Is this a way to limit high CA electric bills?

 LYNN LA • JULY 20, 2023

With temperatures soaring and air conditioners working overtime, Californians’ electricity bills are peaking as well. Will a contentious new rate proposal help families, especially those living paycheck to paycheck?

That’s the big question explored by Wendy Fry of CalMatters’ California Divide team. Last year, the Legislature and Gov. Gavin Newsom passed an energy bill requiring the state’s utilities commission to establish an income-based fixed monthly fee.

The state’s three largest electric utility companies — Southern California Edison, Pacific Gas and Electric and San Diego Gas & Electric — have suggested a plan that they say would save the lowest income customers about $300 per year on their electric bill. But under the same price restructuring, the companies estimate that households earning more than $180,000 a year would pay an average of $500 more annually.

Critics of the proposal, who include some state Republican lawmakers, argue that the plan would actually cost more for middle- and low-income customers, and it would reduce incentives for some customers to conserve electricity. When it comes to verifying incomes, opponents have also raised concerns over the state’s ability to keep personal data secure and private.

Supporters of the plan say the current billing system is unjust and regressive, since low-income customers spend a higher share of their income on electricity. For the most part, Democratic legislators who passed 2022’s energy bill have not spoken about the proposed changes.

The California Public Utilities Commission is expected to decide on the changes by July 1, 2024. According to one administrative judge in the proceedings, the earliest the change could take place is the end of 2026. In the meantime, the public can submit comments or attend a commission meeting.

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