Tiered Rates

How do tiered rates affect your bill?

Last Updated 9/1/2015

Your baseline allowance corresponds with the lowest rate per kWh. Electricity rates rise progressively as your electricity use reaches the second and third tiers. They also differ slightly from winter to summer.

Utility bills are changing

In late 2013, California passed a law — Assembly Bill (AB) 327 — to modernize the state’s energy rate structure. The goal of AB 327 was to make electric rates easier to understand, as well as establish more equitable and transparent energy pricing. 

CPUC decision

The California Public Utilities Commission (CPUC) recently voted to approve a new electric rate structure that will be phased in over the next few years with completion in 2019.  Electric rates will be consolidated from four tiers to two tiers, and the differences between the tiers will be reduced -- ultimately with a 25 percent differential between the two tiers. The consolidation is necessary to make rates more fair and equitable among all residential customers. 


September 2015: Consolidation from 4 tiers to 3 tiers

Spring 2016: Consolidation from 3 tiers to 2 tiers

2017: 2 tiers + “Super User” electric surcharge

2019: Time-of-Use Rates

More information

For more information about our rates, please check out Total Residential Electric Rates