What is the Cost for CARE Program? Understanding California’s Energy Savings Program

The California Alternate Rates for Energy (CARE) program is not about cost, but about savings. It’s a state initiative designed to help low-income households manage their energy expenses by providing significant discounts on their monthly utility bills. If you’re a Californian struggling to afford electricity and natural gas, understanding the CARE program and its potential benefits is crucial.

Decoding the CARE Program Discounts

Enrolling in the CARE program can lead to substantial savings on your energy bills. Customers who qualify for CARE receive a 30-35 percent discount on their electric bill and a 20 percent discount on their natural gas bill. These discounts are designed to make energy more affordable for eligible households, ensuring access to essential utilities without causing undue financial strain. It’s important to note that the discount percentage for electricity can vary slightly depending on your utility provider, with corporations having 100,000 or more customer accounts offering the higher end of the discount range.

To find out the exact discount offered by your specific utility provider and to begin the application process, reaching out to your utility company directly is the most effective step. They can provide detailed information tailored to your location and energy needs.

Who Bears the Cost of the CARE Program?

The CARE program is funded through a small rate surcharge that is paid by utility customers who are not enrolled in the program. This means that the cost of providing these discounts is shared across a broader base of utility users, ensuring the sustainability of the program and its ability to support vulnerable households. This system of funding ensures that the CARE program remains a viable and consistent source of assistance for those who need it most.

Determining Your Eligibility for CARE: Income Guidelines and Public Assistance Programs

Eligibility for the CARE program is primarily based on your household income. If your total household income falls at or below the specified income limits, you are likely to qualify for the program. These income limits are updated annually to reflect changes in the cost of living and ensure the program remains accessible to those who need it most.

Current CARE Income Guidelines (Effective through May 31, 2025):

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

Image alt text: CARE Program Income Eligibility Guidelines Table for California residents, detailing income limits based on household size, effective June 1, 2024 to May 31, 2025.

Beyond income limits, you can also qualify for CARE if you are currently enrolled in certain public assistance programs. This automatic eligibility pathway simplifies the application process for those already receiving support through other safety net programs. Qualifying public assistance programs include:

  • 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 can streamline your CARE application, making it easier to access energy bill discounts.

How to Apply for CARE: Connecting with Your Utility Provider

The most direct way to apply for the CARE program is to contact your utility company. Each utility provider in California manages its own CARE application process, and they are equipped to provide you with the necessary forms and information. You can reach out to them via phone or through their websites, where many offer online application options and detailed program information.

Contact Information for Major California Utilities:

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

Image alt text: Table listing California utility companies with contact phone numbers and website links for accessing CARE program information and applications.

In addition to contacting your utility directly, application forms may also be available through various community agencies and organizations that assist low-income residents. These agencies can provide support and guidance throughout the application process.

Exploring Further Assistance: The FERA Program

For families whose income slightly exceeds the CARE program limits, there is another option for energy bill assistance: the Family Electric Rate Assistance (FERA) program. FERA provides an 18% discount on electricity bills for eligible customers of Southern California Edison, San Diego Gas and Electric Company, and Pacific Gas and Electric Company.

FERA Income Guidelines (Effective through May 31, 2025):

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

Image alt text: FERA Program Income Guidelines Table, comparing income limits with CARE program eligibility, for California residents seeking additional energy bill assistance.

If your household income is slightly above the CARE limits, investigating the FERA program could be beneficial. Contact your electric utility to determine if you qualify for FERA and to learn more about the application process.

Conclusion: Accessing Affordable Energy through CARE

The CARE program is a vital resource for low-income Californians, offering significant discounts on energy bills and ensuring access to essential services. It’s not about “cost” in terms of expense to the recipient, but rather about the value of the savings and the reduced financial burden for eligible households. By understanding the eligibility criteria, application process, and available resources, you can take advantage of this program and manage your energy costs more effectively. Reach out to your utility provider today to explore your eligibility and begin saving on your energy bills.

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