How do tiered rates affect your bill?
Last Updated 9/1/2015
Your baseline allowance corresponds with the lowest rate per kWh. Electricity rates rise progressively as your electricity use reaches the second and third tiers. They also differ slightly from winter to summer.
Utility bills are changing
In late 2013, California passed a law — Assembly Bill (AB) 327 — to modernize the state’s energy rate structure. The goal of AB 327 was to make electric rates easier to understand, as well as establish more equitable and transparent energy pricing.
The California Public Utilities Commission (CPUC) recently voted to approve a new electric rate structure that will be phased in over the next few years with completion in 2019. Electric rates will be consolidated from four tiers to two tiers, and the differences between the tiers will be reduced -- ultimately with a 25 percent differential between the two tiers. The consolidation is necessary to make rates more fair and equitable among all residential customers.
September 2015: Consolidation from 4 tiers to 3 tiers
Spring 2016: Consolidation from 3 tiers to 2 tiers
2017: 2 tiers + “Super User” electric surcharge
2019: Time-of-Use Rates
For more information about our rates, please check out Total Residential Electric Rates