Southern California Edison (SCE) revised its electricity rates effective January 1, 2026, resulting in slightly lower costs for customers.

The average residential electricity rate will drop to 34.5 cents per kilowatt-hour (kWh), down from 35.3 cents per kWh, according to the latest SCE rate advisory.

With the application of the California Climate Credit, the revised average residential rate will be 33.2 cents per kWh.

The California Climate Credit is a semi-annual credit applied to customers’ bills in April and October, SCE stated.

The new rate reflects a combination of increases and decreases to various components collected through electricity rates, SCE said.

Prior to the January revision, SCE increased its rates in October 2025, raising the average residential rate to 35.3 cents per kWh from 31.2 cents per kWh.

SCE said it submits rate change requests to the California Public Utilities Commission (CPUC), which must approve any adjustments.

Every January 1, SCE adjusts its transmission rates governed by the Federal Energy Regulatory Commission for access to the California Independent System Operator–controlled grid. This year’s adjustment resulted in an increase in transmission rates, SCE said.

At the end of each year, SCE adjusts its rates based on actual electricity usage compared to forecasts. If total usage is lower than expected, as it was in 2025, rates are adjusted to offset the difference, SCE said.

In comparison, electricity pricing information from Central Coast Community Energy (3CE) shows lower residential electricity generation rates, though customers still pay standard utility delivery charges.

A joint rate comparison by 3CE and PG&E showed that 3CE’s residential generation rate on a standard tiered plan is 14.6 cents per kWh. After delivery charges, surcharges, and other adjustments, the total electricity cost under 3CE is about 43.5 cents per kWh.

Based on a monthly usage of 377 kWh, the projected monthly bill will total to $163.79, slightly lower than the comparable bundled utility rate, according to 3CE. 

In contrast, SCE presents its pricing using average residential rates rather than plan-specific breakdowns.

While 3CE’s rate comparison offers detailed per-kWh breakdowns for specific plans, SCE’s advisory focuses on overall pricing and upcoming adjustments. As a result, direct comparisons between the two providers depend on a customer’s usage patterns and how rates are calculated.

3CE operates as a community choice energy provider, buying electricity for local customers and depending on utility infrastructure for delivery. 

In contrast, SCE provides both the electricity generation as well as delivery services within its service area.