Rate Alert

SCE Rate Increases 2026-2028:The Complete CPUC Breakdown

Every rate increase authorized by the California Public Utilities Commission through 2028 - what they are, why they are happening, and exactly what they mean for your monthly SCE bill.

March 10, 202610 min read
Adrian Marin
Adrian Marin|Independent Solar Advisor, Temecula CA

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If your Southern California Edison bill feels like it goes up every year, it is because it does. SCE residential rates have increased approximately 83% approximately 83% from January 2015 to April 2025, per CPUC Public Advocates Office data, and its current average residential rate is 34.5 cents per kWh (SCE's advisory effective October 1, 2026). The national average sits at roughly 17 cents - meaning SCE customers pay well above what most Americans pay for electricity.

But what makes this more than just a complaint is the forward-looking picture. The California Public Utilities Commission (CPUC) has approved additional SCE rate cases extending through 2028 as part of the current General Rate Case cycle - though the exact dollar or percentage amount for 2027 and 2028 is not yet public. See what that means for your bill through 2034.

This article explains each mechanism in detail so you understand not just that rates are going up, but why, how much, and what structural forces make it virtually certain they will continue. For the latest on the current SCE rate increase 2026, and for projections through 2028, see our main rate analysis page.

1. How CPUC Rate Increases Work

The California Public Utilities Commission is the state agency that regulates investor-owned utilities like SCE. Unlike competitive markets where prices are set by supply and demand, SCE's rates are set through a regulatory process where the utility requests revenue and the CPUC authorizes how much SCE can collect from customers.

This process happens through several parallel mechanisms:

General Rate Case (GRC)

The main proceeding where SCE requests its base revenue requirement for a multi-year cycle (typically 4 years). This covers operating costs, infrastructure investment, and the guaranteed return on capital that goes to SCE's shareholders. The current GRC cycle runs through 2028.

Track 1 and Track 2 Adjustments

Within each GRC cycle, the CPUC splits cost recovery into "tracks." Track 1 typically addresses the first phase of authorized spending, while Track 2 addresses additional or deferred costs. Each track results in a separate rate adjustment.

Special Cost Recovery Proceedings

Separate from the GRC, SCE can file to recover specific costs - wildfire mitigation, wildfire fund contributions, grid hardening, vegetation management, and other extraordinary expenses. These layer on top of GRC-authorized increases.

Escalation Mechanisms

Some cost categories include built-in annual escalators that increase rates automatically without requiring a new CPUC proceeding. Once authorized, these increases happen on schedule.

2. General Rate Cases Explained

SCE's current General Rate Case (GRC) covers the period from approximately 2025 through 2028. During this proceeding, SCE requested billions in revenue to cover:

  • Grid hardening and undergrounding power lines in high-fire-risk areas
  • Infrastructure upgrades for aging transmission and distribution systems
  • Wildfire prevention programs including vegetation management
  • Technology upgrades including grid modernization and smart meters
  • Operating costs including labor, materials, and administrative expenses
  • The guaranteed rate of return on capital investment (shareholder profit)

An important structural detail: SCE's parent company, Edison International, is publicly traded and pays dividends to shareholders. The CPUC's cost-of-service model guarantees SCE a rate of return on capital investment - typically around 10%. This means every dollar SCE invests in infrastructure generates roughly 10 cents in annual profit for shareholders. The incentive structure encourages capital spending, which in turn drives rate increases. There is no market force pushing SCE to find cheaper solutions.

3. Track 1: The 2026 Increase

2026
Confirmed 2026 Rate
SCE's advisory effective October 1, 2026 was a slight increase

Confirmed residential rate: 34.5 cents per kWh (up from 34.4 after the June 1, 2026 advisory, which was down from 34.5). Rates do not move only in one direction, even though the multi-year trend has been upward.

SCE's current General Rate Case (GRC) cycle authorizes recovery of infrastructure investment, wildfire mitigation spending, and updated base revenue requirements through 2028, in phases the CPUC calls Track 1 and Track 2. The exact dollar or percentage impact of each track on a given year's rate is not published in advance - check SCE's own rate advisory page for the current confirmed number rather than a forecast.

For the average Temecula homeowner using 1,000 kWh per month at today's confirmed 34.5 cent rate, that is roughly $345 per month. Track 1, Track 2, and any wildfire surcharge proceedings can each add to that bill - the CPUC's rate case filings are public if you want the underlying dollar figures for a specific proceeding.

A GRC-authorized rate change does not require a customer vote and takes effect on the schedule SCE files with the CPUC - but "authorized" describes the case process, not necessarily the specific cents-per-kWh figure attached to it in this article's earlier drafts, which have not been independently confirmed against SCE's own advisory archive.

4. Track 2: The 2027 Increase

2027
Track 2 + Wildfire Fund Escalation
Not yet published by CPUC

Illustrative projection at SCE's ~7%/yr historical trend from today's 34.5 cent rate: approximately 37 cents per kWh. This is not a confirmed CPUC figure.

Track 2 layers additional authorized costs on top of the Track 1 increase. This phase typically includes deferred capital projects, updated cost estimates for programs that came in above initial projections, and any incremental spending the CPUC authorized but did not include in Track 1.

Simultaneously, California's Wildfire Fund contributions escalate. The Wildfire Fund was created by AB 1054 to provide a shared liability pool for utility-caused wildfires. SCE's contributions to this fund increase over time and are passed through to ratepayers as a line item on your bill.

