SCE Rate Increases: What Southern
California Homeowners Need to
Know in 2026
Southern California Edison residential rates have jumped 83% since 2014 and now sit at roughly 34.5c/kWh — double the national average. The CPUC has already authorized more increases through 2028. Here is what is driving the hikes and what you can actually do about it.
SCE Rate Increase Timeline: 2020 - 2028
SCE residential rates have accelerated sharply since 2020. Years marked "est." reflect CPUC-authorized increases that have not yet taken full effect.
Pandemic year — usage surged, rates still climbed
Wildfire cost recovery begins hitting bills
Largest single-year jump in a decade
Infrastructure and wildfire surcharges compound
Double the national average of ~17c/kWh
CPUC-authorized General Rate Case increase
CPUC Track 1 authorized increase takes effect
Track 2 increase + wildfire fund escalation
End of current GRC cycle — new case expected
CPUC-Authorized Increases: 2026, 2027, 2028
These are not speculation. The California Public Utilities Commission has already approved rate increases for SCE extending through the end of the current General Rate Case cycle.
The CPUC Track 1 decision authorizes SCE to recover additional infrastructure and wildfire mitigation costs. Estimated residential impact: 7-9% increase, pushing average rates toward 40c/kWh.
Track 2 adjustments layer on top of the 2026 increase. Additional wildfire fund contributions escalate. Estimated residential impact: 7-8% increase, with rates potentially exceeding 43c/kWh.
The current General Rate Case cycle concludes, but a new filing will begin. Historical pattern: each new GRC has approved higher base rates than the last. Rates could reach 46c/kWh or higher.
Why SCE Rates Keep Going Up
Three structural forces are driving sustained rate increases for SCE customers, and none of them are going away.
Wildfire Liability and Recovery Costs
SCE's parent company Edison International was hit with a $550 million CPUC finefor its role in the devastating 2017-2018 wildfires. But fines are just the beginning. Wildfire prevention, vegetation management, insurance, and the state's Wildfire Fund all get passed through to ratepayers as surcharges on your monthly bill. These costs are increasing every year as fire seasons worsen.
Massive Infrastructure Investment
SCE is spending billions on grid hardening, undergrounding power lines, and upgrading aging infrastructure. While necessary for safety, the CPUC allows SCE to earn a guaranteed rate of return on these capital investments — meaning every dollar SCE spends on infrastructure generates profit for its shareholders while increasing your rates.
The Regulatory Model Itself
California's investor-owned utility model creates a structural incentive to spend more, not less. SCE's parent Edison International pays hundreds of millions in quarterly dividends to shareholders. Under the CPUC cost-of-service model, the more SCE invests in capital projects, the larger its guaranteed return — and those returns are funded by your electric bill. There is no market force pushing rates down.
What Homeowners Can Actually Do About It
You cannot vote out your utility company. But you can reduce how much power you buy from them.
SCE 2034 estimate based on 7% compound annual growth from current 34.5c/kWh rate. PPA estimate based on 3.5% escalator from a starting rate below current SCE.
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Frequently Asked Questions
How much have SCE rates increased over the last 10 years?
SCE residential electricity rates have increased approximately 83% since 2014. The average residential rate went from roughly 18.9c/kWh in 2014 to approximately 34.5c/kWh in 2024. That is more than double the national average of about 17c/kWh.
Will SCE rates keep going up in 2026, 2027, and 2028?
Yes. The California Public Utilities Commission (CPUC) has already authorized SCE rate increases through 2028 as part of the current General Rate Case cycle. Estimates project rates reaching 40c/kWh or higher by 2026, with continued 7-9% annual increases through 2028.
Why are SCE rates so much higher than the rest of the country?
Three main factors drive SCE rates above the national average: wildfire liability and prevention costs (including the $550M CPUC fine from the 2017-2018 wildfires), massive infrastructure investment in grid hardening and undergrounding, and California's regulatory model that allows utilities to pass costs through to ratepayers while maintaining shareholder returns.
What can SCE customers do to lower their electricity costs?
The most effective option for SCE homeowners is a solar Power Purchase Agreement (PPA). A PPA locks in a rate lower than SCE's current rate with a predictable 3.5% annual escalator — compared to SCE's uncapped historical average of roughly 7% per year. There is zero upfront cost, zero maintenance responsibility, and you start saving from month one.