## C7 Statewide Electricity Rate Assumptions

Question

The Energy Commission assumed an average statewide residential retail rate of 18 cents per kWh to calculate the monthly energy bill savings of $80. What assumptions did the Energy Commission make to reach this number?

Answer

The Energy Commission conservatively chose 18 cents per kWh by considering the residential rates of several utilities, including Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), and Los Angeles Department of Water and Power (LADWP). Together, these utilities cover about 90 percent of the state’s ratepayers. The following table summarizes these rates for each utility.

2018 Residential Flat Rates. Cents per kWh
Tier | PG&E - Schedule E1, EM | SCE - Schedule D | SDG&E - Summer, Schedule DR | LADWP - June, Schedule R1
Base | 21.1 | 17.5 | 27 | 15.5
Mid-Tier | 27.9 | 24.7 | 47 | 19.6
High-Tier | 43.3 | 34.5 | 55 | 26.4
Average | 25.3 | 20.9 | 33.5 | 17.7

Given these data, it appears that the Energy Commission’s estimate of statewide average electricity cost of 18 cents/kWh is on the low side. If the actual rates are higher than 18 cents per kWh, then savings will be even greater for the utility customer.