The California Public Utility Commission (CPUC) recently approved the implementation of Income Graduated Fixed Charges (IGFC), otherwise known as “Flat Rate Pricing,” which brings a change in how utility costs are structured. The decision introduces standardized monthly flat rate pricing that will affect all Southern California Edison (SCE) and Pomona Choice Energy customers, starting in late 2025. The goal of this change is to create a fairer billing system based on customers’ income levels. 

The standard flat rate fixed charge, for a typical customer, will be $24.15 per month. However, customers enrolled in programs like the California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) are eligible for a discount. CARE customers will pay only $6 per month, while FERA customers will pay $12.08 per month.

The implementation of the IGFC is expected to reduce electricity rates by approximately seven cents per kilowatt-hour. It is important to note that this action will not increase the rates community choice aggregation customers pay. The IGFC will be charged by SCE, not Pomona Choice Energy. However, because SCE is responsible for distribution of electricity and billing for Pomona Choice Energy customers, they will also see these changes to their bill structure.

For more information about Flat Rate Pricing, visit SCE’s website.