CARE and FERA in California: who qualifies for a lower electric bill

A household of four earning $66,000 a year or less can qualify for a discount of 30 to 35% on electricity in California, plus 20% off natural gas. The 2026-27 income limits are higher than many people expect, so it is worth checking even if you have never qualified before.

Two programs, two levels. The California Alternate Rates for Energy program (CARE) is the larger discount. The Family Electric Rate Assistance program (FERA) is for households that earn a little too much for CARE. FERA gives 18% off electricity. Both are run by the utilities under rules set by the California Public Utilities Commission (CPUC).

Who offers them. The CPUC lists PG&E, Southern California Edison, SDG&E, SoCalGas, Bear Valley Electric, PacifiCorp, Liberty Utilities, Southwest Gas, Alpine Natural Gas and West Coast Gas. If your utility is not on that list, ask it whether it runs its own bill assistance program.

Income limits (June 1, 2026 to May 31, 2027, total yearly household income before taxes, as listed by the CPUC):

1 or 2 people: CARE up to $43,280, FERA up to $54,100. 3 people: CARE up to $54,640, FERA up to $68,300. 4 people: CARE up to $66,000, FERA up to $82,500. 5 people: CARE up to $77,360, FERA up to $96,700. 6 people: CARE up to $88,720, FERA up to $110,900. For each additional person, add $11,360 to the CARE limit and $14,200 to the FERA limit.

Qualifying through another program. You may qualify for CARE without showing income if someone in your household is enrolled in Medi-Cal, CalFresh/SNAP, WIC, Supplemental Security Income (SSI), the National School Lunch Program, LIHEAP, Head Start (Tribal), TANF or Tribal TANF, or Bureau of Indian Affairs General Assistance.

The fixed charge matters too. California's big three utilities now add a monthly Base Services Charge of about $24.15. The CPUC says CARE customers pay about $6 a month instead, and FERA customers about $12. That part alone is about $216 a year for a CARE household.

An example, for illustration only. Say a household's electricity usage charges come to $150 in a summer month. A 30% discount would trim about $45, and the lower Base Services Charge saves about $18 more, for roughly $63 off that month. Your utility's bill will show the exact discount, which depends on your rate plan and usage.

Going electric while on CARE. If you add a heat pump or an EV, more of your energy shifts to electricity, so the electric discount covers a larger share of your total energy spending. Keep that in mind when comparing heat pump and gas costs.

How to sign up. Step 1: Add up everyone's yearly income in the household, including wages, Social Security, pensions and other benefits. Step 2: Compare it with the table above, or check whether anyone in the home is in one of the listed programs. Step 3: Apply through your utility. SCE takes applications online at sce.com or by phone at 1-800-798-5723, and PG&E has a downloadable CARE/FERA application form. Step 4: Watch for mail asking you to recertify or verify income later, and respond by the deadline so the discount continues.

Today's step: find your household size in the table and compare it with last year's total income. If you are under the line, the application usually takes a few minutes. Figures checked October 5, 2026; your utility has the final word on eligibility.