Combined, the Track 2 adjustment and wildfire fund escalation are expected to keep pushing average residential rates up, though the CPUC has not yet published a specific 2027 dollar figure. Using SCE's ~7%/yr historical trend from today's confirmed 34.5 cent rate as an illustrative estimate, a 1,000 kWh/month household could see monthly bills approach $370 - check SCE's own rate advisory page for the confirmed number as it is published.

5. Wildfire Costs and Surcharges

Wildfire-related costs deserve their own section because they represent one of the largest and fastest-growing components of SCE rate increases. These costs come from multiple sources:

Wildfire Mitigation Plan (WMP)

SCE files an annual Wildfire Mitigation Plan with the CPUC detailing how it will reduce fire risk. The plan includes covered conductor installation, undergrounding, sectionalizing devices, weather stations, and vegetation management. Costs run into the billions over the GRC cycle.

Wildfire Fund (AB 1054)

SCE contributes to a shared wildfire liability fund. Annual contributions escalate and are recovered through ratepayer surcharges. The fund covers damages from utility-caused wildfires above the utility's self-insurance layer.

Wildfire Insurance

SCE purchases commercial wildfire insurance, and premiums have skyrocketed as fire risk has increased. These insurance costs are passed through to ratepayers.

Past Wildfire Liability

SCE is still recovering costs related to the 2017-2018 Thomas Fire and Woolsey Fire events. Edison International was fined $550 million by the CPUC and faced billions in total liability. Recovery of these costs is spread across ratepayers over time.

The critical point: wildfire costs are structural and increasing. As California's fire seasons lengthen and intensify, the costs of prevention, insurance, and liability recovery all grow. There is no mechanism to reduce these costs - they can only go up. And every dollar is passed through to your bill.

6. 2028 and Beyond

2028
End of Current GRC Cycle
Not yet published by CPUC

Illustrative projection at SCE's ~7%/yr historical trend from today's 34.5 cent rate: approximately 39 cents per kWh. This is not a confirmed CPUC figure.

The current GRC cycle concludes around 2028, at which point SCE will file a new General Rate Case for the next multi-year period. Historical pattern: every new GRC has resulted in higher authorized base rates than the previous one. There is no precedent for a GRC that reduced rates.

By 2028, if rates follow SCE's historical ~7%/yr trend, the average SCE residential rate could reach approximately 39 cents per kWh. That would put a 1,000 kWh/month household at roughly $390 per month. This is a trend projection, not a CPUC-published figure for 2028 - check SCE's own rate advisory page for the confirmed number as it is published.

Beyond 2028, the structural forces driving rate increases - wildfire costs, infrastructure investment, and the utility's regulated rate of return on capital investment - are unlikely to disappear. That does not make any specific future cents-per-kWh figure a fact; treat every year past the most recent SCE advisory as a projection.

7. The Full Rate Timeline (2020-2028)

Here is the trend picture. The 2020-2024 figures are an illustrative reconstruction, not individually confirmed against SCE's own advisory archive. The 2026 figure is confirmed against SCE's own rate advisory. 2027 and 2028 are trend projections at SCE's historical ~7%/yr rate of increase - CPUC has not yet published the specific dollar or percentage amount for those years.

Year
Rate/kWh
Change
Status
2020
~22.1c
est.
Estimate
2021
~24.8c
est.
Estimate
2022
~26.4c
est.
Estimate
2023
~28.9c
est.
Estimate
2024
~31.2c
est.
Estimate
2026
34.5c
+0.1c
Confirmed
2027
~37c
trend
Projection
2028
~39c
trend
Projection

Two things stand out in this timeline. First, the rate has risen substantially over the decade - CPUC's own data puts it at roughly 83% from January 2015 to April 2025. Second, the 2027 and 2028 figures above are this article's own trend projection, not a CPUC-published number - check SCE's own rate advisory page for the confirmed rate as each year's advisory is published.

The simple math still tells a real story even with the projection caveat: SCE rates have risen substantially since 2020, and the confirmed current rate (34.5 cents) is already well above the national average, which sits at roughly 17 cents per kWh.

8. What You Can Do About It

You cannot vote on SCE's rate increases. You cannot switch to a different utility company. And energy conservation, while worthwhile, only reduces the volume of electricity you buy - not the price per unit. The per-kWh rate still goes up every year regardless of how little you use.

The most effective option for most SCE homeowners is to generate your own electricity through solar. Homeowners who have already switched report being able to cut a $200+ bill to near zero. Specifically, a solar Power Purchase Agreement (PPA) offers the most direct hedge against rate increases because:

  • Your rate escalator is capped at 3.5% per year - less than half of SCE's historical average
  • Zero upfront cost - no cash out of pocket, no loan payments
  • Savings start from month one - your PPA rate is lower than your current SCE rate
  • 25-year production guarantee - backed in writing by your PPA provider

For a detailed comparison of PPAs versus buying solar outright, read our PPA vs buying panels guide. To see what the savings look like specifically for Temecula, check our Temecula solar savings breakdown.

One important timing note: the federal commercial tax credit (Section 48E) that makes today's PPA rates possible requires new projects to be placed in service by December 31, 2027. Once an installer can't hit that date on new projects, PPA starting rates will likely be higher because the installer loses the tax credit benefit. This is a real federal deadline, not a sales tactic. If you are considering solar, the math favors acting before the deadline rather than after. Use our savings calculator to see your personalized numbers.

To calculate how much you could save given your current SCE bill and these rate projections, visit the Temecula solar savings calculator on the Temecula Solar Savings homepage.

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Real Numbers · Temecula Homeowner

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