CARE Spending Increased by 68 Percent

The California Public Utilities Commission (CPUC) has authorized the state's four largest utilities to spend $286 million next year for the California Alternative Rates for Energy (CARE) a low-income discount program.

In an order dated September 5, the Commission adopted the 68 percent increase in funding, applicable to Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison, and Southern California Gas Company.

The increase is in line with the Commission's goal, announced in July 2002 of  increasing CARE enrollment to 100 percent of low-income customers that are eligible for, and desire to participate in, the CARE program.

Historically, CARE spending by the four utilities had been about $126 million. It jumped to $194 million last year, in part due to a one-time allocation of $100 million from the state in May 2001, as well as to the CPUC having increased the program eligibility level from 150 percent of FPG to 175 percent. Additionally, enrollment is expected to increase due to an automatic enrollment program adopted by the Commission in the above-cited July decision. Customers of the four utilities will be automatically enrolled in CARE if they are enrolled in several other low-income programs, including LIHEAP. According to the order, the four utilities had enrolled 2,089,972 households as of December 31, 2001. Each was given penetration targets to meet during the upcoming program year, in order to bring enrollment to over 3.2 million households.

Page Last Updated: December 7, 2005