California offers crucial financial assistance to low-income households struggling with energy costs through two main programs: the California Alternate Rates for Energy (CARE) program and the Family Electric Rate Assistance (FERA) program. These programs provide significant discounts on monthly utility bills, making energy more affordable for eligible residents.
California Alternate Rates for Energy (CARE) Program
The CARE program is designed to help low-income customers manage their energy expenses. Enrollees in the CARE program receive a substantial discount on their energy bills. Specifically, this includes a 30-35 percent discount on electric bills and a 20 percent discount on natural gas bills. This can significantly reduce the financial burden of essential utilities for qualifying households.
Eligibility for CARE is primarily based on household income. Customers are eligible if their total household income is at or below the specified income limits. These income limits are updated annually to reflect changes in the cost of living. The current income limits are effective through May 31, 2025, as detailed below:
| CARE Income Guidelines* |
|---|
| Household Size |
| 1-2 |
| 3 |
| 4 |
| 5 |
| 6 |
| 7 |
| 8 |
| Each Additional Person |
| * Effective June 1, 2024 to May 31, 2025 |
Beyond income, customers may also qualify for CARE if they are enrolled in certain public assistance programs. These programs include:
- Medicaid/Medi-Cal
- Women, Infants and Children Program (WIC)
- Healthy Families A & B
- National School Lunch’s Free Lunch Program (NSL)
- Food Stamps/SNAP
- Low Income Home Energy Assistance Program (LIHEAP)
- Head Start Income Eligible (Tribal Only)
- Supplemental Security Income (SSI)
- Bureau of Indian Affairs General Assistance
- Temporary Assistance for Needy Families (TANF) or Tribal TANF
The CARE program is funded through a surcharge on the bills of other utility customers, ensuring its sustainability and continued support for those in need. For electrical corporations with a large customer base (100,000 or more accounts in California), the discount is mandated at 30% – 35% as per Public Utilities Code Section 739.1. Smaller electrical corporations offer a 20% discount.
Family Electric Rate Assistance Program (FERA)
For families whose income slightly exceeds the CARE program limits, the Family Electric Rate Assistance (FERA) program offers another avenue for energy bill relief. FERA provides an 18% discount specifically on electricity bills. This program is available to customers of major California utility companies such as Southern California Edison, San Diego Gas and Electric Company, and Pacific Gas and Electric Company.
The income limits for FERA are set slightly higher than CARE, targeting households that are still income-constrained but don’t qualify for the deeper CARE discounts. The income limits for FERA, effective through May 31, 2025, are as follows:
| Household | 200% of Federal Poverty Guidelines (CARE/ESAP) +1 | 250% of Federal Poverty Guidelines (FERA) |
|---|---|---|
| 3 | $51,641 | $64,550 |
| 4 | $62,401 | $78,000 |
| 5 | $73,161 | $91,450 |
| 6 | $83,921 | $104,900 |
| 7 | $94,681 | $118,350 |
| 8 | $105,441 | $131,800 |
| Each Additional Person | $10,760 | $13,450 |
How to Apply for CARE and FERA
To apply for either the CARE or FERA program, or to get more detailed information, the first step is to contact your utility company directly. Each utility company manages its own application process and can provide specific guidance based on your location and circumstances.
You can reach out to your utility provider through the phone numbers and websites listed below:
| Phone Numbers and Websites for Energy Assistance Programs |
|---|
| Utility |
| PG&E |
| Edison |
| SDG&E |
| SoCalGas |
| Alpine Nat’l Gas |
| Bear Valley Elect |
| PacifiCorp |
| Liberty Utilities |
| Southwest Gas |
| West Coast Gas |
Taking advantage of the CARE and FERA programs can provide significant financial relief to eligible California residents, ensuring access to essential energy services. Don’t hesitate to contact your utility company to explore your eligibility and begin the application process.
