California · Limited or special pathway
Commercial electricity in California
California is not an ordinary retail choice market. Direct Access is capped and administered by allocation, and Community Choice Aggregation is determined by location rather than by shopping. For most commercial accounts the controllable cost sits in rate schedule selection, time-of-use windows and demand charges.
What California businesses pay for electricity
Average commercial electricity price in California
27.00¢ per kWh
12 months to August 2026 · EIA, preliminary
- vs US average (13.87¢)+95%above the national figure
- vs previous 12 months+5.4%from 25.61¢
- Final 2025 (EIA-861)26.16¢2nd highest of 51 markets
- Average commercial customer5,360 kWha month, about 1,402 at the 2025 average
- Since 2020+49%US +26% over the same years
Show the numbers
| Period | California | United States |
|---|---|---|
| 2010 | 13.09¢ | 10.19¢ |
| 2011 | 13.05¢ | 10.24¢ |
| 2012 | 13.41¢ | 10.09¢ |
| 2013 | 14.20¢ | 10.26¢ |
| 2014 | 15.62¢ | 10.74¢ |
| 2015 | 15.73¢ | 10.64¢ |
| 2016 | 15.07¢ | 10.43¢ |
| 2017 | 15.76¢ | 10.66¢ |
| 2018 | 16.34¢ | 10.67¢ |
| 2019 | 16.67¢ | 10.68¢ |
| 2020 | 17.53¢ | 10.59¢ |
| 2021 | 19.18¢ | 11.22¢ |
| 2022 | 21.81¢ | 12.41¢ |
| 2023 | 23.91¢ | 12.59¢ |
| 2024 | 25.54¢ | 12.75¢ |
| 2025 | 26.16¢ | 13.37¢ |
| 12 months to Aug 2026 (preliminary) | 27.00¢ | 13.87¢ |
Where the California price goes
Where businesses buy energy from a competitive supplier, EIA reports the supplier's revenue and the utility's delivery revenue separately. In California in 2025, 58% of the average commercial price was delivery — the part that does not change when you change supplier.
12.58¢ energy 17.07¢ delivery 41% of California's commercial kWh is sold this way
This is the average revenue per kWh from every commercial customer in California, from a corner shop to a hospital: energy, delivery, demand and other charges billed, divided by kWh sold. The average customer uses more than a typical small business, because a few very large customers pull the mean up. It is dated context for reading a bill — not a quote, not an available offer, and not what any one business pays.
What a typical building pays in California
The same federal survey of commercial buildings behind the cost estimator, run for a typical-sized building of eight common kinds and priced at California's average commercial price for the 12 months to August 2026. Typical size is the median floor area of the surveyed buildings of that kind, and the middle half is the range between the 25th and 75th percentile of them.
| Building | Typical size | Typical bill | Middle half | Survey basis |
|---|---|---|---|---|
| Office building | 5,000 sq ft | $1,200 | $660 to $1,800 | 306 in the West |
| Medical, dental or outpatient clinic | 5,500 sq ft | $1,400 | $1,000 to $2,400 | 67 in the West |
| Retail store or showroom | 6,500 sq ft | $1,500 | $670 to $2,900 | 72 in the West |
| Grocery or convenience store | 2,400 sq ft | $2,900 | $2,000 to $4,300 | 91 nationwide |
| Sit-down restaurant or cafeteria | 3,850 sq ft | $3,500 | $2,000 to $5,000 | 132 nationwide |
| Warehouse or distribution centre | 6,700 sq ft | $670 | $290 to $1,400 | 161 in the West |
| Hotel, motel or inn | 12,000 sq ft | $4,300 | $3,000 to $5,500 | 77 in the West |
| Gym, fitness or recreation facility | 8,300 sq ft | $1,700 | $1,300 to $3,300 | 148 nationwide |
A screening estimate, not a quote. The price is an average across every commercial customer in California, scaled for building size, and the buildings are whole buildings from EIA's 2018 survey, so a suite inside a larger building, or one with unusual hours or equipment, can differ a lot. Estimate your own building in California, or check a real bill.
