In July 2026, businesses in California paid an average of 30.56¢ per kWh, the 2nd most expensive of the 50 states and DC and 110.3% above the U.S. commercial average of 14.53¢.
That price is roughly flat compared with a year earlier (up 1.6%).
Over the past 12 months the average commercial customer in California used 5,346 kWh a month and paid $1,440 (U.S.: $896).
Average business electric bill in California
The average commercial customer in California paid $1,440 a month over the last 12 months, the 4th highest of the 50 states and DC. In July 2026 the average business bill was $1,801. These averages mix small shops with large offices and stores, so use the table below to estimate a bill for your own usage.
What would a business pay?
| Monthly use | Per month | Per year |
|---|---|---|
| 5,000 kWh × 30.56¢ | $1,528.00 | $18,336 |
| 10,000 kWh × 30.56¢ | $3,056.00 | $36,672 |
| 50,000 kWh × 30.56¢ | $15,280.00 | $183,360 |
Commercial electricity rates in California by month
Business power in California cost 30.56¢ per kWh in July 2026, compared with 33.61¢ for homes and 25.11¢ for industrial users. See home electricity rates in California.
Utilities serving businesses in California
Southern California Edison Co serves the most business customers in California, with 681,700 commercial accounts.
| Utility | Business customers | Avg. business rate |
|---|---|---|
| Southern California Edison Co | 681,700 | 22.94¢ |
| Pacific Gas & Electric Co. | 581,948 | 38.42¢ |
| San Diego Gas & Electric Co | 156,670 | 39.12¢ |
| Los Angeles Department of Water & Power | 91,316 | 25.00¢ |
| Sacramento Municipal Util Dist | 71,703 | 17.57¢ |
| Modesto Irrigation District | 29,752 | 18.23¢ |
| Imperial Irrigation District | 22,074 | 18.24¢ |
| City of Anaheim | 17,541 | 20.91¢ |
| City of Glendale | 13,452 | 26.05¢ |
| City of Riverside | 12,377 | 20.05¢ |
"Avg. business rate" is what each utility's full-service commercial customers paid on average in 2025 (revenue ÷ kWh sold), shown only for utilities with at least 100 business customers.
Can businesses choose an electricity supplier in California?
Only in limited cases. Individual direct access is capped and mostly non-residential; many cities buy power through Community Choice Aggregation instead. Most businesses buy electricity from their local utility.
How to lower your business electricity cost
- Check your rate schedule. Utilities put businesses on rate classes by size and usage. Ask your utility whether another schedule, such as a time-of-use rate, fits how you use power.
- Manage demand charges. If your bill has a demand charge, it is set by your highest short burst of usage in the month. Staggering when large equipment starts can lower it.
- Cut usage where it is cheapest to do so. Lighting, heating and cooling controls usually pay back fastest; many utilities offer business efficiency rebates.
Business electricity rates in neighboring states
| State | Price per kWh |
|---|---|
| Nevada | 9.72¢ |
| Oregon | 10.60¢ |
| Arizona | 13.12¢ |
| California | 30.56¢ |
California business electricity FAQ
What is the average business electric bill in California?
Commercial customers in California paid an average of $1,440 a month over the last 12 months, using 5,346 kWh. This average covers every kind of business, from small shops to large offices, so a small business will usually pay much less.
What is the commercial electricity rate in California?
The average commercial rate was 30.56¢ per kWh in July 2026, 110.3% above the U.S. average of 14.53¢. Industrial customers paid 25.11¢ per kWh, and homes paid 33.61¢.
Can businesses choose their electricity supplier in California?
Only in limited cases. Individual direct access is capped and mostly non-residential; many cities buy power through Community Choice Aggregation instead. Most businesses buy electricity from their local utility.
What is a demand charge?
Many commercial rates include a demand charge based on the highest amount of power (kW) a business draws during a short interval, often 15 or 30 minutes, in the billing month. Starting large equipment at different times can lower it.
CA commercial and industrial electricity prices and bills: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.