Claire Dawson
California offers discounted utility rates to low-income households, government-owned hospitals and health clinics, community-based organizations, and community-based healthcare organizations. The California Alternate Rates for Energy (CARE) program offers a 20-35% discount on electricity and gas bills for eligible customers. Electrical corporations with fewer than 100,000 customer accounts offer a 20% discount, while those with 100,000 or more accounts offer a 30-35% discount. CARE is funded by a rate surcharge paid by all other utility customers. Additionally, the federal government provides financial assistance to manage residential water utility costs, and some Internet Service Providers (ISPs) offer discounted plans based on household income.
| Characteristics | Values |
|---|---|
| Name of the program | California Alternate Rates for Energy (CARE) |
| Type of discount | Monthly discount |
| Discount on electricity bill | 30-35% |
| Discount on natural gas bill | 20% |
| Discount on phone bills | Yes, with the California LifeLine Program |
| Qualifying criteria | Household income, participation in public assistance programs |
| Application | Same as FERA |
| Renewal | Every 2 years, 4 years if on a fixed income |
| Administered by | SoCalGas under the California Public Utilities Commission |
| Allocation | First-come, first-served basis |
| Eligible customers | Eligible customers are those whose total household income is at or below the income limits |
| Eligible institutions | Agricultural employee housing facility, migrant services and nonprofit migrant farm worker housing centers, or a nonprofit group living facility |
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What You'll Learn
California Alternate Rates for Energy (CARE) Program
The California Alternate Rates for Energy (CARE) Program offers a discount on energy bills for eligible households. The average discount is about $500 per year, with a 30-35% discount on electricity bills and a 20% discount on natural gas bills. Electrical corporations with 100,000 or more customer accounts in California offer the higher discount, while those with fewer than 100,000 customers offer a 20% discount.
Eligibility for the CARE program is based on household income, with those at or below certain limits qualifying for the program. These income limits may be adjusted annually depending on inflation. Customers may also be eligible if they are enrolled in public assistance programs such as Medicaid/Medi-Cal, Women, Infants and Children Program (WIC), Supplemental Security Income (SSI), and Temporary Assistance for Needy Families (TANF), among others.
To apply for the CARE program, individuals must provide their name and primary residence address. They cannot be claimed on another person's income tax return, except by a spouse or domestic partner. Following enrollment, income verification may be required to prove that the household continues to meet the program's income eligibility requirements.
The CARE program is funded through a rate surcharge paid by all other utility customers. It is advised that interested applicants contact their utility company or check the company website for application forms and more information.
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CARE eligibility and qualifying criteria
The California Alternate Rates for Energy (CARE) program offers a 30-35% discount on electricity bills and a 20% discount on natural gas bills. The eligibility criteria for the CARE program are based on total household income, with those at or below specific income limits being eligible for the program. Electrical corporations with 100,000 or more customer accounts in California offer a 30-35% discount, while those with fewer than 100,000 customers offer a 20% discount. These income limits may be adjusted annually depending on inflation.
Additionally, customers may also qualify for CARE if they are enrolled in certain public assistance programs, such as Medicaid/Medi-Cal, Women, Infants and Children Program (WIC), Supplemental Security Income (SSI), and Temporary Assistance for Needy Families (TANF), among others. CARE is funded through a rate surcharge paid by all other utility customers.
In the context of the Care Act, eligibility criteria are outlined in Section 13 of the Care Act 2014 and the Care and Support (Eligibility Criteria) Regulations 2015. These criteria are applied nationally, without local variations, to determine if an individual has eligible needs for care and/or support. The criteria consist of three conditions that must be addressed in a specific order.
For adults, these conditions are:
- The adult's needs arise from, or are related to, a physical or mental impairment or illness.
- As a result of these needs, the adult is unable to achieve two or more specified outcomes, as described in the guidance.
- There is, or is likely to be, a significant impact on the adult's wellbeing as a consequence of being unable to achieve these outcomes.
For carers, the conditions are slightly different:
- The needs arise as a consequence of providing necessary care for an adult.
- The carer's physical or mental health is affected or at risk of deteriorating, or they are unable to achieve any of the listed outcomes.
- There is a significant impact on the carer's wellbeing.
It is important to note that eligibility for the CARE program is determined by assessing an individual's needs, and local authorities must provide a record of the eligibility determination and the reasons for it.
