In a significant legal move, Los Angeles County has filed a lawsuit against Southern California Edison (SCE), alleging that SCE’s equipment caused the Eaton Fire, requiring the County to incur massive costs responding to the fire and its aftermath. Eaton Fire, which has caused extensive damage and disruption throughout the region. This lawsuit aims to recover costs associated with the fire's aftermath and highlights ongoing concerns regarding the impact of SCE's operations on the local community. 

California Homeowners Face Rising Electricity Costs as SCE Faces New Lawsuit Over Eaton Fire

This lawsuit follows a growing pattern of litigation against California utilities, as homeowners continue to experience soaring electricity rates despite frequent public safety power shutoffs that have left many without power for days (Los Angeles County, 2025).

Rising Utility Costs and Frequent Shutoffs Leave Homeowners Frustrated

The Eaton Fire lawsuit comes at a time when California residents are grappling with escalating electricity costs. Earlier this year, the California Public Utilities Commission (CPUC) approved a plan for SCE to pass $1.6 billion in wildfire-related costs from the Thomas Fire to its customers (My Solar Solutions, 2025a). The Thomas Fire, one of the largest in state history, was determined to have been sparked by SCE’s electrical infrastructure (Ventura County Fire Department, 2025). These wildfire liabilities contribute to a perpetual cycle of rate hikes, leaving homeowners paying more for electricity while receiving less reliable service due to power shutoffs aimed at wildfire prevention.

How Lawsuits Impact Homeowners' Electric Bills

Utility rate increases linked to wildfire costs continue to outpace inflation, with a new report showing that California residents may face an additional $27 billion in wildfire-related fees over the coming years (My Solar Solutions, 2025b). The Senate Bill 695 Report further indicates that electricity rate increases in California will likely surpass inflation through 2027, adding financial strain to households already burdened by high living costs (California Public Utilities Commission, 2024).

California homeowners already pay some of the highest electricity rates in the nation, contributing to the state’s affordability crisis. According to the U.S. Energy Information Administration (EIA), one in three low-income families serviced by these utilities fell behind on their electricity bills in the past year (U.S. Energy Information Administration, 2025). These steady rate increases make basic necessities even more difficult to afford for many Californians.

The True Cost of Even a Small Rate Increase

Even seemingly small increases in electricity rates have a significant impact on household budgets. Consider the following example:

• In 2023, a homeowner using 10,000 kWh per year at a rate of $0.30/kWh would have paid $3,000 annually ($250/month).

• In 2024, with rates rising to $0.40/kWh, the same household would pay $4,000 annually ($333/month), an $83 per month increase—despite experiencing more frequent public safety power shutoffs.

Lower Your Electric Bills with Solar

With electricity rates continuing to climb, solar energy presents a practical solution for homeowners looking to reduce their dependence on SCE and other investor-owned utilities. California offers various incentives and tax credits to help offset the cost of installing solar and battery backup systems. Programs like the California Solar Initiative provide rebates for solar installations, while the Investment Tax Credit (ITC) allows homeowners to deduct a portion of their solar system costs from their federal taxes.

Additionally, the Self-Generation Incentive Program (SGIP) provides rebates for battery storage systems, enabling homeowners to maintain power during outages and lower their overall electricity costs.

For those looking to make the switch to solar, My Solar Solutions connects homeowners with trusted solar contractors and financing options, ensuring they receive top-tier installations and maximum financial benefits. By investing in solar, residents can protect themselves from ongoing utility rate hikes, achieve energy independence, and contribute to a more sustainable California.

References

• California Public Utilities Commission. (2024). Senate Bill 695 Report. Retrieved from https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/office-of-governmental-affairs-division/reports/2024/2024-sb-695-report.pdf#page=56

• Los Angeles County. (2025, March 5). LA County sues Edison over Eaton Fire, seeking to recover costs and damages due to widespread devastation. Los Angeles County. Retrieved from https://lacounty.gov/2025/03/05/la-county-sues-edison-over-eaton-fire-seeking-to-recover-costs-and-damages-due-to-widespread-devastation/

• My Solar Solutions. (2025a, March 5). SoCal Edison utility rates to increase after CPUC approves SCE plan to pass $1.6 billion in Thomas Fire costs to their customers. Retrieved from https://news.mysolarsolutions.co/news/b/so-cal-edison-utility-rates-to-increase-after-cpuc-approves-sce-plan-to-pass-16-billion-in-thomas-fire-costs-to-their-customers-to-their-customers

• My Solar Solutions. (2025b, March 5). New report shows utility rates in California are set to outpace inflation through 2027 as residents face $27 billion in wildfire fees. Retrieved from https://news.mysolarsolutions.co/news/b/new-report-shows-utility-rates-in-california-are-set-to-outpace-inflation-through-2027-as-residents-face-27-billion-in-wildfire-fees

• U.S. Energy Information Administration. (2025). Electricity data monthly: Average retail price of electricity to residential sector by state. Retrieved from https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a

• Ventura County Fire Department. (2025). VCFD determines cause of the Thomas Fire. Retrieved from https://vcfd.org/news/vcfd-determines-cause-of-the-thomas-fire/