What is a Care Program? Understanding Energy Assistance for Low-Income Households

Navigating household expenses can be challenging, and utility bills, especially for electricity and natural gas, can significantly strain a tight budget. For eligible, low-income households, assistance programs like the California Alternate Rates for Energy (CARE) program can provide crucial relief. But What Is A Care Program exactly, and how can it help?

Care programs, like California’s CARE program, are designed to ease the energy cost burden for qualifying low-income customers. These programs offer discounts on monthly utility bills, making energy services more affordable and accessible. The California CARE program, specifically, provides substantial discounts to help households manage their energy expenses.

Decoding the California CARE Program

The California Alternate Rates for Energy (CARE) program is a state-initiated program aimed at providing financial assistance to low-income households in California to help manage their electricity and natural gas bills. Administered by utility companies under the regulation of the California Public Utilities Commission (CPUC), CARE offers a significant reduction in energy costs for those who qualify.

Eligible customers enrolled in the CARE program benefit from a 30-35 percent discount on their electric bill and a 20 percent discount on their natural gas bill. These discounts can make a substantial difference in a household’s monthly budget, freeing up funds for other essential needs.

Who Qualifies for a Care Program? – Eligibility for CARE

Eligibility for the CARE program hinges primarily on household income. However, enrollment in certain public assistance programs can also automatically qualify a household. Let’s break down the eligibility criteria:

Income-Based Eligibility

The most common pathway to CARE program eligibility is through meeting specific household income limits. These limits are updated annually to reflect changes in the cost of living and are effective through May 31, 2025, as indicated below:

CARE Income Guidelines*
Household Size
1-2
3
4
5
6
7
8
Each Additional Person
* Effective June 1, 2024 to May 31, 2025

To determine if you qualify based on income, compare your total household income to the limits corresponding to your household size. If your income is at or below the listed limit, you are likely eligible for the CARE program.

Eligibility Through Public Assistance Programs

Even if your income slightly exceeds the direct income limits, you may still qualify for CARE if you are enrolled in certain public assistance programs. These programs demonstrate a household’s need for financial support, and automatic CARE eligibility is extended to participants of the following programs:

  • Medicaid/Medi-Cal
  • Women, Infants and Children Program (WIC)
  • Healthy Families A & B
  • National School Lunch’s Free Lunch Program (NSL)
  • Food Stamps/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

Enrollment in any of these programs streamlines the CARE application process, as it serves as verification of eligibility.

Benefits of Participating in a Care Program

The advantages of enrolling in a care program like California CARE are clear and impactful. The primary benefit is significant cost savings on your monthly energy bills. With discounts ranging from 30-35% on electricity and 20% on natural gas, households can experience a noticeable reduction in their utility expenses.

These savings can translate to:

  • Reduced financial stress: Lower energy bills free up funds for other essential needs like food, housing, healthcare, and transportation.
  • Increased household stability: Consistent energy service becomes more secure and predictable, reducing the risk of service disruptions due to financial constraints.
  • Greater affordability: Energy, a basic necessity, becomes more affordable for low-income households, promoting a higher quality of life.

How to Apply for the CARE Program

Applying for the CARE program is a straightforward process. The first step is to contact your utility company directly. Each utility company in California manages CARE applications for its service area.

You can reach out to your utility company through the phone numbers and websites listed below to request an application form and gather more detailed information about the CARE program. Many utility websites also offer online application options for added convenience.

Phone Numbers and Websites for Energy Assistance Programs
Utility
PG&E
Edison
SDG&E
SoCalGas
Alpine Nat’l Gas
Bear Valley Elect
PacifiCorp
Liberty Utilities
Southwest Gas
West Coast Gas

In addition to contacting your utility, application forms may also be available through various community agencies and organizations in your area. These agencies often assist low-income residents with accessing various support services, including energy assistance programs.

Exploring Further Assistance: The Family Electric Rate Assistance (FERA) Program

California also offers a related program called the Family Electric Rate Assistance (FERA) program. FERA is designed for households whose income slightly exceeds the CARE program limits but still struggle with energy costs.

FERA provides an 18% discount on electricity bills for eligible customers of specific utility companies, including Southern California Edison, San Diego Gas and Electric Company, and Pacific Gas and Electric Company.

The income guidelines for FERA are higher than CARE, catering to families with slightly higher income levels who still need assistance. The income limits effective through May 31, 2025, are as follows:

Household 200% of Federal Poverty Guidelines (CARE/ESAP) +1 250% of Federal Poverty Guidelines (FERA)
3 $51,641 $64,550
4 $62,401 $78,000
5 $73,161 $91,450
6 $83,921 $104,900
7 $94,681 $118,350
8 $105,441 $131,800
Each Additional Person $10,760 $13,450

If your household income is slightly above the CARE limits but below the FERA limits, exploring the FERA program could be beneficial. Contact your electric utility company to inquire about FERA eligibility and application procedures.

The Low-Income Oversight Board (LIOB)

To ensure that programs like CARE and FERA effectively serve low-income communities, California has established the Low-Income Oversight Board (LIOB). The LIOB advises the CPUC on the energy low-income assistance programs offered by utilities under its jurisdiction. This board plays a crucial role in advocating for and improving energy assistance programs to best meet the needs of California’s low-income residents.

Conclusion: Care Programs – A Vital Support System

Care programs, exemplified by the California CARE program, are essential resources for low-income households seeking to manage their energy costs. By providing significant discounts on electricity and natural gas bills, these programs enhance affordability, reduce financial strain, and contribute to household stability.

If you believe you may be eligible for the CARE program or FERA in California, reaching out to your utility company is the first step towards accessing valuable energy assistance. Take advantage of these programs to ensure affordable and reliable energy services for your household.

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