California Alternate Rates for Energy (CARE) Discount

Quick Facts

• Purpose: CARE protects low-income Californians from high energy burdens by automatically cutting residential electric bills by at least 30% and natural gas bills by 20%.
• Oversight: The California Public Utilities Commission mandates the program for investor-owned utilities (IOUs) and reimburses them through the Public Purpose Program surcharge. Utilities handle intake, verification, and bill credits.
• Scope: Over 1.6 million households participate statewide across utilities like PG&E, SCE, SDG&E, SoCalGas, Liberty, Bear Valley, and PacifiCorp. Discounts apply to usage charges, not delivery fees, but the savings compound with budget billing, arrearage forgiveness, or payment plans.
• Enrollment: Apply online, by phone, or via mail with your utility. Most customers receive instant approval if they attest to program participation or income levels and agree to income verification audits.
• Why it matters: With California electricity rates rising faster than inflation, CARE can save a typical household $700-$1,200 annually, making it crucial for seniors on fixed incomes, renters with electric heating, and families running medical equipment.

How the CARE Program Works

CARE lowers monthly bills by subsidizing a portion of the energy you consume. When you enroll, your utility assigns the CARE rate schedule to your account. Every month, the utility calculates your usage charges at the discounted rate. Delivery charges, taxes, public purpose surcharges, and other fees remain, but the usage discount significantly reduces the overall bill.

The program is funded through a small surcharge on other customers’ bills. Regulators require utilities to minimize enrollment barriers, conduct outreach in multiple languages, and coordinate with community-based organizations. Many utilities allow digital signatures and immediate enrollment over the phone, making the process quick and accessible.

CARE often pairs with the Family Electric Rate Assistance (FERA) program, which provides an 18% electric discount for households with slightly higher income (200%–250% of FPG) but three or more people. If your income fluctuates above and below the CARE threshold, ask the utility to evaluate you for both programs so you remain on some form of discount year-round.

Eligibility Criteria and Documentation

You qualify if your gross annual household income is at or below 200% of the Federal Poverty Guidelines. For 2025, that is $30,120 for a single-person household, $40,880 for two people, $51,640 for three, and $62,400 for four. Add $10,760 for each additional household member. Utilities consider all people living at the service address who share expenses. College students or roommates with separate leases may qualify separately if they can prove separate household status; talk with the utility for instructions.

You can also qualify automatically if you participate in certain means-tested programs:

• Medi-Cal (Medicaid)
• CalFresh (SNAP)
• CalWORKs (TANF)
• Supplemental Security Income (SSI)
• Low Income Home Energy Assistance Program (LIHEAP)
• Women, Infants, and Children (WIC)
• National School Lunch Program (NSLP)
• Tribal TANF or Bureau of Indian Affairs General Assistance
• Head Start (income eligible)
• Veterans or Survivors Pension

When applying, you may self-certify income, but utilities perform post-enrollment audits. Keep documentation such as pay stubs, tax returns, Social Security award letters, or unemployment statements for at least three years in case of verification.

Benefits Beyond the Rate Discount

CARE enrollment provides more than a lower bill:

• Protection from seasonal spikes: Because the discount is percentage-based, it scales with your usage. If you run air conditioning in heat waves or electric heat in winter, your discount grows proportionally.
• Automatic eligibility for payment plans: Utilities often fast-track CARE customers for extended payment arrangements, arrearage forgiveness, or shutoff moratoria in emergencies.
• Access to energy efficiency programs: CARE customers receive priority for free in-home energy audits, appliance replacement programs, smart thermostat installations, and weatherization services funded by the Energy Savings Assistance Program (ESAP).
• Crisis relief coordination: During disasters (wildfires, storms, pandemics) utilities offer bill credits or temporary rate freezes for CARE customers first. Enrolling early ensures you are flagged in their system.
• Tax and benefit interactions: Using CARE does not count as taxable income and does not affect eligibility for other public benefits, making it a safe add-on to your financial toolkit.

Enrollment Steps by Utility

Although details differ slightly, the overall process is similar statewide:

1. Gather account information: Have your utility account number, service address, contact information, and the names/birthdates of household members ready.
2. Choose an application channel: Utilities offer online forms, downloadable PDFs, phone enrollment, and sometimes in-person sign-ups at community events. For example, PG&E’s online form provides instant confirmation, while SCE’s automated phone line (1-800-447-6620) accepts verbal applications.
3. Attest to eligibility: Select whether you qualify via income or program participation. Provide total household income and number of people. If using program participation, include the program name and case number if available.
4. Sign the certification: Agree to notify the utility within 30 days if your income exceeds the limit or household size changes, and acknowledge that providing false information may trigger back-billing and penalties.
5. Submit and receive confirmation: Most customers receive immediate approval. If the utility needs additional documentation, respond promptly.
6. Watch your bill: The CARE line item should appear within one or two billing cycles. If not, call customer service with your application reference number.

