California law requires a community that supplies gas or electricity through a utility master meter to pass through CARE and FERA utility discounts to eligible residents: the Mobilehome Residency Law for CARE, the Public Utilities Code for FERA. Cal. Civ. Code § 798.43.1(c) requires the full amount of the CARE discount, as the serving utility's schedule defines it, to reach every qualified resident, and Cal. Pub. Util. Code § 739.5(a) gives a FERA resident the discount a direct customer would receive. No portion may be retained by management.
For operators, CARE and FERA compliance involves more than just applying a discount to a bill. The law requires an annual CARE notice and the full discount; doing that reliably takes enrollment tracking, accurate calculation and careful handling of income-related data. Getting any piece wrong — the notice, the percentage, the application — means a resident does not receive the discount they are owed.
This guide covers what CARE and FERA are, what the law requires of operators, how discounts should appear on bills, and common mistakes to avoid. For context on how these obligations fit into the broader regulatory picture, see the complete compliance guide.
What Are CARE and FERA?
CARE and FERA are California Public Utilities Commission (CPUC) programs that provide discounted utility rates to qualifying low-income households. Both programs exist because energy costs represent a disproportionate share of household expenses for low-income Californians, and the state has determined that rate relief is appropriate.
CARE — California Alternate Rates for Energy
CARE provides a discount on both electric and gas service. At electric utilities with 100,000 or more customer accounts, the average effective CARE discount is set between 30% and 35% (Cal. Pub. Util. Code § 739.1(c)(1)); the exact discount, and the charges it applies to, are on each utility's CARE schedule. Eligibility is based on total household income no greater than 200% of the federal poverty guideline (§ 739.1(a)). Residents may also qualify through participation in certain public assistance programs, including:
- CalWORKs (California Work Opportunity and Responsibility to Kids)
- CalFresh / SNAP (Supplemental Nutrition Assistance Program)
- Medi-Cal
- Supplemental Security Income (SSI)
- Low Income Home Energy Assistance Program (LIHEAP)
- Tribal Head Start, Tribal TANF and Bureau of Indian Affairs general assistance
- National School Lunch Program (NSLP)
- Women, Infants, and Children (WIC) program
This list follows SCE's current CARE application (form 14-783); the serving utility's own application controls. CARE enrollment is verified by the serving utility, which recertifies enrollment under CPUC-approved rules.
FERA — Family Electric Rate Assistance
FERA provides a discount on electric service only — there is no FERA equivalent for gas. By statute it is an 18% line-item discount on the bill calculated at the applicable rate, offered by the state's three largest electric utilities — PG&E, SCE and SDG&E — to households with income between 200% and 250% of the federal poverty guideline (Cal. Pub. Util. Code § 739.12(a)–(b)). Since January 1, 2025 there is no minimum household size (SB 1130). Because the income threshold is higher than CARE, FERA serves as a bridge program for families who earn too much to qualify for CARE but still face significant energy cost burdens.
Unlike CARE, FERA has no enrollment route through public-assistance programs. A household qualifies on its total gross annual income, which must fall between 200% and 250% of the federal poverty guideline for its household size.
Income Limits, June 1, 2026 – May 31, 2027
Total gross annual household income. CARE covers households up to the CARE limit; FERA covers households from one dollar above the CARE limit up to the FERA limit.
- 1–2 people: CARE up to $43,280; FERA $43,281 to $54,100
- 3 people: CARE up to $54,640; FERA $54,641 to $68,300
- 4 people: CARE up to $66,000; FERA $66,001 to $82,500
- 5 people: CARE up to $77,360; FERA $77,361 to $96,700
- 6 people: CARE up to $88,720; FERA $88,721 to $110,900
- 7 people: CARE up to $100,080; FERA $100,081 to $125,100
- 8 people: CARE up to $111,440; FERA $111,441 to $139,300
- Each additional person: add $11,360 to the CARE limit and $14,200 to the FERA limit
The CPUC may adjust these limits each year; these took effect June 1, 2026. Sources: the CPUC's CARE/FERA program page; PG&E Rule 19.1 and Schedule E-FERA; SDG&E Schedules E-CARE and FERA, each effective June 1, 2026.
The Operator's Legal Obligations
Cal. Civ. Code § 798.43.1 sets specific CARE obligations for every master-metered community, and Cal. Pub. Util. Code § 739.5(a) carries both CARE and FERA to a submetered resident by billing them as a direct customer. A household receives CARE or FERA, never both.
Annual Notice
On or before February 1 each year, the community's utility billing statements carry written notice about CARE: at a minimum, that CARE offers a discount on monthly gas or electric bills for qualifying low-income residents, and the serving utility's telephone number for CARE information and applications. The same notice is posted in a conspicuous place in the clubhouse, or, if there is no clubhouse, in a conspicuous public place in the community (§ 798.43.1(a)). Under § 798.14 as amended by AB 391 (effective January 1, 2026), the annual notices under §§ 798.15(c) and (i) and 798.43.1, including the CARE notice, may be combined and may also be delivered by email to a homeowner or resident who has given affirmative, written consent, obtained separately from any lease (§ 798.14(a), (c)); the posting is still required. The operator cannot assume that residents already know about CARE or that they will seek the information independently.
Application Assistance
Management may accept and help process residents' CARE applications, filling in the account and community information the utility needs and sending them on. It may not withhold from a resident who applies on their own any information the utility requires, including the utility account number (§ 798.43.1(b)). It does not determine eligibility — that is the utility's function.
