The problem is, the total doesn’t tell you why it’s so high, whether you’re on the right plan, or whether solar would even help you.
So here’s your bill, line by line. Where your money goes, and the three things to find on your bill before you talk to any solar company, including me.
What you’re really paying per kilowatt-hour
Start with the number that matters most: what you pay for each kilowatt-hour (kWh).
| Electric utility company | Average home rate, June 2026 | Change since January 2016 |
|---|---|---|
| PG&E | about 34 cents per kWh | up 69% |
| SCE | about 34 cents per kWh | up 101% |
| SDG&E | about 46 cents per kWh | up 97% |
Source: CPUC Public Advocates Office, Q2 2026 Electric Rates Report (average rates before the California Climate Credit).
The Public Advocates Office points out that’s faster than inflation. So if your bill feels a lot higher than it did a few years ago, it’s not your imagination. (Here’s why California rates keep going up.)
The two halves of your bill: delivery and generation
Every electric bill from PG&E, SCE or SDG&E is really two bills in one.
Delivery is what your electric utility company charges to get the power to your house. That’s the poles, the wires, the transformers and the people who fix them. No matter who makes your electricity, delivery always comes from PG&E, SCE or SDG&E.
Generation is the cost of the electricity itself. This is where a lot of people get confused. In many cities, your generation doesn’t come from your electric utility company at all. It comes from a community choice provider, like Clean Power Alliance in the LA area, San Diego Community Power, or MCE in the Bay Area.
If your city has one, you’ll see its name on your bill as a separate line for generation. Your electric utility company then credits back its own generation charge, so you’re not paying twice.
You’ll usually also see a line called the PCIA. That stands for Power Charge Indifference Adjustment. It covers power contracts your electric utility company signed years ago, before your city switched. Everyone pays some version of it. If you get your generation from the utility, it’s folded into the generation charge instead of showing up on its own line.
First thing to check: do you have a community choice provider? It changes your rates and how your solar credits work.
The Base Services Charge
This is the newest line on your bill. It’s a fixed charge of about 79 cents a day, no matter how much power you use.
| Who | About how much |
|---|---|
| Most homes | 24 dollars a month |
| FERA customers | 12 dollars a month |
| CARE customers | 6 dollars a month |
It started on SDG&E bills in October 2025, SCE bills in November 2025, and PG&E bills in March 2026. It pays for the basics of being connected: your meter, the transformer on your street, the lines and customer service.
To be fair, the price per kilowatt-hour was lowered to make room for it. In SDG&E’s case, a consumer group there (UCAN) estimates the price came down roughly 5 cents per kWh. So if you use a lot of power, you may come out a little ahead. If you use very little, you probably pay more than before.
If you have solar, or you’re thinking about it, this part matters: solar credits can’t erase this charge. So anyone who promises you a zero-dollar bill isn’t being straight with you.
Where your money actually goes
Since 2025, California’s electric utility companies have had to publish a breakdown of their rates. It’s eye-opening.
| PG&E average home rate (December 2025) | Share |
|---|---|
| Distribution (poles and wires) | about 42% |
| The energy itself | about 23% |
| Wildfire-related costs | about 14% |
| SDG&E average home rate (January 2026) | Share |
|---|---|
| Generation | about 36% |
| Distribution | about 20% |
| Transmission | about 16% |
| Wildfire | about 9% |
| Taxes | about 9% |
Source: each company’s published rate breakdown. Only the biggest pieces are shown.
And the Public Advocates Office counts wildfire costs at about 19% of everything PG&E collects from customers, and about 14% for both SCE and SDG&E (January 2026).
Here’s why that matters. The electricity is the smaller part of what you’re paying for. Most of your bill is the cost of the grid, and the cost of keeping it from starting fires. Those costs don’t go away when power gets cheaper. That’s a big reason rates keep climbing.
Your rate plan and the 4 to 9 PM window
The second thing to find on your bill is your rate plan name. It’s usually on the first or second page. It decides how much you pay depending on when you use power.
Most homes are on a time-of-use plan now. On the most common plan at all three companies, the most expensive time to use power is 4 to 9 PM.
| Electric utility company | Most common plan | Summer 2026 peak price, 4 to 9 PM | Baseline credit |
|---|---|---|---|
| PG&E | E-TOU-C | about 52 cents per kWh, every day | about 8 cents per kWh |
| SCE | TOU-D-4-9PM | about 58 cents per kWh on weekdays | about 10 cents per kWh |
| SDG&E | TOU-DR1 | about 68 cents per kWh, every day | about 11 cents per kWh |
The baseline credit is a discount on a set amount of power each day, called your baseline allowance. The amount depends on where you live, the season, and whether your home is all-electric. SDG&E applies its credit up to 130% of your allowance.
That’s why two neighbors using the same amount of power can get very different bills. It depends on their plan, their climate zone, and when they use the power.
The California Climate Credit moved
There’s one line that changed in 2026. If you don’t know about it, you might think your bill went down when it didn’t.
It’s the California Climate Credit. It comes from the state’s cap-and-trade program, and it shows up on your bill as a credit. For years it came in April and October. Starting in 2026, the state moved the electric credit to August and September, because that’s when bills are highest.
| Electric utility company | Each credit, August and September 2026 |
|---|---|
| PG&E | 36.18 dollars |
| SCE | 36.00 dollars |
| SDG&E | 49.36 dollars |
Source: CPUC Climate Credit fact sheet.
So if your August or September bill looked a little lower, check whether that credit was on it before you assume you used less power.
If you already have solar
Your bill works a little differently. On NEM 1.0 or 2.0, you get a statement every month, but most of your charges and credits add up over the year and come due all at once at your true-up. And if you have a community choice provider, it may do its own true-up on a different schedule.
That’s why so many solar homeowners get surprised by a big bill once a year. (Here’s why you can still owe money at your true-up.)
3 things to find on your bill before you talk to a solar company
- Your last 12 months of usage in kilowatt-hours, not dollars. Most bills have a bar chart that shows it month by month. If a solar company sizes your system off one month’s bill, or off your dollar amount, that’s a red flag. Your usage changes a lot between summer and winter, and a system sized off one month can leave you with two bills.
- Your rate plan name. It decides how much your solar is really worth, especially during that 4 to 9 PM window.
- Whether you have a community choice provider. It changes your generation rates and how your credits get trued up.
And if you’re on CARE, FERA or medical baseline, say so up front. It changes the math too.
With LADWP or another city-run electric company? Your bill is laid out differently, and the charges above are for PG&E, SCE and SDG&E. But the first two things on this list still apply to you, and I work with those homes too.
