Southern California Edison (SCE) offers various rate plans for residential customers, with the latest changes effective March 1, 2025. The average residential electricity rate is approximately 31.4 cents per kWh (29.4 cents per kWh with the California Climate Credit).
Best Rate Plans Overview
SCE’s residential rate plans generally include:
- Tiered Rate Plans: Charges based on usage tiers where electricity costs increase as more energy is consumed.
- Time-of-Use (TOU) Rate Plans: Prices vary depending on the time of day, encouraging customers to use electricity during off-peak hours.
- Electric Vehicle (EV) Rate Plans: Special rates for customers charging electric vehicles, often encouraging EV charging during off-peak hours.
While the specific “best” rate plan depends on individual usage patterns and lifestyle, many customers find Time-of-Use plans beneficial if they can shift their electricity use to lower-cost periods.
Recent Rate Changes and Impact
- SCE’s rates have decreased slightly in 2025 due to the removal of fully recovered costs and lower natural gas and power prices than forecasted, resulting in a small reduction in the average residential rate.
- Eligible customers receive a semi-annual California Climate Credit of $56, which lowers the effective cost of electricity.
- However, costs related to extended operations at Diablo Canyon Power Plant and transmission adjustments approved by the CPUC have influenced rate components and will contribute to increases over time.
- Typical residential customers could see an increase in their monthly bill by about $17.49 (10.3%) in 2025 due to infrastructure investments and other factors, with smaller increases in subsequent years through 2028.
Recommendations for Customers
- Review SCE’s current rate plans and consider enrolling in a Time-of-Use plan if able to shift electricity usage to off-peak hours to save money.
- Take advantage of the California Climate Credit as it effectively reduces your bill.
- Use SCE’s home energy efficiency tools and rebates to reduce overall consumption and costs.
- Stay informed about annual rate changes and plan accordingly as investments in infrastructure may cause incremental increases over the next several years.
For tailored advice, customers should check their usage patterns against available rate plans on SCE’s official website or contact SCE directly to determine which plan is the most cost-effective based on their household’s unique electricity consumption.
In summary, the best rate plan depends on your usage habits, but Time-of-Use plans coupled with energy-saving practices generally provide good savings opportunities under SCE’s current offerings and recent rate updates. These changes reflect a complex balance of cost recovery and incentives aimed at promoting efficiency and supporting grid improvements.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-best-rate-plans-available-for-southern-california-edison-customers/
