Three major California utility companies proposed to restructure how it charges for electricity and charge customers a fixed fee based on their income level.
Southern California Edison (SCE), Pacific Gas & Electric (PG&E), and San Diego Gas & Electric (SDG&E) filed a joint proposal for a two-part monthly bill of a fixed rate based on income and a reduced usage charge based on consumption.
The proposal is in response to AB 205, a wide ranging energy bill that requires utility companies to established fixed charges on an income-graduated basis. (California Energy Bill Expedites Green Energy Project Approvals)
The fixed charge based on income is intended to reduce electricity rates for lower income residents. Customers would be able to reduce the variable portion of the bill by reducing their energy usage.
The joint proposal structures the rates on the following:
Income of less than $28,000: $15 a month for SCE and PG&E and $24 a month for SDG&E territory.
Income of $28,000 to $69,000: $20 a month for SCE, $34 a month for SDG&E, and $30 a month for PG&E.
Income of $69,000 to $180,000: $51 a month for SCE and PG&E, $73 a month for SDG&E.
Income of more than $180,000: $85 a month for SCE, $128 a month for SDG&E, and $92 a month for PG&E.
PG&E stated that the proposal will help meet the state’s climate and energy policies by “lowering average per-kilowatt electric rates for all customers, while also stabilizing investments in the electric grid needed to electrify our state’s vehicle fleet and our homes and appliances.”
The California Public Utilities Commission (CPUC) will make a final decision on the rates by mid-2024 and fully implement the rates in 2025.