California utility bills will soon be based on your income
Power lines are shown in this undated photo. (Getty Images)
If you earn more, you pay more.
That’s the basic idea behind sweeping changes proposed by California’s three largest utilities that will affect your electric bill.
Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric submitted a joint proposal to the state’s Public Utilities Commission last week outlining the new rate structure. It follows last year’s adoption of Assembly Bill 205, which calls for a fixed interest rate and generally simpler bills.
Under the proposal:
- Households earn less than $28,000 a year would pay a fixed fee on $15 a month on their electric bills in the Edison and PG&E territories and $24 a month in the 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 that earn from $69,000 – $180,000 would pay $51 a month in Edison and PG&E territories and $73 a month in the SDG&E territory.
- Those with income over $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.
Southern California Edison says about 1.2 million of its lower-income customers will see their bills drop by 16-21%. Lines for recurring costs, such as maintenance and operation, will simply disappear.
“This law was intended to reduce the amount that residential customers pay per kilowatt-hour, while increasing bill transparency,” Kathleen Dunleavy, a spokeswoman for SCE, told KTLA Friday. “This will bring relief to millions of customers.”
Overall, prices will decrease by around 33% per kilowatt hour for all residential customers.
“We have listened and heard from our customers that fundamental changes are needed to provide relief,” SDG&E CEO Caroline Winn said in a statement. “When we put together the reform proposal, customers who live paycheck to paycheck, who struggle to pay for necessities like energy, housing and food, were foremost in our minds.”
State law requires the CPUC to adopt a new rate structure by July 1, 2024. Southern California Edison says the earliest customers will see the updated bills is 2025.