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FERA program
California offers discounted utilities to eligible customers through the California Alternate Rates for Energy (CARE) and the Family Electric Rate Assistance (FERA) programs. These programs are funded through a rate surcharge paid by all other utility customers.
The CARE program offers a 30% to 35% discount on electricity bills and a 20% discount on natural gas bills for eligible customers. To qualify, customers must have a total household income that is at or below the specified income limits, which may be adjusted annually depending on inflation. Additionally, customers enrolled in public assistance programs such as Medicaid/Medi-Cal, Women, Infants and Children Program (WIC), Supplemental Security Income (SSI), and Temporary Assistance for Needy Families (TANF) may also be eligible for CARE.
The FERA program is designed for families whose household income slightly exceeds the CARE allowances. It provides an 18% discount on electricity bills for eligible customers.
Both the CARE and FERA programs are available to customers of Southern California Edison, San Diego Gas and Electric Company, and Pacific Gas and Electric Company. Enrollment methods vary and may include online applications, mail, or fax. To maintain enrollment in these programs, customers must renew their applications every two years or four years for those with fixed incomes.
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Discounts for government-owned hospitals
The California Alternate Rates for Energy (CARE) program offers a discount on utility bills for eligible customers. To be eligible, the total household income must be at or below the income limits indicated. Customers may also be eligible if they are enrolled in public assistance programs such as Medicaid/Medi-Cal, Women, Infants and Children Program (WIC), Healthy Families A & B, National School Lunch’s Free Lunch Program (NSL), Food Stamps/SNAP, and others.
The CARE program offers a 20% discount on gas and electricity bills for electrical corporations with fewer than 100,000 customer accounts in California. For electrical corporations with 100,000 or more customer accounts, the discount is higher, ranging from 30% to 35%. These income limits are subject to adjustment each year, depending on inflation.
In addition to the CARE program, California also offers the FERA program, which provides an 18% discount on electricity bills for customers whose household income slightly exceeds the CARE allowances.
Government-owned hospitals and health clinics are among the institutions that qualify for discounted utilities in California. The California Public Utilities Commission (CPUC) offers a 50% discount to qualifying government-owned hospitals, along with K-12 schools, libraries, community colleges, community-based organizations, and community-based healthcare organizations. This discount applies to assistive telecommunications equipment, speech-generating devices, and relay services for consumers with hearing, vision, speech, cognitive, and mobility disabilities.
Furthermore, most energy utilities in California offer free energy-efficient appliances or rebates to consumers with limited household incomes. These utilities also provide special payment plans and cash assistance to help low-income customers facing financial hardship.
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Other financial assistance and savings
California has a range of financial assistance and savings initiatives in place to support hospitals and healthcare providers. Firstly, the California Alternate Rates for Energy (CARE) program offers discounted utility bills for eligible customers. Electrical corporations with 100,000 or more customer accounts offer a 30-35% discount on electricity bills, while those with fewer than 100,000 customers offer a 20% discount. Additionally, for those whose income slightly exceeds CARE qualifications, the FERA program provides an 18% discount on electricity bills. These programs are funded by a rate surcharge paid by all other utility customers.
The state also provides no-cost weatherization services to those who meet the CARE income limits, helping to reduce energy demand and conserve natural resources. Furthermore, some gas and electric utilities offer cash assistance and special payment plans to consumers facing financial hardship, ensuring they are billed at the lowest residential rate.
In terms of healthcare-specific financial assistance, California law requires hospitals to provide assistance regardless of residency or immigration status. Non-profit hospitals must offer charity care for all emergency and medically necessary treatments, and co-pays are prohibited for emergency services. Additionally, hospitals like Dignity Health offer financial assistance for uninsured or underinsured patients, potentially reducing bills to the Amount Generally Billed (AGB), a federally set amount reflecting what private insurers and Medicare would pay.
California also has a Hospital Bill Complaint Program, which reviews hospital decisions regarding a patient's eligibility for financial assistance. This program ensures that patients can seek support and that their rights are protected.
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Frequently asked questions
Yes, CA offers discounted utilities to government-owned hospitals and health clinics.
The discount rate for hospitals is not specified, but K–12 schools, libraries, community colleges, and community-based organizations receive a 50% discount.
CA offers the California Alternate Rates for Energy (CARE) program, which provides a 20% discount on gas and electricity bills for eligible low-income households. Electrical corporations with 100,000 or more customers offer a 30-35% discount.
