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California’s big utilities promise that a proposed change in customer energy bills would help low-income families. But now Democratic lawmakers are joining Republicans in saying that the move is unfair to their constituents and will set back energy conservation.
The debate centers on “fixed charges” — set fees included in your monthly electric bills that are added on top of what you’re charged based on usage. These fees go toward operating costs for the state’s electric grid.
In 2022, Gov. Gavin Newsom signed a comprehensive energy bill , which included a provision requiring the California Public Utilities Commission to hammer out new fixed charges, ideally in a way where lower-income households pay less than higher-income ones.
Last April, Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric proposed an income-based pricing structure for fixed charges that they estimated would save some of their lowest-income customers as much as 21% on average.