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California utilizes a "categorical eligibility" system to streamline access to utility relief. If you are already enrolled in public assistance programs like Medi-Cal, Cal Fresh, WIC, or LIHEAP, you likely qualify automatically for energy discounts. This interconnected safety net allows you to "stack" benefits, combining monthly rate reductions with debt forgiveness and efficiency upgrades.
These programs are standardized across the major Investor-Owned Utilities (IOUs): PG&E, SCE, SDG&E, and SoCalGas. While the application forms may look different, the core benefits and income limits are regulated by the California Public Utilities Commission (CPUC). This ensures equitable access to essential services regardless of which company manages your local grid.
Key Takeaways
- CARE & FERA Discounts: The California Alternate Rates for Energy (CARE) program mandates a 30-35% discount on electric bills and 20% on gas. The Family Electric Rate Assistance (FERA) program offers an 18% discount on electricity for households of three or more.
- Debt Forgiveness: The Arrearage Management Plan (AMP) can erase up to $8,000 in past-due utility debt. For every on-time payment of your current bill, 1/12th of your old balance is forgiven.
- Medical Baseline: This non-income-based program provides an additional energy allowance at the lowest rate for households with qualifying medical devices (e.g., CPAP, dialysis) or conditions requiring temperature control.
- Free Home Upgrades: The Energy Savings Assistance (ESA) program offers no-cost weatherization and appliance upgrades to eligible renters and homeowners earning up to 250% of federal poverty guidelines.
- New Fixed Charges: Starting in late 2025 or 2026, a new billing structure will introduce a fixed monthly charge (approx. $6 for CARE customers) while lowering the price per kilowatt-hour by 5-7 cents.
The California Alternate Rates for Energy (CARE) program is the state's most widely used assistance tool. It provides a mandatory 30-35% discount on electricity and a 20% discount on natural gas. This discount applies to your usage rates, directly lowering the cost of every kilowatt-hour or therm you consume.
You qualify if your household income meets specific guidelines or if a household member participates in a qualifying public assistance program. The income limits are updated annually to reflect economic conditions.
CARE Income Limits (Effective June 1, 2025 – May 31, 2026)
| Household Size | Income Eligibility Upper Limit |
| 1-2 | $42,300 |
| 3 | $53,300 |
| 4 | $64,300 |
| 5 | $75,300 |
| 6 | $86,300 |
| Each Additional | +$11,000 |
The Family Electric Rate Assistance (FERA) program targets households with 3 or more members who earn slightly too much to qualify for CARE. FERA provides an 18% discount on electricity bills. It is designed to help the "missing middle"—working families who still struggle with high energy costs.
Unlike CARE, FERA applies only to electricity and does not provide a discount on natural gas. Additionally, households of one or two people are generally not eligible, as the program specifically addresses the higher energy burdens of larger families.
FERA Income Guidelines (Effective June 1, 2025 – May 31, 2026)
| Household Size | Income Range |
| 3 | $53,301 – $66,625 |
| 4 | $64,301 – $80,375 |
| 5 | $75,301 – $94,125 |
| 6 | $86,301 – $107,875 |
The Arrearage Management Plan (AMP) offers a structured path to debt forgiveness for customers with significant unpaid bills. To qualify, you must be enrolled in CARE or FERA and have past-due debt of at least $500, with some portion being 90 days old.
How AMP Works:
You can miss up to two non-consecutive payments without being dropped from the program. However, if you miss two payments in a row, you may be removed. Any debt forgiven in previous successful months remains forgiven.
The Medical Baseline Allowance is a critical safety program that is not income-based. It is designed for residents who require specific medical equipment or temperature control for their health. Enrollment provides an additional "baseline" energy allotment (approx. 500 kWh electricity or 25 therms gas) at the lowest possible price tier.
Qualifying Conditions & Devices:
Important Exception: For customers of SMUD (Sacramento), CPAP and BiPAP machines are explicitly excluded from their specific Medical Equipment Discount.
The Energy Savings Assistance (ESA) program provides no-cost home improvements to increase energy efficiency. This program is available to both homeowners and renters (with owner permission) who meet the income guidelines of 250% of Federal Poverty Guidelines.
Available Upgrades:
Federal funding for water and internet assistance has shifted, leading to new state-level initiatives.
Water Bill Assistance: The federal Low Income Household Water Assistance Program (LIHWAP) ended in March 2024. Remaining funds were distributed as supplemental benefits in May 2024, and no new applications are accepted. You should contact your local water district immediately to ask about internal hardship programs, such as https://www.calwater.com/customercare/customer-assistance-program-cap/, which offers discounts for low-income households.
Internet Service (Life Line & Broadband Pilot): With the end of the Affordable Connectivity Program (ACP), the California Life Line program is the primary support vehicle.
When government programs are unavailable, utility-operated charitable funds can provide emergency cash grants. These are funded by donations and shareholders, not ratepayers.
Municipal utilities operate independently from the state's investor-owned utilities and offer unique relief structures.
Los Angeles Department of Water and Power (LADWP):
Sacramento Municipal Utility District (SMUD):
A major change is coming to California utility bills under Assembly Bill 205, expected to implement in late 2025 or 2026. The Income Graduated Fixed Charge will split your bill into a fixed fee and a reduced usage rate.
Projected Structure:
This change allows for a reduction in the price per kilowatt-hour of 5 to 7 cents. This benefits low-income households who rely on electricity for essential needs like cooling and medical devices.
| Utility | Program | Application / Info URL | Phone |
| PG&E | CARE / FERA | pge.com/care | 1-866-743-2273 |
| SCE | CARE / FERA | sce.com/care | 1-800-798-5723 |
| SDG&E | CARE / FERA | sdge.com/care | 1-800-411-7343 |
| SoCalGas | CARE | socalgas.com/care | 1-800-427-2200 |
| LADWP | EZ-SAVE | ladwp.com/cares | 1-800-342-5397 |
| SMUD | EAPR | smud.org/LowIncome | 1-888-742-7683 |
| Statewide | LifeLine | californialifeline.com | 1-866-272-0349 |
| Statewide | LIHEAP | csd.ca.gov/liheap | 1-866-675-6623 |
Yes, the Arrearage Management Plan (AMP) forgives up to $8,000 of eligible past-due debt for CARE or FERA customers who make 12 consecutive on-time monthly payments. For every on-time payment you make, 1/12th of your old debt is permanently erased, offering a path to zero balance without immediate lump-sum requirements.
Through December 31, 2025, PG&E offers the "Match My Payment" program, which provides a dollar-for-dollar match up to $1,000 to help reduce past-due balances. This temporary program has higher income limits than standard assistance and can be combined with other relief options like REACH for maximum debt reduction.
You should apply for CARE to receive a 20-35% discount if your income is near the federal poverty line, whereas FERA is designed specifically for larger households (3+ people) with slightly higher incomes and offers an 18% discount. You cannot enroll in both, so select FERA only if your income exceeds the stricter CARE limits but you still need relief for a larger family.
If a household member requires electrically powered medical equipment (such as CPAP machines or dialysis), the Medical Baseline Allowance grants an additional daily energy allotment at the lowest possible baseline price. This is not a direct percentage discount, but rather a modification of your rate tier to prevent high costs caused by necessary life-sustaining equipment usage.
Enrolling in structured relief programs like AMP or establishing a certified Medical Baseline status generally places a hold on service disconnections as long as you maintain the agreed-upon current payments. However, you must actively communicate with your provider (PG&E, SCE, or SDG&E) to formalize these protections before a disconnection occurs.
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