California utility companies propose charging customers based on how much money they make

Friday, April 14, 2023
Three major utility companies in California are looking to restructure customer billing, and part of that means customers could be charged based on how much money they make.

Southern California Edison, Pacific Gas & Electric and San Diego Gas & Electric filed a joint proposal this week for a flat-rate charge based on income.
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The plan would break monthly bills in two parts: The fixed-income rate, plus a reduced usage charge based on consumption.

Under the proposal, it would cost as little as $15 a month for low-income households and up to $85 more per month for households making more than $180,000 a year.

While that specific cost would go up, the actual electricity rate would go down by a third. It means customers could control their bill somewhat - if they're able to reduce electricity use.

The income-based bill proposal is part of the companies' compliance with legislation passed by the California state government last year requiring these types of plans for utilities.
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The California Public Utilities Commission would have to approve the proposal and make a final decision by mid-2024. The fixed rate could start showing up on bills as soon as 2025.

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