What utilities billed commercial customers in California
For each utility, EIA records how many commercial customers it had in 2025 and the average revenue per kWh it billed them. The 10 largest of 29 California utilities with 500 or more commercial customers are shown.
| Utility | Type | Bundled customers | Bundled price per kWh | Delivery-only customers | Delivery-only price per kWh |
|---|---|---|---|---|---|
| Southern California Edison Co | Investor-owned | 453,722 | 22.94¢ | 227,978 | 12.64¢ |
| Pacific Gas & Electric Co. | Investor-owned | 200,371 | 38.42¢ | 381,577 | 20.93¢ |
| San Diego Gas & Electric Co | Investor-owned | 31,818 | 39.12¢ | 124,852 | 17.69¢ |
| Los Angeles Department of Water & Power | Municipal | 91,316 | 25.00¢ | 0 | — |
| Sacramento Municipal Util Dist | Political subdivision | 71,703 | 17.57¢ | 0 | — |
| Modesto Irrigation District | Political subdivision | 29,752 | 18.23¢ | 0 | — |
| Imperial Irrigation District | Political subdivision | 22,074 | 18.24¢ | 0 | — |
| City of Anaheim | Municipal | 17,541 | 20.91¢ | 0 | — |
| City of Glendale | Municipal | 13,452 | 26.05¢ | 0 | — |
| City of Riverside | Municipal | 12,377 | 20.05¢ | 0 | — |
Together the 10 shown serve about 95% of California’s 1,775,143 commercial customers, and all 29 serve about 99%. All California commercial customers together averaged 26.16¢ per kWh in 2025.
Bundled is the price paid by commercial customers who buy their energy and delivery from the utility, so it is an all-in price. Delivery-only is what the utility billed customers who buy their energy from a competitive supplier, so it is the delivery charge alone and cannot be compared with a bundled price. Each figure averages every commercial customer of that utility and service type, from a corner shop to a campus, so a utility with larger customers averages a lower price per kWh. It is dated context, not a quote and not an offer, and the utility that serves an address is named on its bill.
Source: U.S. Energy Information Administration, Form EIA-861, 2025 final data. Utilities across the country · every utility as a CSV.
California is not an ordinary retail choice market. Access is capped or threshold-based rather than open, so whether a specific California account qualifies must be checked against current program rules before any comparison is discussed. Accounts that do not qualify still have controllable cost in rate schedule fit and demand charges.
Source: California Public Utilities Commission market structure; this site's market registry · 2026-10-31
Limited or special pathway. Do not present capped Direct Access as ordinary retail choice.
What a California commercial account can actually do
California is not an ordinary shopping market. Access is limited, and whether a specific account qualifies has to be checked against the current program rules before any comparison is worth discussing. This is the single most misrepresented category of market in this industry: a site that treats a capped or threshold-based program as ordinary retail choice will generate a great many enquiries it cannot serve.
So the first question is eligibility, not price. That means establishing which program the account would be entering, whether it is open, whether there is a queue or an enrollment window, what the demand or size threshold is, and what exit terms apply if the account later wants to return to regulated service.
For accounts that do not qualify — which is most of them — the controllable cost is still real, and it sits in the tariff rather than in a contract:
- Rate schedule fit. Computed from your own usage against a publicly filed alternative tariff, so it is verifiable by you or your accountant.
- Demand charges and ratchet exposure. Frequently the largest controllable line on the bill, and unaffected by any supply arrangement.
- Billing accuracy. Meter multipliers, customer classification and misapplied riders.
- Efficiency and load management, including any CPUC-approved program the account already qualifies for.
Where California sits
Every US market on one view, coloured by what an account can actually do there. California is highlighted, and every other tile is a link.
- 14 you can choose — businesses can pick their supplier
- 6 some can choose — by size, cap or program
- 31 utility only — other charges can still be fixed
Number on each tile: average commercial electricity price in cents per kWh, 12 months to August 2026 (EIA, preliminary).
Before we can answer anything specific
We verify from the account, not from the address alone:
- The utility territory actually serving the service address
- The account identifier and customer class
- Current supply arrangement, including any aggregation and its termination status
- Contract expiry date and whether the decision window is open
- 12 months of consumption and, where metered, peak demand
Supplier comparison is not open in California yet. The free bill check shows how much of your bill a supplier could even touch and what is worth a look today, which is the same first step whichever way you go.