Maintaining Eligibility

• Recertification: Households under age 62 must recertify every two years; seniors and permanently disabled customers recertify every four. Utilities send notices by mail, email, or text. Complete the recertification on time to avoid removal.
• Post-enrollment verification: Utilities randomly audit accounts. If selected, you must provide proof of income (e.g., last two months of pay stubs, prior year’s tax return, benefit award letters). Respond within the stated timeframe—usually 30 days—to avoid losing the discount.
• Report changes: If your income rises above the threshold or your household merges with another, contact the utility to transition off CARE or evaluate eligibility for FERA. You can reapply later if circumstances change.

Maximizing Savings

• Pair with budgeting tools: Enroll in equal payment or budget billing so seasonal spikes are spread across the year while the CARE percentage applies to every bill.
• Use energy efficiency programs: Request a free ESAP audit. Technicians can replace inefficient refrigerators, air conditioners, light bulbs, and weather stripping, further cutting usage.
• Leverage medical baseline allowances: If someone in your home uses life-support equipment or has a medical condition requiring higher energy use, combine CARE with the Medical Baseline program to receive extra kilowatt-hours at the lowest tier rate.
• Stack with arrearage management: Ask about Arrearage Management Plans (AMP) or debt forgiveness programs. Many utilities offer credits that forgive a portion of past-due balances for each on-time payment while you stay on CARE.
• Monitor consumption: Review your online account for hourly usage data. Identify peak periods and adjust thermostat settings, laundry schedules, or appliance use to reduce overall consumption.

Example Savings Scenarios

• Apartment household in Los Angeles: A two-person family spends $120 per month on electricity through LADWP for water heating and cooking. After switching to SoCal Edison service due to relocation, they enroll in CARE and cut the electric bill to roughly $84—saving $432 annually. They also enroll in SoCalGas CARE for heating, reducing winter gas bills by 20%.
• Senior homeowner in Chico: Lives alone on $1,450 Social Security. CARE drops the PG&E electric bill from $160 to $112 per month, freeing $576 annually. Participation in the Medical Baseline program adds an extra 500 kWh at the lowest tier, further reducing the bill during wildfire smoke events when air purifiers run continuously.
• Large household in Imperial Valley: A family of six qualifies via CalFresh. The desert climate requires heavy summer cooling, pushing monthly bills to $400. CARE trims at least $120 per month. They add FERA when their income briefly increases above the CARE threshold, ensuring an 18% discount instead of losing assistance entirely.

Coordinating with Other Resources

• Energy Savings Assistance Program (ESAP): Free energy efficiency upgrades tailored to CARE customers.
• Low Income Home Energy Assistance Program (LIHEAP): Provides lump-sum credits for heating and cooling. Use CARE to lower ongoing bills while LIHEAP covers seasonal spikes.
• Weatherization Assistance Program (WAP) and community solar: Nonprofit and local government programs often prioritize CARE households for solar panel grants or community solar subscriptions.
• Water or wastewater discounts: Some municipalities (e.g., Los Angeles, San Francisco) automatically enroll CARE customers into water/sewer discounts because the income screening is identical. Provide your CARE approval letter to tap these savings.
• Disaster relief credits: When Governor-declared emergencies occur, CARE customers may qualify for bill forgiveness or deposit waivers. Monitor utility alerts and register contact preferences to receive notices.

Avoiding Common Pitfalls

• Ignoring recertification mailers: Missing the deadline removes the discount and can trigger back-billing. Set calendar reminders and update your contact information with the utility.
• Providing inaccurate household size: Utilities can audit using credit bureau address checks. Be truthful; if you share housing but maintain separate finances, be prepared to prove separate kitchens or leases.
• Switching accounts during a move without reapplying: CARE does not automatically transfer when you change addresses or utilities. Submit a new application as soon as you know your move-in date.
• Overlooking multifamily benefits: Renters whose landlords pay utilities can sometimes secure CARE by documenting that energy costs are included in rent. Request a Landlord Authorization form from the utility.

Application Support

• Community-based organizations: Reach out to organizations such as 211, local Community Action Agencies, Catholic Charities, or Asian Pacific Islander community centers. They host enrollment clinics and can scan documents.
• Utility outreach teams: Utilities maintain multilingual outreach staff. Request interpreters for Spanish, Chinese, Vietnamese, Tagalog, Korean, and other languages.
• CPUC Public Advisor’s Office: Contact them if you encounter systemic barriers or suspect discrimination in enrollment.

Contact Information

• PG&E CARE: https://www.pge.com/care or call 1-866-743-2273.
• Southern California Edison CARE: https://www.sce.com/care or call 1-800-447-6620.
• SDG&E CARE: https://www.sdge.com/care or call 1-877-646-5525.
• SoCalGas CARE: https://www.socalgas.com/save-money-and-energy/assistance-programs/care or call 1-877-238-0092.
• CPUC CARE/FERA overview: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/care-fera-program

By combining CARE with complementary utility, state, and federal supports, households can control energy costs, catch up on past-due balances, and invest savings in long-term resilience measures like efficient appliances or emergency funds.