California CARE and FERA Programs: How to Cut Your Electric and Gas Bill in 2026

Most utility assistance you'll find described online is a one-time payment — a check that covers this month's bill and then you're back to full price next month. California's CARE program works differently. It's a permanent monthly discount, applied automatically to every bill for as long as you stay enrolled, cutting your electric rate by 30 to 35% and your gas rate by 20%, every single billing cycle.

If you live in California and you've never applied for CARE or FERA, you're likely paying significantly more than you need to — and the application takes minutes, requires no ongoing documentation in most cases, and stacks with LIHEAP and every other assistance program on this site.

What CARE Actually Discounts — And Why It's Different From a One-Time Grant

The California Alternate Rates for Energy (CARE) program isn't a bill payment or a grant. It's a rate reduction — your utility charges you less per unit of electricity and gas every month, automatically, without you having to reapply for each billing period.

The discount: 30 to 35% off your electric bill and 20% off your natural gas bill, compared to standard non-CARE rates. Electrical corporations serving 100,000 or more customer accounts — meaning the major investor-owned utilities most Californians use — are required to offer the full 30-35% discount under state law (Public Utilities Code Section 739.1). Smaller utility companies with fewer than 100,000 accounts offer a 20% discount instead.

The Base Services Charge reduction: Beyond the percentage discount, CARE customers also receive a reduced Base Services Charge — the flat monthly fee every customer pays regardless of usage. For Pacific Gas and Electric customers, the standard Base Services Charge of $24.15 per month drops to approximately $6 per month for CARE enrollees. This is a separate benefit stacked on top of the usage discount.

This is a rate structure, not a one-time payment, which is why it matters so much for households on a fixed or limited income — the savings compound every single month rather than providing temporary relief that runs out.

FERA — For Households Who Earn Slightly Too Much for CARE

Family Electric Rate Assistance (FERA) exists specifically for households whose income is a bit above CARE's threshold but who still need help — particularly larger households where CARE's income limits don't scale generously enough.

The FERA discount: 18% off your electric bill. Unlike CARE, FERA does not include a gas bill discount — it applies to electricity only. FERA customers also receive a reduced Base Services Charge, though at a higher rate than CARE customers — approximately $12 per month instead of the standard $24.15.

Who FERA serves: FERA is specifically designed for households of three or more people whose income exceeds CARE's limit but falls within FERA's higher threshold. If you have a larger household and assumed you earn too much for any utility discount, FERA is very likely worth checking — the income limits are meaningfully higher than CARE's.

Availability: FERA is offered by Southern California Edison (SCE), San Diego Gas and Electric (SDG&E), and Pacific Gas and Electric (PG&E). If your utility is one of these three, you're eligible to be considered.

One Application, Two Possible Outcomes

This is the detail that makes applying simple: CARE and FERA share a single application. You don't choose which program to apply for — you submit one application, and your utility company automatically determines whether your household qualifies for CARE first. If your income is too high for CARE, they automatically check whether you qualify for FERA instead.

This means there's no wrong program to apply for and no risk of applying to the wrong one. Submit the application, and the utility routes you to whichever program fits your household size and income.

Income Limits — Effective June 2026 Through May 2027

Both CARE and FERA use income limits based on household size and total gross annual household income before taxes. These limits are updated annually and are meaningfully higher than many people assume — many working households qualify who never think to check.

Income is calculated as of your application date, not based on past income. If you recently lost a job, had your hours reduced, or experienced any income drop, you may now qualify even if you didn't previously — recalculate based on your current situation, not last year's tax return.

For exact current dollar figures by household size, check your utility's CARE/FERA page directly — PG&E, SCE, and SDG&E each publish updated income guideline charts, and the numbers are adjusted for inflation annually. As a general structure: CARE serves lower-income households, and FERA's threshold sits above CARE's, scaling upward with household size.

Automatic Qualification Through Other Public Assistance Programs

You don't need to document your income at all if your household already participates in certain public assistance programs — enrollment in any of these automatically qualifies you for CARE:

• Medicaid / Medi-Cal
• Women, Infants, and Children Program (WIC)
• CalFresh (Food Stamps / SNAP)
• Low Income Home Energy Assistance Program (LIHEAP)
• Supplemental Security Income (SSI)
• Temporary Assistance for Needy Families (TANF) or Tribal TANF
• National School Lunch Program — Free Lunch enrollment
• Head Start (Income Eligible, Tribal Only)
• Bureau of Indian Affairs General Assistance

If you already receive LIHEAP — which most readers of this site have applied for or are considering — you're automatically eligible for CARE. There's no additional income documentation required. State your LIHEAP enrollment on the CARE application and skip the income verification step entirely.

