If you’re a homeowner in Southern California, brace yourself: California electric rate increases are hitting hard. Both San Diego Gas & Electric (SDG&E) and Southern California Edison (SCE) have implemented significant rate hikes, and the impact on monthly utility bills is already being felt across the region.
Whether you’re in San Diego, Riverside, or Orange County, understanding why electricity prices are rising in California—and what you can do about it—is more important than ever.
SCE Rate Hike Approved by CPUC
The California Public Utilities Commission (CPUC) has approved a 10% rate increase for Southern California Edison (SCE) effective October 1, 2025. For the average household, this means an extra $17 per month or $200 per year added to your electric bill. The increase funds wildfire safety measures, infrastructure upgrades, and future grid reliability.
Read more here.
After this hike, SCE’s average residential rate jumps to $0.353 per kWh (or $0.333 with the Climate Credit). A typical 500 kWh/month household will see bills rise from $171.17 to $193.23, a 12.9% increase. CARE customers face a 13.3% increase.
See SCE’s official advisory.
SDG&E Rate Increases Approved by CPUC
San Diego Gas & Electric customers are facing some of the highest electricity costs in the country. As of mid-2025, SDG&E residential rates have climbed 4.5% to 9.7%, depending on your billing structure. That means the average cost per kilowatt-hour is now approaching $0.397, making San Diego one of the most expensive regions for electricity in the U.S.
Why the spike? SDG&E cites wildfire mitigation, grid modernization, and compliance with California’s clean energy mandates as key drivers. These investments include undergrounding power lines and upgrading infrastructure to reduce fire risk—critical improvements, but ones that come at a steep cost for homeowners.
To soften the blow, SDG&E applied an $81.38 California Climate Credit to October bills as part of the state’s Cap-and-Trade program. While helpful, this credit is temporary and does little to offset the long-term trend of rising rates.
https://www.msn.com/en-us/weather/climate-change/look-for-80-climate-credit-on-your-electricity-bill-in-october/ar-AA1NL3TR.
SDG&E and SCE Rate Hikes: The Breakdown
According to the California Public Utilities Commission (CPUC), SDG&E residential customers saw their rates increase by 4.5% to 9.7% starting in June 2025. Meanwhile, SCE customers are facing a 12.9% spike in average monthly bills, with some CARE customers seeing increases of over 13%.
These changes mean that:
- SDG&E customers are now paying up to $0.397 per kWh, among the highest electricity rates in the U.S.
- SCE customers using 500 kWh/month are seeing bills rise from $171 to over $193.
These figures are part of a broader trend of California utility bill spikes that have accelerated over the past decade.
Why Are Electricity Rates Rising in California?
The reasons behind these California electricity rate increases are complex but consistent across utilities:
- Wildfire Mitigation Costs: Utilities are investing billions to underground power lines and reduce fire risk. In 2025, wildfire-related expenses make up 15% of SDG&E’s revenue requirement and 21% for PG&E.
- Infrastructure Upgrades: Aging electrical grids require modernization. SCE is spending $1.685 billion on new infrastructure this year alone.
- Policy-Driven Billing Changes: New legislation like AB 205 is restructuring how utilities charge customers, introducing fixed fees and removing temporary credits that previously softened the blow.
These factors are driving electric rate hikes across California, and experts warn that more increases are likely in the coming years.
The Bigger Picture: A Decade of Rising Costs
Over the past 10 years:
- SDG&E residential rates have increased by 71%
- SCE rates are up 83%
- PG&E rates have surged by 104%
These increases far outpace inflation and make California energy costs in 2025 some of the highest in the nation.
How Baker Home Energy Can Help You Lower Your Electric Bill
If you’re wondering how to lower your electric bill in California, Baker Home Energy offers proven solutions:
- Solar panel installations to reduce reliance on utility providers
- Battery storage systems to avoid peak pricing and outages
- High-efficiency HVAC upgrades to cut energy consumption
- Flexible financing and expert guidance on rate plans and incentives
With over 30,000 customers served, Baker is San Diego’s trusted partner for energy-efficient home upgrades and whole-home energy solutions.
Take Control of Your Energy Costs Today
Don’t wait for the next rate hike. Whether you’re looking to avoid SDG&E rate increases, explore solar solutions for high electric bills, or compare California electricity rates, Baker Home Energy is here to help.
📞 Call Baker at 877.578.8080 or https://www.bakerhomeenergy.com/residential/request-pricing
