Understanding Income Guidelines for the California CARE Program

The California Alternate Rates for Energy (CARE) program is designed to help low-income households manage their energy costs by providing significant discounts on their electricity and natural gas bills. If you’re a California resident struggling to afford your utility bills, understanding the CARE program’s income guidelines is the first step to see if you qualify for assistance.

What is the CARE Program?

The CARE program offers a crucial financial relief for eligible customers, providing a 30-35 percent discount on electric bills and a 20 percent discount on natural gas bills. This discount can substantially lower your monthly expenses, making energy more affordable. Funded through a surcharge paid by other utility customers, CARE is a state-mandated program demonstrating California’s commitment to supporting its vulnerable residents.

To determine if you’re eligible for these significant savings, the primary criteria are based on your household income. However, enrollment in certain public assistance programs can also automatically qualify you for CARE, regardless of your exact income level. Let’s delve into both aspects of eligibility.

Income Eligibility for CARE Program

The CARE program has specific income limits that are updated annually to reflect changes in the cost of living. As of June 1, 2024, to May 31, 2025, the income guidelines are as follows:

CARE Income Guidelines*
Household Size
1-2
3
4
5
6
7
8
Each Additional Person
* Effective June 1, 2024 to May 31, 2025

If your total household income falls at or below these limits, you are likely eligible for the CARE program based on income. “Household income” generally includes the combined gross income of everyone living in your home.

Automatic Enrollment via Public Assistance Programs

Beyond income thresholds, you can also qualify for CARE if you are currently enrolled in any of the following public assistance programs:

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

Enrollment in any of these programs automatically makes you eligible for CARE, simplifying the application process. If you participate in one of these programs, you can provide proof of enrollment when applying for CARE to expedite your application.

How to Apply for the CARE Program

To apply for the CARE program and start saving on your energy bills, you need to contact your utility company directly. Each utility company manages its CARE enrollment process. You can request an application form and get detailed information from their customer service or website.

Here’s a list of major utility companies in California and links to their CARE program pages:

Phone Numbers and Websites for Energy Assistance Programs
Utility
PG&E
Edison
SDG&E
SoCalGas
Alpine Nat’l Gas
Bear Valley Elect
PacifiCorp
Liberty Utilities
Southwest Gas
West Coast Gas

Application forms are also often available through various community agencies and organizations that assist low-income individuals and families. These agencies can provide support throughout the application process.

Understanding FERA: An Additional Assistance Program

For families whose income slightly exceeds the CARE guidelines, California offers another program called the Family Electric Rate Assistance (FERA) program. FERA provides an 18% discount on electricity bills for eligible customers of Southern California Edison, San Diego Gas and Electric Company, and Pacific Gas and Electric Company.

Here’s a comparison of income limits for CARE and FERA programs:

Household 200% of Federal Poverty Guidelines (CARE/ESAP) +1 250% of Federal Poverty Guidelines (FERA)
3 $51,641 $64,550
4 $62,401 $78,000
5 $73,161 $91,450
6 $83,921 $104,900
7 $94,681 $118,350
8 $105,441 $131,800
Each Additional Person $10,760 $13,450

If your income is above the CARE limits but within the FERA limits, you should explore the FERA program to see if you qualify for this additional assistance. Contact your electric utility company for more details on FERA.

Conclusion: Take Action to Lower Your Energy Bills

California’s CARE program is a vital resource for low-income households, providing substantial discounts on energy bills. Understanding the income guidelines for the CARE program and other eligibility criteria is crucial for accessing this support. If you believe you might be eligible for CARE or FERA, don’t hesitate to contact your utility company or a local community agency today. Lowering your energy costs can significantly improve your household budget and financial stability.

For further information and to start your application, please visit the websites listed for each utility provider or contact them directly. Take advantage of these valuable programs designed to help you manage your energy expenses.

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