PG&E Rates Are Way Up. Do You Qualify for a Discount?

There’s no getting around it: Your utility bill is going to be rough this year.

PG&E has raised their rates as of Jan. 1, 2024 — increasing the average Californian household’s gas and electricity bills by 13%, translating into a monthly increase of $34.50 — or $414 on the year.

State regulators approved the increases in November to help PG&E pay for burying power lines to prevent wildfires, although the utility said that these increases on your bill will also fund investments in clean energy.

And there could be more rate hikes in the future, which environmental and housing groups in California petitioned Gov. Gavin Newsom to repeal in a letter.

“We object to the un-democratic and opaque way in which the Utility Tax was enacted, passed in three days without any public hearings or discussion,” the letter reads. “The people of California deserve a voice in any major policy change with such wide-ranging consequences.”

Such a sharp rise in utility bills can be a breaking point for some households. However, depending on how much you earn, you may qualify for some assistance through two of PG&E’s programs called CARE and FERA, both of which offer a discount on your bills.

What is CARE?

CARE is PG&E’s California Alternate Rates for Energy program, and it allows for a monthly discount of 20% or more on your gas and electricity.

If you qualify for the discount, you can benefit from it for up to two years before you need to reapply again. If you are on a fixed income, however, the discount will last for four years.

The discount will apply in the next PG&E bill you receive — and will have “CARE DISCOUNT” written on your bill. Here’s what that bill may look like (PDF).

How do I know if I am qualified for CARE?

Your eligibility for PG&E’s CARE program is based on your household income, like your salary, Social Security and pensions, before taxes. This number will be the combined total of each household member’s income.

For one to two people, it is $39,440 or less. For a household of four, it is $60,000 or less. See the rest of the income table from PG&E. (The income guidelines change every year in June, and PG&E asks that you reapply whenever your income situation changes. You can call 1-866-743-2273 or email CAREandFERA@pge.com if you have specific questions about your bill.)

Proof of income is not required during the CARE application process. However, households may be chosen as random to provide proof. If you are chosen to prove your income, here is PG&E’s guide to navigating that process (PDF).

There are also a couple of other requirements for a household, including:

• The PG&E bill must be in your name.
• You must be living at the address where you are requesting the discount.
• Another person — besides a spouse — cannot be claiming you as a dependent on an income tax return.
• You cannot share the energy meter with another house.
• You must reach out to PG&E if you no longer qualify for the discount.
• Your monthly electricity usage cannot exceed six times the “Tier 1 allowance.” Page one of this PDF explains how you can calculate your baseline allowance.

You may qualify for the CARE program if you or someone living with is part of public assistance programs like:

• Low Income Home Energy Assistance Program (LIHEAP)
• Women, Infants and Children (WIC)
• CalFresh/SNAP (Food Stamps)
• CalWORKs (TANF) or Tribal TANF
• Head Start Income Eligible (Tribal Only)
• Supplemental Security Income (SSI)
• Medi-Cal for Families (Healthy Families A & B)
• National School Lunch Program (NSLP)
• Bureau of Indian Affairs General Assistance
• Medicaid/Medi-Cal (under age 65)
• Medicaid/Medi-Cal (age 65 and over)

For a quick way to determine if you qualify, fill out this form when signed into your PG&E account.

How do I apply for PG&E’s CARE program?

You can apply for a new CARE application, renew a CARE application or cancel your enrollment online.

You can also complete the forms in the following languages:

• Español, Solicite ahora Programas CARE/FERA — Inscripción/Re-inscripción
• 中文, 申請 CARE/FERA計劃-申請或從新申請 -第 1 步
• Việt, Các ứng dụng trực tuyến không khả dụng

What if I am a sub-metered tenant?

A sub-metered tenant means your landlord bills you for electricity and gas, not PG&E. It also means you are not a PG&E customer.

Luckily, this doesn’t stop you from applying to the CARE program here (PDF) — you will just have to complete this different application.

Your landlord is responsible for ensuring the CARE discount appears on your bill. Learn more about your rights as a sub-metered tenant on PG&E’s website.

I don’t qualify for CARE. Is there an alternative?

If you submit a CARE application, you are also automatically screened to see if you qualify for the Family Electric Rate Assistance (FERA) program. The two share an application, with the difference being that FERA has slightly higher income requirements. However, you cannot enroll in both CARE and FERA.

FERA offers an 18% discount on electric rates but not gas. To qualify, you have three or more people in a household and meet income requirements. For a household of three, that is $49,721–$62,150. For a household of four, that is $60,001–$75,000.

The FERA discount also applies for two years.

Are there other PG&E programs I should know about?

For one-time assistance with your utility bill, check out:

• PG&E’s Energy Savings Assistance program, in which renters improve appliances or their home with environmental upgrades if their income qualifies them for the program. For one person, the threshold is $36,450 or less. For a household of four, it is $75,000 or less.
• PG&E’s Relief for Energy Assistance through Community Help, in which low-income families can receive up to $1,000 on a bill of no more than $2,000.
• Low-Income Home Energy Assistance Program, which is one-time federally funded assistance for low-income families.

Read: How to Find Free or Lower-Cost Wi-Fi in the Bay Area

For long-term assistance with your utility bills, there are:

• PG&E’s Medical Baseline Program is for residential customers who use medical equipment that depends on power, such as an apnea monitor and a dialysis machine. It could also help ensure PG&E does not shut off your power during severe weather threats. Apply for the Medical Baseline Program online. There are also different ways for vulnerable customers to contact PG&E for assistance in these cases.
• PG&E’s Arrearage Management Plan is a debt forgiveness plan of up to $8,000 if enrolled in CARE or FERA. Check other requirements for enrolling in this plan.