California Power Companies Propose Fixed-Rate Bill Based on Income, Not Usage

California electric companies proposed fixed-rate bills based on income.

Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric proposed a plan to charged customers based on income, not usage.

This is based on a new assembly bill that requires ‘simpler’ electricity bills.

Customers will see the new changes starting in 2025.

KTLA reported:

Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric submitted a joint proposal to the state’s Public Utilities Commission last week that outlines the new rate structure. It follows last year’s passage of Assembly Bill 205 which requires a fixed rate and generally simpler bills.

Under the proposal:

• Households earning less than $28,000 a year would pay a fixed charge of $15 a month on their electric bills in Edison and PG&E territories and $24 a month in SDG&E territory.
• Households with annual income from $28,000 – $69,000 would pay $20 a month in Edison territory, $34 a month in SDG&E territory and $30 a month in PG&E territory.
• Households earning from $69,000 – $180,000 would pay $51 a month in Edison and PG&E territories and $73 a month in SDG&E territory.
• Those with incomes above $180,000 would pay $85 a month in Edison territory, $128 a month in SDG&E territory and $92 a month in PG&E territory.

“That law was intended to lower the amount that residential customers pay per kilowatt hour while increasing transparency with bills,” Kathleen Dunleavy, a spokesperson for Southern California Edison told KTLA on Friday. “This will provide relief to millions of customers.”

SCE says approximately 1.2 million of its lower-income customers will see their bills drop by 16%-21%.

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