100% Discount Passthrough
When a resident is enrolled in CARE or FERA, the full discount must be passed through on their utility bill. The operator cannot retain any portion of the discount for administrative costs, billing overhead, or any other purpose. The discount applied must match the utility's published CARE or FERA schedule. On the statement, CARE appears either as the itemized amount of the discount or as a notation that the resident is receiving it on the electric bill, the gas bill, or both (§ 798.43.1(c)); either is lawful.
Accurate Calculation
The discount must be calculated on the correct base amount using the correct percentage. What the discount applies to is set by each utility's CARE or FERA schedule: by statute, for the large electric utilities, the CARE discount is a reduction in the overall bill (Cal. Pub. Util. Code § 739.1(c)(3)); SCE's CARE schedule, for example, takes 32.5% off, exempts certain surcharges, and lowers the Base Services Charge. FERA is a discount on the bill calculated at the applicable rate (§ 739.12(b)). The pass-through follows the schedule, not a rule of thumb.
How Discount Passthrough Works on a Bill
The following example is illustrative only: the tier prices, the discount percentage and the charges it applies to all come from the utility's own CARE schedule. For simplicity it shows a line-item CARE discount of 35% on the usage charges only, with the fixed charge billed at the schedule's CARE tier; a real schedule generally applies its percentage to the whole bill, net of any charges the schedule exempts.
Correctly Applied CARE Discount
Consider a resident with 487 kWh of electric consumption in a billing period, billed under a tiered rate schedule:
- Tier 1 (baseline): 350 kWh × $0.26/kWh = $91.00
- Tier 2 (above baseline): 137 kWh × $0.37/kWh = $50.69
- Usage charges before discount: $141.69
- CARE discount (35% of $141.69): −$49.59
- Usage charges after CARE discount: $92.10
- Fixed charge: billed at the CARE tier of the schedule, shown on its own line
Showing each component — the tiered usage charges, the CARE discount as a clearly labeled line, the fixed charge at its CARE tier, and the net total — is the more transparent of the two lawful forms, and the easiest for a resident to verify.
Incorrectly Applied CARE Discount
Common errors in CARE discount application include:
- Wrong percentage: Applying a smaller discount than the utility's CARE schedule provides — the resident receives a discount, but not the full amount they are entitled to.
- Missing discount: The resident is CARE-enrolled but the bill shows no discount at all — the operator failed to track enrollment status or the billing system does not support CARE processing.
- Unmarked discount: The bill shows only a net charge, with neither the itemized discount nor a CARE notation — the statement does not give the notice § 798.43.1(c) requires, and the resident cannot tell the discount was applied.
- Stale rate: The utility updated its CARE discount percentage but the operator is still applying the old percentage — the discount amount is wrong.
Where Bills Commonly Go Wrong
Based on the requirements of Cal. Civ. Code § 798.43.1 and the practical realities of operating a manufactured housing community, these are common places a CARE/FERA passthrough goes wrong.
Failing to Provide Annual Notice
The February CARE notice is easy to overlook, especially for operators managing multiple properties. But it is a standalone obligation — even if an operator correctly passes through discounts for enrolled residents, skipping the notice means eligible residents who are not yet enrolled never learn about the program. The notice is still owed, however well active enrollments are handled.
Not Tracking Enrollment Status
Operators who do not maintain current CARE and FERA enrollment records cannot reliably apply discounts. Enrollment status changes — new residents may be eligible, existing enrollments may lapse, recertification may be required. Without active tracking, discounts are missed or applied to the wrong accounts.
A Partial Discount
A partial discount — less than the schedule provides — falls short of Cal. Civ. Code § 798.43.1(c), whatever the reason. The statute requires the full amount of the discount to pass through. There is no administrative fee exception.
Not Updating Discount Rates
When the utility updates its CARE or FERA discount percentages — which can happen when new tariff schedules take effect — operators must update their billing accordingly. Continuing to apply a previous discount rate after the utility has published a new one falls short of the full passthrough, even if the old rate was right when it applied.
Confusing CARE and FERA
CARE and FERA have different discount percentages, different eligibility criteria, and different utility coverage (FERA is electric only). Applying a CARE discount to a FERA-enrolled resident — or vice versa — results in an incorrect passthrough amount. A household receives CARE or FERA, never both, so billing systems must distinguish between the two programs.
The Sensitivity of CARE/FERA Data
CARE and FERA enrollment is inherently sensitive because it indicates that a resident's household meets income-based eligibility criteria. CARE enrollment signals that a household qualified on income or through a public assistance program. A resident enrolled in FERA has a household income between 200% and 250% of the federal poverty level. This is financial information that residents reasonably expect to remain private.
Privacy Practice
Operators should handle CARE and FERA enrollment data with heightened confidentiality:
- Enrollment status should not be disclosed to other residents, community staff who do not handle billing, or any third party without a legitimate billing-related need to know.
- Physical and digital records containing CARE/FERA enrollment information should be stored securely and accessible only to authorized billing personnel.
- If billing is handled by a third-party agent, the agent should maintain the same level of confidentiality for enrollment data.
- Bills showing CARE or FERA discounts should be delivered securely — not posted publicly or delivered in a manner that reveals enrollment status to other residents.
While the MRL does not include a dedicated CARE/FERA privacy provision, general privacy principles and the sensitive nature of income-related data make this a prudent practice — our recommendation, not a billing rule in the statute. For a broader view of compliance obligations including the core California billing rules, see our detailed rule-by-rule breakdown.