How Does the California CARE Program Work? A Guide to Lowering Your Energy Bills

Are you finding it difficult to manage your energy bills in California? You might be relieved to know about the California Alternate Rates for Energy (CARE) program. This initiative is designed to provide significant discounts on your electricity and natural gas bills, making energy more affordable for low-income households. Let’s delve into how the CARE program works and how you can benefit from it.

Understanding the CARE Program in California

The California Alternate Rates for Energy (CARE) program is a state-mandated program created by the California Public Utilities Commission (CPUC). Its primary goal is to assist income-qualified households in managing their energy expenses. Through CARE, eligible customers receive a substantial discount on their monthly utility bills, ensuring access to essential energy services without causing financial strain.

So, how does the CARE program work to lower your energy costs? It essentially provides a direct discount on your bills. Customers enrolled in CARE receive a 30-35 percent discount on their electric bill and a 20 percent discount on their natural gas bill. These discounts are funded through a small surcharge paid by other utility customers, making it a community-supported program.

How Does the CARE Program Work to Provide Discounts?

The CARE program operates based on income eligibility. The CPUC sets specific income limits, which are updated annually to reflect changes in the cost of living. If your household income falls at or below these limits, you are likely to qualify for CARE.

Furthermore, enrollment in certain public assistance programs automatically qualifies you for CARE. This streamlined approach ensures that those already receiving aid can easily access energy bill assistance. Programs that grant automatic eligibility include:

Medicaid/Medi-Cal
Women, Infants and Children Program (WIC)
Healthy Families A & B
National School Lunch’s Free Lunch Program (NSL)
Food Stamps/Supplemental Nutrition Assistance Program (SNAP)
Low Income Home Energy Assistance Program (LIHEAP)
Head Start Income Eligible (Tribal Only)
Supplemental Security Income (SSI)
Bureau of Indian Affairs General Assistance
Temporary Assistance for Needy Families (TANF) or Tribal TANF

If you participate in any of these programs, you are pre-qualified for CARE, simplifying the application process significantly.

Who is Eligible for the CARE Program? Income Guidelines

To determine if you are eligible for the CARE program based on income, refer to the guidelines below. These income limits are effective through May 31, 2025, and are subject to annual adjustments.

| CARE Income Guidelines* |
| :————————————————- | :——————————— |
| Household Size | Income Eligibility Upper Limit |
| 1-2 | $40,880 |
| 3 | $51,640 |
| 4 | $62,400 |
| 5 | $73,160 |
| 6 | $83,920 |
| 7 | $94,680 |
| 8 | $105,440 |
| Each Additional Person | $10,760 |
| * Effective June 1, 2024 to May 31, 2025 | |

If your household size and income align with these limits, you are encouraged to apply for the CARE program. Remember, these figures are updated, so it’s always best to check the most current guidelines on your utility provider’s website.

How to Apply for the CARE Program

Applying for the CARE program is a straightforward process. The primary method is to contact your utility company directly. You can request an application form and gather more detailed information from them. Most utility companies also provide online applications through their websites, making it even more convenient.

Here is a table listing major California utility companies along with their contact information and direct links to their CARE program pages:

In addition to contacting your utility directly, application forms are also often available through various community agencies and organizations that assist low-income individuals and families.

What is the Family Electric Rate Assistance (FERA) Program?

For families whose income slightly exceeds the CARE program limits, there’s another option: the Family Electric Rate Assistance (FERA) program. FERA provides an 18% discount on electricity bills. It’s designed as a stepping stone for those who might not qualify for CARE but still need help managing energy costs.

FERA is available to customers of Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas and Electric Company. The income limits for FERA are higher than CARE, making it accessible to a broader range of households. Here are the income guidelines for FERA, effective through May 31, 2025:

Household	250% of Federal Poverty Guidelines (FERA)
3	$64,550
4	$78,000
5	$91,450
6	$104,900
7	$118,350
8	$131,800
Each Additional Person	$13,450

If your income falls within these FERA guidelines, contact your electric utility to inquire about enrollment.

Conclusion: Take Advantage of the CARE Program

The California CARE program is a valuable resource for low-income households seeking to reduce their energy expenses. By providing substantial discounts on electricity and natural gas bills, CARE ensures that essential energy services are more accessible and affordable. Understanding how the CARE program works and knowing the eligibility requirements are the first steps to benefiting from this program.

If you believe you qualify for CARE or FERA, don’t hesitate to reach out to your utility company. They can provide you with the application forms, detailed information, and guide you through the enrollment process. Lowering your energy bills and managing your household budget can be significantly easier with the help of these California assistance programs.

For further details and to start your application, please contact your utility company today.