Your SCE Bill Is Changing: What Irvinites Need to Know

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Southern California Edison’s new $24 grid fee will appear on customer bills in November.
Photo credit Matthew Henry

Earlier this summer, Southern California Edison (SCE) announced that it is restructuring how it charges customers for electricity in a way that will affect nearly every household in Irvine. The new billing format complies with California Assembly Bill 205, a state law passed in 2022 requiring utilities to separate fixed grid maintenance costs from energy usage.

Called a Base Services Charge, this monthly fee will appear on every residential bill. For most customers, the new charge will total $24, but lower-income households enrolled in CARE or FERA programs will pay reduced fees of $6 or $12 per month.

In the meantime, customers are already paying more for electricity. SCE implemented a 13% rate increase in October, citing the need to “support investments in the safety, reliability, and security of the electric grid” in an email to customers. That hike is separate from the upcoming Base Services Charge but took effect only a month before the new fee is scheduled to begin.

According to Jeff Monford, SCE’s Senior Advisor of Corporate Communications, the Base Services Charge is designed to be revenue neutral for SCE.

“Utilities do not earn more profit from this change,” Monford said in an interview with The Vine. “In the simplest terms, it shifts how existing costs to deliver power are shared among utility customers.”

Who Benefits and Who Doesn’t

Until now, the costs of maintaining the electrical grid such as poles, meters, and substations were bundled into the per-kilowatt-hour (kWh) electricity rate each customer pays. Under the new structure, those fixed costs will shift into the Base Services Charge, while the price per kWh will drop by about 10%, according to state estimates.

SCE and state regulators say the restructuring is intended to encourage electrification through the use of electric vehicles, induction cooktops, or heat pumps. Because these technologies require more power, lowering the cost per kWh is meant to make them more affordable to use.

“Residential customers who adopt clean energy solutions… are expected to increase their average monthly electricity usage,” Monford explained. “The reduction in cents-per-kilowatt pricing should benefit clean energy adopters, and high-usage customers in general, by reducing the cost of using greater amounts of electric power.”

For low-usage households, the new structure may have the opposite effect. Even if your energy use is minimal, you’ll still pay the flat Base Services Charge and potentially raise your total bill.

Solar customers may also feel the impact. While they’ll continue to benefit from generating and exporting their own power, the Base Services Charge cannot be offset by rooftop solar production. That means the financial advantage of solar may narrow, especially for households that keep overall energy use low.

10% Reduction or 3% Increase?

When AB 205 was passed, lawmakers projected that separating grid costs from energy usage would lower the price of electricity by roughly 10% per kilowatt-hour. Whether that goal will actually be achieved remains uncertain.

Monford told The Vine that SCE won’t know the final numbers until the California Public Utilities Commission (CPUC) approves the company’s 2025 General Rate Case, expected later this year. “The rate design process is ongoing,” he said, “and the final decision will determine how much customers pay per kilowatt-hour once the Base Services Charge takes effect.”

State regulators have emphasized that the 10% figure was an estimate, not a guarantee. Market conditions like fuel costs, wildfire mitigation, and infrastructure repairs could alter the outcome.

Meanwhile, the 13% rate increase that took effect this month means customers are already paying more. SCE described the hike as necessary to fund ongoing maintenance and wildfire safety programs, but the timing is unfortunate.

Even if the promised 10% reduction in per-kilowatt-hour pricing occurs next year, customers will still be paying roughly 3% more overall than they did before the rate hike, plus an additional $288 per year in fixed grid connection fees once the Base Services Charge begins. That means the “savings” touted by state regulators may feel more like a cost shift than a true reduction, particularly for small households, retirees, and solar adopters who typically use less power.

Monford acknowledged customer frustration over rising bills but emphasized that SCE is working to keep long-term rate growth modest.

“We know rising bills are difficult, especially in the current environment,” Monford said. “Our average residential rate actually dropped by 6% between June 2024 and June 2025, and our rates remain the lowest among the state’s investor-owned utilities. Looking ahead, we project rates will grow in line with or below inflation through 2028.”

He also noted that while the new Base Services Charge will separate grid costs from energy usage, it may not cover those costs entirely.

“We can’t foresee if the Base Services Charge will ever completely cover grid costs,” Monford said. “That would be determined by the Public Utilities Commission, which is charged with balancing numerous objectives, including affordability, customer impacts, and the appropriate level of cost to be recovered in a Base Services Charge.”

There is also no set timeline for any future rate changes or Base Services Charge adjustments, Monford added. “The Public Utilities Commission will continue to evaluate potential rate adjustments after reviewing the effect of the Base Services Charge sometime in 2026.”

To help customers manage bills, SCE offers several programs for eligible households, including payment extensions, one-time bill assistance, and medical baseline discounts.

“We have money-saving tools and programs, many of them income-qualified,” Monford said. “Details are available at SCE.com/helpmanagecosts.”

What It Means for Your Household

The new structure will affect residents differently depending on usage and electrification adoption:

• High-usage homes or EV owners: You may come out ahead, with savings on each kWh offsetting the new fee.

• Low-usage households: If you’re energy-frugal, your bill may rise, since you’ll pay the fixed Base Services Charge regardless of how little electricity you use.

• Solar customers: The new fee will cut into energy savings.

With Irvine’s strong usage of both solar energy and electric vehicles, many in the community could see higher energy bills once the restructuring takes effect.

What’s Next

The CPUC’s decision later this year will determine exactly how much rates fall (or rise) under the new billing model. In the meantime, residents can prepare by:

• Checking eligibility for CARE or FERA income-qualified programs.

• Exploring battery storage or time-of-use strategies to maximize savings.

• Lowering household energy usage to offset the impact of a fixed monthly fee.

For 2024, Edison International (SCE’s parent company) reported net income of $1,284 million, or $3.33 per share, an increase from the $1,197 million, or $3.12 per share, earned in 2023. While SCE maintains that the new billing model will not increase its profit margin, some residents will be challenged to adjust to the cost of electricity amid new fixed fees and rate adjustments.

As Irvine residents await the CPUC’s ruling, one thing is clear: the way we pay for power is changing. For many, understanding that shift may be the key to keeping energy costs under control.

Further Reading

For readers interested in learning more about how Southern California Edison sets its rates and how time-of-use billing works, explore these resources:

• Understanding Time-of-Use (TOU) Rates for Residential Customers

• General Rate Case: How Southern California Edison Determines Its Rates

You can also subscribe to Energized by Edison for updates and stories from Edison International.