SCE Rate Changes Explained

You’re not imagining it — energy bills have been climbing. California currently has among the highest electricity rates in the U.S., not only growing faster than inflation but also outpacing increases in other states. Across our region, residents and businesses are noticing higher energy costs and looking for clear answers about what’s driving these changes.

We’ve gathered the key information you need to understand the recent Southern California Edison (SCE) rate changes, how they affect Orange County Power Authority (OCPA) customers, and what options you have to manage your energy costs. This guide breaks down the complex factors behind rising rates and provides practical steps to help lower your monthly bills.

Generation makes up about 30% of a customer’s bill, and transmission (referred to as “delivery”), is about 70% of customer’s bill.

When SCE raises delivery rates, it affects everyone in its service area equally whether you’re an OCPA
customer or not. 

According to a report from The Public Advocates Office, Southern California Edison’s rates have increased 83% over the past 10 years. A more recent report shows that in the three years since OCPA launched (January 2022-April 2025) – SCE’s residential rates have increased by 25%.

The 2025 OCPA rate design is based off of SCE’s rates, and adjusted to maintain our Basic Choice plan at a 3% discount off SCE’s equivalent generation rate. Smart Choice with significantly more renewable energy is the Basic Choice rate plus 1 cent per kWh, and 100% Renewable Choice is Basic Choice plus 1.5 cents per kWh.

As of October 1, 2025, SCE’s rates increased. The rate increase is the net result of both increases and decreases to various items collected in electricity rates: 

• The rate increase is the cumulative result of decisions issued this year for multiple SCE requests.  
• SCE removed $665 million of costs from delivery rates that have been fully recovered from customers. This results in a decrease to rates.
• SCE implemented an increase of $1.685 billion in rates to recover funding approved in SCE’s 2025 General Rate Case. The CPUC approved the recovery of these costs in rates in a decision issued in September of 2025 (Decision 25-09-030). This results in an increase to rates.  
• SCE is implementing an increase of $536 million through rates, for costs already incurred between 2022 and 2023 associated with reducing the risk of catastrophic wildfires. The increase also includes costs incurred for restoration efforts from catastrophic events in 2020-2022. The CPUC approved the recovery of these costs in rates in decisions issued in June of 2025 (Decision 25-06-017 and Decision 25-06-051). This results in an increase to rates.
• SCE is removing a $751 million refund from generation rates that has been fully returned to bundled customers. This refund was the result of lower natural gas and power prices relative to the forecasts used to set rates in 2024. This results in an increase to rates. 

The biggest increases have happened in the delivery part of energy bills. Currently, generation rates are about 50% less than delivery rates. That means customers pay twice as much to SCE to have electricity delivered as they do for the electricity itself that OCPA purchases.