California’s new income-graduated fixed charge adds a flat monthly fee to most residential electric bills (often shown as a Base Services Charge). It’s not tied to how many kWh you use, so even low-usage households will see it. In exchange, utilities reduce part of the per-kWh price (CPUC)
What most homeowners need to know in 2026
- Many households will see a fixed charge around $24.15 per month (CPUC)
- Discounted tiers apply for income-qualified customers, commonly referenced around $6 per month for CARE and $12 per month for FERA (CPUC)
- Timing varies by utility. PG&E begins bill restructuring in March 2026 while SCE and SDG&E began in late 2025 (PG&E, SCE, SDG&E)
Legal disclaimer: Rates, bill components, and program eligibility rules can change. This article reflects publicly available utility and CPUC materials available as of March 4, 2026. Always verify details on your utility’s official rate pages and your most recent bill
What is the California fixed charge
Historically, many grid and customer service costs were bundled into the price you pay per kWh. California’s new approach moves some of those costs into a clear monthly line item
Think of your bill as two buckets
- Fixed costs to keep you connected (wires, meters, billing, service infrastructure)
- Usage costs for the electricity you consume (kWh)
With the new structure, you will usually see
- A fixed monthly charge (Base Services Charge)
- Lower usage-based rates compared to what they would have been without shifting some costs into the fixed charge (CPUC)
Why California made this change
The fixed charge framework was created under the policy direction of AB 205 and implemented by the California Public Utilities Commission (CA Legislature, CPUC)
Supporters point to a few goals
- More transparency in how grid costs are collected
- Less pressure to raise per-kWh prices to fund non-energy costs
- Support electrification by reducing some usage-based price components (CPUC)
When it shows up on your bill (why 2026 is the year it feels new)
Even if you heard about the policy earlier, many homeowners are noticing it now because rollout is utility-specific
- PG&E: restructuring and bill changes begin March 2026 (PG&E)
- SCE: Base Services Charge began November 2025 (SCE)
- SDG&E: Base Services Charge began October 2025 (SDG&E)
If you are a PG&E customer, March 2026 is a common “first time I see it clearly” moment because the bill structure highlights the base charge more explicitly (PG&E)
How much is the fixed charge in 2026
Most homeowners hear one headline number: about $24.15 per month for non-CARE and non-FERA households (CPUC)
For income-qualified customers, the fixed charge is lower, commonly referenced as
- CARE: about $6 per month (CPUC)
- FERA (and some qualifying affordable housing cases): about $12 per month (CPUC)
Quick table
| Customer category | Typical fixed charge you may see | Key note |
|---|---|---|
| Standard residential (not CARE/FERA) | ~ $24.15 per month | Applies even on low usage |
| FERA | ~ $12 per month | Reduced base charge if enrolled |
| CARE | ~ $6 per month | Lowest base charge tier |
Important nuance: in practice, the “income” structure is often administered through program enrollment (CARE or FERA) rather than utilities directly reviewing your tax return (CPUC)
Will your total bill go up or down
It depends on your usage profile and when you use electricity
A simplified view
Monthly bill = fixed charge + (kWh used × updated per-kWh price) + other fees
Who is most likely to feel an increase
- Low-usage homes (small households, efficient homes, second homes)
- People who already conserved aggressively
- Some solar households that import very little from the grid but still remain connected
Who may see a smaller increase (or sometimes a decrease)
- Higher-usage homes where lower per-kWh pricing offsets much of the fixed charge
- Households adding new electric loads (EV charging, heat pumps) depending on rate plan and timing
What this means for solar in 2026
Solar usually cannot remove the fixed charge
If you stay grid-connected, the base charge generally still applies because it is tied to connection and service, not your kWh usage (PG&E)
Solar value shifts toward avoiding expensive kWh
Because part of your bill becomes unavoidable, savings become more sensitive to
- Peak-hour imports on time-of-use plans
- Evening usage when solar production is low
Why batteries matter more under a fixed charge
A battery cannot eliminate the fixed fee, but it can reduce the costliest part of many California bills: buying electricity during peak pricing
A battery can help you
- Store daytime solar and use it at night
- Reduce peak imports under TOU pricing
- Add backup power value during outages
If your home is “evening heavy” (cooking, HVAC, EV charging after work), storage can be the difference between okay savings and strong savings
Strategies to reduce the impact in 2026
1) Check CARE and FERA eligibility
If you qualify, this is often the biggest lever because it directly reduces the fixed monthly charge (CPUC)
Action steps
- Confirm whether you are enrolled in CARE or FERA
- Recheck eligibility if household size or income changed
- If you are in deed-restricted affordable housing, confirm how your account is coded
2) Match your rate plan to your real usage
Most savings come from optimizing peak vs off-peak usage, especially if you have EV charging or heavy HVAC loads
3) Load shifting still works (and is usually the cheapest fix)
High-impact shifts
- Charge EVs off-peak
- Run dishwashers and laundry off-peak
- Pre-cool or pre-heat before peak hours
- Use smart thermostat schedules to reduce peak HVAC draw
4) If you are going solar, design for TOU reality, not just roof size
A good proposal should model
- Your annual kWh
- Your peak-hour consumption
- Your expected imports and exports
- Future loads like EVs and heat pumps
5) Add storage if you have high evening usage or want resilience
Storage tends to provide the most value for
- Homes with high peak imports
- EV households
- People who want backup power
- Solar owners looking to reduce peak-hour purchases
6) Take the “boring efficiency wins”
Efficiency still matters because it reduces the kWh portion of your bill year-round
- Insulation and air sealing
- HVAC tune-ups and duct sealing
- Heat pump water heaters
- Smarter thermostat settings
FAQ
Is this a new fee on top of everything
Utilities describe this as a restructuring, shifting some costs that used to be bundled into per-kWh prices into a fixed monthly charge (PG&E)
Why does it feel later for PG&E
Because PG&E’s restructuring and updated bill format begins in March 2026, while SCE and SDG&E implemented in late 2025 (PG&E, SCE, SDG&E)
Can solar remove the fixed charge
Usually not for grid-connected customers. Solar mainly reduces the kWh portion, while the fixed charge remains tied to connection and service (PG&E)
Bottom line
California’s fixed charge changes the rules in one sentence
You will pay a monthly base fee even if you use very little electricity, so the smartest savings focus is reducing expensive peak imports and optimizing your rate plan (CPUC)
Sources
CPUC AB 205 fixed charge fact sheet
https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/energy-division/documents/demand-response/demand-flexibility-oir/ab205_factsheet_050824.pdf
PG&E Base Services Charge and March 2026 restructuring
https://www.pge.com/en/account/billing-and-assistance/base-services-charge.html
SCE Base Services Charge fact sheet (effective November 2025)
https://www.sce.com/sites/default/files/custom-files/PDF_Files/BSC_Fact_Sheet_English_WCAG_FINAL_July_2025.pdf
SDG&E electric billing and Base Services Charge information
https://www.sdge.com/electric-billing