The California Alternate Rates for Energy (CARE) program stands as a crucial support system for low-income households in California, offering significant discounts on their energy bills. Enrollees in the CARE program benefit from a 30-35 percent reduction on their electric bills and a 20 percent discount on natural gas costs, making essential utilities more affordable. Understanding how this vital program is financed is key to appreciating its impact and sustainability. So, Where Does The Care Program Get Funding From?
Understanding the CARE Program’s Benefits
Before diving into the funding mechanism, it’s important to reiterate the substantial benefits CARE provides. Eligible customers, who meet specific income requirements or participate in qualifying public assistance programs, gain access to considerable savings. These discounts help alleviate the financial burden of energy expenses, ensuring that vulnerable households can maintain essential services without facing undue hardship. The program is designed to support those who need it most, making energy more accessible and affordable across California.
Where Does the CARE Program Get Funding From? The Rate Surcharge Explained
The CARE program’s funding model is designed to be both sustainable and equitable. It is funded through a rate surcharge paid by all other utility customers in California. This means that a small additional charge is included in the energy bills of households and businesses that are not enrolled in CARE. This surcharge is specifically designated to finance the discounts provided to CARE participants.
This funding mechanism ensures that the CARE program is not reliant on general taxpayer funds or government appropriations, but rather is supported by the broader community of utility customers. It’s a collective effort where those who are able to contribute do so to assist their neighbors in need.
Who Funds CARE and Who Benefits? A Community Support System
Essentially, all utility customers who are not enrolled in the CARE program contribute to its funding. This model reflects a community-based approach to supporting low-income households. While everyone pays a small surcharge, the benefits are directly targeted to those who meet the eligibility criteria, ensuring that assistance reaches those who need it most.
The beneficiaries of CARE are low-income households in California who meet the program’s guidelines. Eligibility is determined by household income and participation in certain public assistance programs. The income limits are updated annually to reflect changes in the cost of living and ensure the program remains accessible to those it is intended to serve. These income guidelines are effective through May 31, 2025, and are structured as follows:
| CARE Income Guidelines* |
|---|
| Household Size |
| 1-2 |
| 3 |
| 4 |
| 5 |
| 6 |
| 7 |
| 8 |
| Each Additional Person |
| * Effective June 1, 2024 to May 31, 2025 |
Customers may also qualify if they are enrolled in programs like Medicaid/Medi-Cal, WIC, SNAP, LIHEAP, and others. This broad eligibility criteria ensures that CARE reaches a wide spectrum of low-income individuals and families across California.
Oversight and Transparency: The Low-Income Oversight Board (LIOB)
To ensure the effective management and transparency of programs like CARE, California established the Low-Income Oversight Board (LIOB). The LIOB advises the California Public Utilities Commission (PUC) on the energy low-income assistance programs. This oversight board plays a crucial role in monitoring the program’s performance, ensuring funds are used appropriately, and recommending improvements to better serve low-income customers. This layer of oversight adds to the program’s credibility and ensures it remains accountable and effective.
Exploring Further Assistance: The Family Electric Rate Assistance (FERA) Program
For families whose income slightly exceeds the CARE limits, the Family Electric Rate Assistance (FERA) program offers another avenue for support. FERA provides an 18% discount on electricity bills for eligible customers of specific utility companies like Southern California Edison, SDG&E, and PG&E. FERA is also funded through rate surcharges, extending the umbrella of assistance to a slightly broader range of households facing financial challenges.
For more detailed information about CARE, FERA, and other assistance programs, it is recommended to contact your utility company directly. They can provide specific details about eligibility, application processes, and other available support. You can find contact information for major California utilities and links to their CARE program pages in the table below:
| 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 |
Conclusion: Sustaining Energy Affordability Through Community Contribution
In conclusion, the CARE program is funded through a small surcharge on the bills of non-CARE utility customers. This funding model ensures the program’s financial stability and reflects a collective commitment to supporting low-income households in accessing affordable energy. By understanding where the CARE program gets its funding from, we can better appreciate the community-driven nature of this vital assistance program and its crucial role in promoting energy equity across California.
