Electricity Rates in Los Angeles: Costs, Providers, and How to Save

Los Angeles residents pay some of the highest electricity rates in the country, making energy costs a serious factor in household budgets. As of 2025, the average electricity price in LA is approximately 28.6 cents per kilowatt-hour (kWh) according to data from the U.S. Bureau of Labor Statistics (BLS).

Legal Disclaimer: The electricity rates and costs mentioned in this article are based on research and publicly available data as of 2025. These figures are subject to change and may vary based on location, provider, and consumption patterns. We encourage readers to check with their local utility providers for the most up-to-date pricing and policies.

For accurate and up-to-date electricity rates, always check with LADWP (www.ladwp.com) or SCE (www.sce.com) to confirm current pricing and program details.

LA vs. California vs. U.S. Average Electricity Rates

RegionAverage Price per kWh (Cents)
Los Angeles28.6
California31.7
National15.5

While LA’s rates are slightly lower than California’s statewide average, they remain significantly higher than the national average. The high costs are influenced by climate policies, aging infrastructure, wildfire mitigation efforts, and a growing investment in renewable energy.

Average Monthly Electricity Bills in Los Angeles

The average monthly electricity bill in LA is around $275, approximately 16% higher than the national average. However, actual costs depend on household size, energy consumption, and efficiency upgrades.

Estimated Monthly Bills by Household Size

Household SizeEstimated Bill ($)
Studio Apartment60 – 90
1-Bedroom Apartment80 – 120
2-Bedroom Apartment130 – 180
Single-Family Home180 – 250

Most Expensive Electricity Bills in California

CityAverage Monthly Bill ($)
San Diego160 – 210
Los Angeles140 – 180
San Francisco130 – 170

Most Affordable Electricity Bills in California

CityAverage Monthly Bill ($)
Sacramento135 – 175
Fresno125 – 160
Bakersfield100 – 120

Nationally, LA has some of the highest utility bills, with the average total utility bill (electricity, water, and gas) reaching $455 per month, compared to the national average of $351.

Understanding Electricity Rate Structures in Los Angeles

Electricity rates in LA follow tiered pricing and Time-of-Use (TOU) pricing structures.

  • Tiered Pricing: The more electricity you use, the higher the per-kWh rate you pay.
  • TOU Pricing: Prices vary based on when electricity is used. Peak hours (4-9 PM) have higher rates to manage demand.

Electricity Providers in Los Angeles

Los Angeles is primarily served by two electricity providers:

  1. Los Angeles Department of Water and Power (LADWP) – The nation’s largest municipal utility.
  2. Southern California Edison (SCE) – A private utility serving areas around LA.

LADWP Rates (As of 2024)

Rate PlankWh Pricing (Cents)
Tiered RatesTier 1: 20.0Tier 2: 25.9
TOU RatesOff-Peak: 19.5Low Peak: 22.3High Peak: 27.0

SCE Rates (As of 2024)

Rates vary between 27 – 32 cents per kWh, making it more expensive than LADWP in most cases.

Proposed SCE Changes for 2025-2026

  • New fixed monthly charge: $24.15 for standard customers
  • 5-7% reduction in per-kWh rates
  • Additional discounts for low-income customers

Factors Driving High Electricity Costs in Los Angeles

Several factors contribute to LA’s high electricity rates:

  1. Aging Infrastructure & Maintenance Costs – Upgrading the electrical grid is expensive.
  2. Regulatory & Green Energy Policies – California’s strict environmental regulations impact pricing.
  3. Peak-Hour Pricing – TOU rates increase costs during high-demand hours.
  4. Wildfire Prevention Costs – Billions have been invested in reducing fire risks.
  5. Renewable Energy Investments – Transitioning to solar and wind requires infrastructure upgrades.

How to Lower Your Electricity Bill in Los Angeles

Despite high rates, there are several ways to save money:

1. Energy-Efficient Appliances

Switching to Energy Star-certified appliances can reduce consumption by 20-30%.

2. Time Your Energy Use Wisely

  • Run appliances during off-peak hours (before 4 PM or after 9 PM) to take advantage of TOU pricing.
  • Charge electric vehicles (EVs) overnight when electricity rates are lower.

3. Home Insulation & Weatherproofing

  • Upgrading insulation can reduce cooling/heating needs and lower energy bills by 10-20%.

4. Take Advantage of Solar Incentives

Los Angeles is an excellent city for solar power. Incentives include:

  • Federal Investment Tax Credit (ITC): 30% deduction on solar installation costs.
  • Self-Generation Incentive Program (SGIP): Rebates for battery storage.
  • LADWP Net Metering: Earn bill credits for excess solar energy fed into the grid.

Conclusion

Electricity costs in Los Angeles remain among the highest in the country. Understanding rate structures, energy-saving habits, and available incentives can help residents manage and reduce their electricity bills.

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