Los Angeles Electricity Rates
- Los Angeles is served by LADWP — the largest municipally owned utility in the US.
- LADWP residential rates range from 24.4¢ to 41.0¢/kWh under a 3-tier schedule.
- A typical LA home using 620 kWh/month pays roughly $175/mo — 51% above average.
LADWP Rate Schedule — R-1A (2026)
LADWP’s standard residential rate uses three tiers that reset each billing cycle. During summer high season (June–September), Tier 3 carries a steep premium that penalizes heavy AC usage. During low season, Tiers 2 and 3 collapse to the same rate.
Tier Thresholds by Zone
LADWP divides LA into two temperature zones. Hotter inland areas (the Valley, East LA) get more kWh at the cheaper Tier 1 rate. The per-kWh rate is the same in both zones — only the breakpoints differ.
What 620 kWh Actually Costs in LA
A typical Los Angeles home uses about 620 kWh/month — roughly 40% less than the national average, thanks to mild winters and minimal heating load. But LA’s high per-kWh rates mean the bill is still above average.
Los Angeles Utilities
Los Angeles is split between two utilities. Where you live determines your provider — you can’t choose between them. California is not a deregulated residential electricity market.
LADWP is city-owned and governed by the LA Board of Water and Power Commissioners — not the CPUC. That means it avoids investor returns and wildfire liabilities that inflate rates at private utilities. LADWP rates run roughly 15–25% cheaper than neighboring Southern California Edison, thanks to retained ownership of generation assets including Castaic hydroelectric, the Intermountain coal-to-gas conversion, and a growing solar and wind portfolio.
If your address is outside LA city limits — Pasadena, Long Beach, the Inland Empire, most of Los Angeles County — you’re served by Southern California Edison (SCE) at roughly 34.4¢/kWh average on a time-of-use rate with a 4–9 PM peak window. SCE outages: 1-800-611-1911.
Los Angeles Electric Bills
At an effective rate of 28.5¢/kWh, here’s what a typical LA home pays across the year. Summer AC drives the spike — and pushes more usage into expensive Tier 2 and Tier 3 territory.
Estimated monthly bill across the year
A typical LA home’s bill ranges from about $137 in Feb to $256 in Aug. Summer AC is the primary driver — but the tier structure amplifies the hit because additional summer kWh land in the most expensive tier. LA’s mild winters keep heating costs minimal compared to the Midwest and Northeast.
California Power Generation
Monthly bills are modeled from the effective average rate and a Southern California seasonal usage profile. Actual bills depend on your LADWP tier and zone. Grid mix reflects California’s CAISO generation sources (CEC/EIA data).
Solar in Los Angeles
LA gets 5.6 peak sun hours per day — among the best in the US. Combined with LADWP’s high rates and retail-rate net metering, solar payback is fast.
LADWP vs. SCE for solar: LADWP still offers retail-rate net metering — your exported kWh offset at the full tier rate, which can be worth 26–41¢/kWh. SCE switched to NEM 3.0 (Net Billing Tariff) in 2023, where export credits dropped to roughly 5–8¢/kWh. This makes solar significantly more valuable for LADWP customers than SCE customers, even though SCE’s retail rate is higher.
Estimate assumes a 7 kW system at $2.75/watt, an 80% performance ratio, and the 30% federal tax credit. LADWP also offers its own solar incentive program — check ladwp.com for current availability.
Los Angeles Electricity FAQ
Common questions about electricity rates, utilities, and service in Los Angeles.
How much does electricity cost in Los Angeles?
It depends on how much you use. LADWP uses a 3-tier system: in July–September 2026, Tier 1 is 26.41¢/kWh, Tier 2 is 32.27¢/kWh, and Tier 3 is 40.97¢/kWh. A typical LA home using 620 kWh/month pays an effective rate of roughly 28.5¢/kWh — about 51% above the national average of 18.83¢/kWh. SCE customers pay even more, averaging around 34.4¢/kWh.
What are LADWP’s rate tiers and how do they work?
LADWP’s R-1A rate divides your monthly usage into three tiers. Zone 1 (cooler coastal areas): Tier 1 = first 350 kWh, Tier 2 = next 700 kWh, Tier 3 = above 1,050 kWh. Zone 2 (hotter areas like the San Fernando Valley): Tier 1 = first 500 kWh, Tier 2 = next 1,000 kWh, Tier 3 = above 1,500 kWh. The per-kWh price is the same in both zones — only the breakpoints differ. During low season (October–May), Tiers 2 and 3 are charged at the same rate. During high season (June–September), Tier 3 carries a steep premium.
Is Los Angeles served by LADWP or Southern California Edison?
LADWP serves customers within the City of Los Angeles — roughly 1.5 million electric accounts. Southern California Edison (SCE) serves most of the rest of Los Angeles County and surrounding counties, covering about 5 million customers. Some smaller cities in the area have their own munis (Pasadena Water & Power, Burbank Water & Power, Glendale Water & Power). You can’t switch between them — your utility is determined by your address.
Why is LA electricity so expensive compared to the rest of the US?
Several factors: California’s Renewables Portfolio Standard (60% by 2030, 100% clean by 2045) requires major grid investments. Wildfire liability has added billions in costs — SCE in particular absorbed massive expenses after the Thomas, Woolsey, and other fires. Transmission costs are high because CA imports power from out of state. And natural gas costs in the West are typically higher than in the Gulf Coast states. LADWP is actually cheaper than most CA utilities because as a municipal utility it avoids the CPUC rate-setting process and investor returns that drive up IOU rates.
How do I report a power outage in Los Angeles?
LADWP: Call 1-800-342-5397 or report online at ladwp.com/outages. SCE: Call 1-800-611-1911 or use sce.com/outage-center. During Public Safety Power Shutoffs (PSPS) — when utilities preemptively cut power during high wildfire risk — both utilities provide advance notification and outage tracking on their websites.
Is solar worth it in Los Angeles?
LA is one of the best cities in the US for rooftop solar. With 5.6 peak sun hours daily and rates of 26–41¢/kWh, a typical 7 kW system saves about $3,262/year and pays for itself in roughly 4.1 years after the 30% federal tax credit. LADWP customers have an additional advantage: LADWP still offers retail-rate net metering, meaning exported solar kWh offset at the full tier rate. SCE’s NEM 3.0 values exports at only 5–8¢/kWh, making batteries nearly essential for SCE solar customers.
Does LADWP offer time-of-use rates?
Yes. LADWP offers an optional R-1B Time-of-Use rate in addition to the standard R-1A tiered rate. The TOU rate charges more during the 1–5 PM peak window but less during off-peak hours. For households that can shift heavy usage (EV charging, laundry, dishwasher) to off-peak hours, TOU can be cheaper than the standard tiered rate. Contact LADWP to switch — it’s free and reversible.