How to Apply — By Utility Company

Pacific Gas and Electric (PG&E): Apply online at pge.com/carefera, by mail using a printed application sent to PG&E CARE/FERA Program, P.O. Box 29647, Oakland, CA 94604-9647, or by email to CAREandFERA@pge.com with "FERA application" or "CARE application" in the subject line.

Southern California Edison (SCE): Call the Automated Telephone System at 1-800-798-5723, or download and mail a printed application. SCE representatives may also proactively call customers who appear to qualify — legitimate SCE representatives will never ask for payment, banking information, or passwords to enroll you.

San Diego Gas and Electric (SDG&E): Apply through SDG&E's website or contact customer service directly for application assistance.

Smaller and municipal utilities: Many smaller California utilities and municipal providers — including MCE Clean Energy, the City of Healdsburg, Palo Alto's Rate Assistance Program, and others — run their own versions of these discount programs, sometimes with different names and different discount percentages. If your utility isn't PG&E, SCE, or SDG&E, search "[your utility name] CARE program" or call their customer service line directly.

Application requirements: In most cases, no additional documentation is required if you're applying based on income — you self-certify your household income and size on the application. If you're qualifying automatically through another public assistance program, you may need to provide your enrollment confirmation for that program.

Renewal — What Most Enrollees Don't Know

CARE and FERA enrollment isn't permanent. You must renew every two years — or every four years if you're on a documented fixed income. Your utility will send a renewal application approximately three months before your discount expires.

The mistake that costs households money: Missing the renewal notice, whether because it went to an old address or got lost among other mail, and losing the discount without realizing it until a bill arrives at full price. Watch for renewal notices specifically, and if you've moved recently, update your address with your utility proactively rather than waiting for a renewal notice that may not reach you.

Medical Baseline — A Related Program Worth Knowing

If you or someone in your household has a qualifying medical condition that requires higher-than-normal energy use — certain medical equipment, temperature-sensitive medications, or specific health conditions — California's Medical Baseline Allowance provides an additional 16.5 kilowatt-hours per day of lower-priced baseline energy, year-round. This stacks with CARE or FERA and requires a physician's certification. Ask your utility specifically about Medical Baseline in addition to CARE/FERA when you apply.

How CARE/FERA Stacks With LIHEAP and Other Programs

CARE and FERA provide an ongoing monthly rate reduction. LIHEAP provides a separate, typically annual, one-time payment credited to your account. These are not competing programs — they're designed to stack. A household enrolled in CARE that also receives a LIHEAP benefit gets both the permanent reduced rate and the one-time seasonal payment applied on top of it.

The practical sequence: apply for CARE/FERA first since it's fast, requires minimal documentation, and provides immediate ongoing savings. Then apply for LIHEAP through your local Community Action Agency for additional one-time assistance. Our LIHEAP application guide covers that process in full.

Frequently Asked Questions

How much will CARE actually save me each month?

CARE provides a 30-35% discount on electric bills (for utilities with 100,000+ accounts) and a 20% discount on natural gas bills, plus a reduced Base Services Charge of approximately $6 per month instead of the standard $24.15. The exact dollar savings depend on your usage, but for an average household this frequently amounts to $30 to $80 or more in monthly savings depending on usage and season.

What's the difference between CARE and FERA?

CARE offers a larger discount (30-35% electric, 20% gas) for lower-income households. FERA offers a smaller discount (18% electric only, no gas discount) for households — typically three or more people — whose income is slightly above CARE's limit. You submit one shared application and your utility determines which program fits your household.

Do I need to provide income documentation to apply?

In most cases, no. You self-certify your household size and income on the application. If you already participate in a qualifying public assistance program like Medi-Cal, CalFresh, or LIHEAP, you can qualify automatically without any income documentation at all — just note your enrollment in that program on the application.

How often do I need to renew?

Every two years for most households, or every four years if you're on a documented fixed income. Your utility sends a renewal notice about three months before expiration — watch for it, especially if you've recently moved, to avoid losing the discount without realizing it.

Can I get CARE/FERA if I rent rather than own my home?

Yes, as long as the utility bill is in your name. If you're a sub-metered tenant — meaning your landlord bills you for utilities rather than you having a direct account — you'll need your landlord's energy bill to apply. Contact your utility for guidance on sub-metered tenant applications specifically.

CARE and FERA income limits are effective June 1, 2026 through May 31, 2027, and are adjusted annually. Contact your specific utility company directly to confirm current income guidelines and application procedures.

Related: LIHEAP Application Guide 2026 | Low Income Energy Assistance Programs | How to Stop a Utility Shutoff | Community Action Agency Utility Help | Utility Assistance for Seniors | Budget Billing Programs