tiers one and two was necessary to make rates more fair and equitable among all residential customers.

Tier Breakdown By Summer/Winter

Residential Electric Rate

Tiers

Total standard electric rates per kWh

Summer

Winter

Baseline *

Tier 1

15¢

15¢

101% to 130% of baseline

Tier 2

17¢

17¢

131% to 200% of baseline

Tier 3

35¢

33¢

Above 200% of baseline

Tier 4

37¢

35¢