Electricity Rates EXPLODE By Shocking 83%

California residents now pay 39% more for electricity than they did six years ago—the steepest increase in the nation—and the pain isn’t over yet.

Story Snapshot

Southern California Edison rates have surged 83% over ten years, with 25% of that increase compressed into just three years
Over 860,000 Edison customers are behind on payments, owing an average of $957 each as bills climb beyond affordability
Residents face an additional 12.9% rate increase in 2026, adding up to $372 annually on top of October 2025’s $200 hike
The California Public Utilities Commission approved increases through 2028, prioritizing utility spending over consumer relief
Wildfire prevention, aging infrastructure, and renewable energy mandates drive costs higher while low-income households bear disproportionate burdens

When Good Intentions Become Unaffordable Policy

California’s electricity crisis stems from a regulatory structure that prioritizes infrastructure spending and renewable energy mandates over consumer affordability. The California Public Utilities Commission operates through “general rate cases” where utilities like Southern California Edison propose four-year spending plans. The CPUC approved Edison’s request to spend $9.8 billion annually on grid costs—13.7% more than the previous year. Since 2014, Edison’s rates have climbed 80%, more than twice the inflation rate during that period. Governor Gavin Newsom pushed legislation in 2022 creating a new monthly charge structure, ostensibly to encourage electric vehicle adoption, but the fixed fees hit lower-usage customers hardest.

The October Shock and What Comes Next

Southern California Edison implemented a 10% rate increase on October 1, 2025, adding approximately $17 to monthly bills. The average residential rate jumped to 35.3 cents per kilowatt-hour from 31.2 cents. A slight adjustment in January 2026 brought the rate down to 33.2 cents after applying the California Climate Credit, but this provided minimal relief. The utility announced an additional 12.9% increase for 2026, translating to $27-$31 more per month or $324-$372 annually for typical households. Under the approved plan, customers face inflation-adjusted increases every year through 2028, with no ceiling in sight.

The Justification That Rings Hollow

Southern California Edison defends these increases by citing growing electricity demand, aging infrastructure, wildfire prevention requirements, and grid reliability threats. The utility claims demand is “growing faster than it has in decades” and that “threats to grid safety and reliability are becoming more frequent and more costly.” Yet the CPUC’s Public Advocates Office documented that 25% of the 83% ten-year rate increase occurred in just three years between January 2022 and April 2025—far outpacing any reasonable infrastructure timeline. The explanation fails to address why California’s increases dwarf those in other states facing similar challenges. Scores of angry customers have written to the CPUC asking regulators to deny rate increases, but their voices carry little weight against utility lobbying power.

Who Pays and Who Profits

More than 860,000 Edison customers—19% of the total customer base—are behind on their bills, with average unpaid balances of $957. The new rate structure shifts from per-kilowatt-hour pricing to higher fixed monthly fees, creating perverse outcomes. Low-income households that conserve electricity still pay substantial fixed charges, while high-usage households consuming over 1,000 kilowatt-hours monthly may actually see bill reductions. Renters lack the ability to install solar panels or make efficiency improvements to offset increases. Meanwhile, approved rate increases support utility investor profitability, with Edison seeking additional 2.1% increases for cost of capital adjustments—ensuring shareholders prosper while customers struggle.

The Electrification Contradiction

California’s policy goals demand widespread adoption of electric vehicles and electric heat pumps to meet climate targets. Yet skyrocketing electricity rates create a financial disincentive for the very behavior the state seeks to encourage. A household switching from natural gas heating to an electric heat pump faces dramatically higher operating costs at 33.2 cents per kilowatt-hour—among the highest rates in the nation. The same applies to electric vehicle charging at home. The contradiction reveals a fundamental disconnect between Sacramento’s environmental aspirations and economic reality. Wealthier households can absorb higher costs or install rooftop solar with battery storage, while working-class families face impossible choices between heating their homes, charging vehicles, or paying other bills.

California’s electricity crisis exposes the failure of regulatory capture, where utilities exercise outsized influence over the commission supposedly overseeing them. The CPUC reduced Edison’s initial request from $10.5 billion to $9.8 billion annually and called it consumer protection, yet approved increases that vastly exceed inflation and wage growth. The cumulative burden through 2028 will push more households into energy poverty while utilities guarantee investor returns. Common sense demands regulators prioritize consumer affordability over utility profit margins, but California’s political class remains committed to policies that make electricity a luxury good rather than an essential service.