Proposal before the California Public Utilities Commission would lower electricity rates — but customers would also pay a flat, monthly charge each month
PG&E crews work to restore power along Black Road in Los Gatos, Calif., Thursday, March 2, 2023, where more than 200 customers have remain without power. The California Public Utilities Commission will soon vote on one of the most contentious pieces of legislation that recently passed through the state legislature — Assembly Bill 205, which lowers rates but also establishes a monthly fee on residential electricity bills paid by customers of the state’s investor-owned utilities.
AB 205 passed through both chambers late in the 2022 session under what could be described as murky circumstances, at best. Signed into law by Gov.
The thinking goes that the rate cut will encourage all utility customers regardless of income to adopt electrification measures in their homes. That includes buying electric vehicles and replacing their natural gas appliances with electric appliances, such as heat pumps. California has set a goal to derive 100 percent of its electricity from carbon-free sources by 2045.
Under CPUC’s proposed decision, residential customers would pay $24.15 per month. Customers enrolled in CARE would pay $6 each month while FERA customers would pay $12.08. The commission insists the new billing structureThe $24.15 monthly fee is much lower than proposals the big investor-owned utilities suggested to the CPUC — SDG&E initially called for monthly charges.
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