The California Public Utilities Fee (CPUC) voted Might 9 to approve a controversial $24 month-to-month mounted cost on residential customers who get their electrical energy from PG&E, SCE and SDG&E.
The CPUC’s proposed choice recommending a $24 mounted cost for many households was launched earlier this yr. Underneath the proposed choice, customers who’re on California Alternate Charges for Power (CARE) or Household Electrical Fee Help Program (FERA) would pay a decrease tax ranging between $6 and $12 a month respectively. The mounted prices can’t be averted or lowered.
In change for the mounted cost, the per-kilowatt-hour fee customers are charged for the electrical energy they use would get a one-time discount of 5 to 7 cents. Nevertheless, the brand new mounted cost can be so excessive that general electrical energy payments would nonetheless enhance on 4 million of working and center class households.
The mounted cost primarily re-arranges the general prices of electrical energy payments, selecting winners and losers alongside the way in which based mostly on how a lot electrical energy they use, in keeping with an evaluation by Flagstaff Analysis.
Households with increased vitality utilization, typically these with increased incomes and residing in giant houses, can count on to see a lower of their general electrical energy payments. The electrical energy payments for households close to the statewide common within the vitality utilization are anticipated to remain about the identical. Households that use lower than the statewide common — completely round 20% of California households — will see their electrical energy payments enhance by a whole bunch of {dollars} a yr.
Each the mounted cost and per kilowatt charges are uncapped and will enhance over time. PG&E, for instance, elevated their charges by 13% this yr alone. Language referring to the mounted cost as a “part one” within the proposed choice makes it clear the $24 quantity represents a ground on the cost, not a ceiling. Utilities initially proposed mounted prices as excessive as $70 a month.
The CPUC and large utilities say the month-to-month mounted cost will speed up California’s clear vitality transition, however in keeping with the Cease the Massive Utility Tax coalition, there’s zero proof it’ll encourage extra folks to go electrical. With a $24 mounted cost, it’s nonetheless cheaper for folks to stay with their fuel home equipment, regardless of the discount in per kilowatt charges.
A invoice to cap utility mounted prices at $10 a month-to-month — A.B 1999 (Irwin) — was just lately denied a committee vote regardless of having almost two dozen co-authors. Legislators proceed to push for legislative options to guard low vitality customers who are typically low- and moderate-income.
“Whereas the ultimate prices are decrease than what investor-owned utilities needed, these are nonetheless new prices popping out of the pockets of California households which can be already battling the excessive price of residing within the state,” stated Stephanie Doyle, California state affairs director for SEIA, in a press assertion. “Any future adjustments to the mounted prices should totally take into account the affect to rooftop photo voltaic and storage adoption and electrification measures which can be important to assembly the state’s local weather targets. It’s clear that there are higher methods to cut back California’s extraordinarily excessive utility charges and encourage electrification, and SEIA will proceed to push for these insurance policies going ahead.”
Information merchandise from the Cease the Massive Utility Tax coalition
