Understanding AB 205 and the New Base Services Charge on PG&E and SCE Bills

  


Understanding AB 205 and the New Base Services Charge on PG&E and SCE Bills

In 2022, the California Legislature passed Assembly Bill 205, directing the California Public Utilities Commission (CPUC) to modernize how residential electricity bills are structured. The result is the new Base Services Charge now appearing on Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) bills.

The stated goals were to create more equitable cost sharing, lower the per-kilowatt-hour (kWh) price of electricity to encourage electrification (such as EVs and heat pumps), and ensure the grid remains reliable for all customers — including those with solar.

Important Update: The New Base Services Charge (Effective 2025–2026)

What Is the Base Services Charge?

This is a fixed monthly fee applied to every residential customer connected to the grid. It replaced the old Minimum Charge and cannot be offset by solar credits or net energy metering.

Here are the current rates:

  • PG&E (most customers): Started March 2026 — approximately $24.00 per month

  • SCE (most customers): Started November 2025 — approximately $24.15 per month

Discounted Rates (available to qualifying customers):

  • CARE program (low-income): ~$6.00/month

  • FERA or deed-restricted affordable housing: ~$12.00 – $12.15/month

This fixed charge covers essential grid services including maintenance, infrastructure upgrades, billing, metering, and reliability programs.

To help balance the new charge, both utilities lowered their per-kWh delivery rates.

How This Affects Your Solar System

Good news for most solar customers:

If your system was installed before April 2023 and is on the original NEM 2.0 tariff, you are grandfathered for 20 years from your Permission to Operate (PTO) date. You will continue receiving full retail-rate credits for energy exported to the grid.

What you can realistically expect now:

  • A new ~$24 Base Services Charge line item every month.

  • If your solar previously kept your true-up near zero, you will likely now have a minimum bill of roughly $20–$35 per month.

  • Overall solar savings remain strong, but true “zero-dollar” bills have become much harder to achieve.

Systems installed after April 2023 fall under the newer NEM 3.0 / Net Billing Tariff, which offers significantly lower export credits. These customers will feel a larger impact from the fixed charge.

Why California Electricity Costs So Much

California has excellent solar, wind, hydro, geothermal, and natural gas resources, yet we pay nearly double the national average (~33–35 ¢/kWh vs. ~18 ¢ nationally). Policy, regulation, permitting delays, and wildfire mitigation red tape are major contributing factors.

The reasons are complex and include:

  • Massive investments in wildfire mitigation and grid hardening

  • Integration of large amounts of renewable energy

  • Aging infrastructure upgrades

  • State policies pushing aggressive electrification goals

  • High fixed costs of maintaining a reliable grid for millions of customers

The new Base Services Charge doesn’t eliminate these underlying cost drivers — it simply redistributes how those costs are collected. By moving some costs from variable per-kWh rates to a fixed charge, the CPUC hopes to make additional electricity usage more affordable and encourage homes and businesses to electrify.

Final Thoughts: What Should You Do?

The Base Services Charge is now a permanent part of California utility bills. While it may feel frustrating — especially for solar owners who worked hard to lower their bills — it reflects the reality of maintaining a modern, resilient, and increasingly renewable grid.

Action steps for homeowners:

  1. Review your latest bill carefully and make sure you understand the new charge.

  2. Shift usage to daytime solar hours when possible.

  3. Consider adding battery storage to maximize self-consumption (strongly recommended — it helps offset the fixed charge).

  4. Improve home efficiency with better insulation, LED lighting, and efficient appliances.

  5. Check if you qualify for CARE or FERA discounts.

  6. If you’re thinking about going solar, act soon and run the numbers carefully under current NEM 3.0 rules.

California’s energy transition is ambitious. Understanding these billing changes helps you make smarter decisions for your household and better manage your energy costs going forward.

Stay informed. Stay empowered.

 

 

Curtis Anthony Neil/Grok 4.0/ LibreOffice. May 27th. 2026 AD.

Bakersfield, California, USA, North America, Planet Earth (Terra), the third planet from the Sun (Sol), Solar System, Orion Arm, Milky Way Galaxy

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