Learn More About Energy Rates

Southern California Edison has been providing electric service to southern and central California for 130 years, and for much of that time, residential customers did not have much choice among rate plans. Thanks to rapidly advancing technology, that is changing, allowing SCE to develop rate plan offerings that customers can choose to best suit their individual electricity usage patterns.  

Nearly all of SCE’s residential customers are currently on the Standard Residential Rate plan, also known as a “tiered” rate plan; the customer gets billed for electricity used during their monthly billing cycle, with their cents-per-kilowatt-hour rate increasing as they pass certain “tier” thresholds. There are no plans to eliminate this Standard plan any time in the foreseeable future.

SCE recently began offering the option of Time-of-Use (or TOU) Rate plans to residential customers (there are three residential TOU plans available). In a TOU plan, there are parts of the day that are considered on-peak, and parts of the day considered off-peak or super-off-peak. When customers use electricity during off-peak or super-off-peak hours, they are charged a lower rate. Conversely, when using electricity during on-peak hours, they are charged a higher rate.

Currently, residential off-peak or super-off-peak hours are weekday morning hours before noon and weekday evenings after six or eight p.m., depending on the plan. Weekends are always charged at only the off-peak or super-off-peak rates. 

A TOU plan is beneficial to those that can shift electricity usage to off-peak and super- off-peak hours. If not, the Standard Residential Rate plan is probably a better choice.  

From SCE’s perspective, the most important thing about offering rate plan options is that each customer finds the rate plan that works best for their individual needs. To help you get the most value out of every dollar you spend on electric service contact SCE’s Customer Support Line (1-800-655-4555) and ask a Customer Service Representative to help find the best rate for your needs; or visit www.sce.com/rates.

The state of California is requiring investor-owned electric utilities (SCE, PG&E and SDG&E) to transition all of their residential customers to TOU Rate plans by year-end 2020; once customers are transitioned, they can choose whether they want to remain on a TOU Rate plan or return to a Standard Rate plan.

California is #1 in the U.S. in solar power, dramatically increasing our power supply in recent years from large-scale solar projects. For utilities like SCE, this has driven down the cost to deliver electricity in mid-day hours, when solar generation is abundant.

At the same time, it has increased the cost to deliver electricity in the late afternoon and early evening, when renewable energy supply decreases and demand for electricity is still high.