SAN DIEGO — Some Californians could see hundreds of dollars a year added on to their utility bills in the form of a 'fixed-rate' fee already approved by state lawmakers.
Now many of those same legislators are working to repeal this new charge, fearing that it could lead to unintended consequences. This proposed fixed-rate electricity charge, based on income, was approved by the state legislature in 2022 as a small part of a massive piece of legislation.
While it was mostly overlooked at the time, it is getting a lot of attention now that it's set to take effect later this year.
"We want Californians to know that we hear you and we agree with you," said Assemblymember Rebecca Bauer-Kahan (AD 16). "Utility rates here in California are too damn high!"
"Californians are fed up," added Assemblymember Marc Berman (AD 23). "My constituents are pissed off!"
Democrats in the state legislature are now fighting to repeal the legislation they originally passed two years earlier. The monthly fixed fee will be added to ratepayer's electric bills and based off their income.
"Our constituents have had enough and so have we," said Assemblymember Jacqui Irwin (AD 42), who authored this new legislation.
Supporters of this fixed charge point out it would help lower-income customers and would also reduce the average price per kilowatt-hour.
The state's utility commission, the CPUC, has until July first to authorize this new rate structure.
Here's one monthly structure proposal that has been suggested:
- $34 per month for households earning $28,000 to $69,000.
- $73 per month for those earning $69,000 to $180,000.
- $128 per month for those making above $180,000.
"This needs to be repealed because we are worried about the proposals that have come forward," said San Diego Assemblymember Chris Ward, a joint author of this new bill.
Ward said the fixed rate could add up to more than $1,500 annually for some. It could lead to unintended consequences beyond just the backs of the ratepayers.
"How would this impact of solar, which we support as a community?" Ward questioned. "What would this do to conservation behavior, or other efforts that we need to do to keep our grid reliable?"
Backers of this move to repeal the fixed rate point out there would be less of an incentive to conserve power since consumers would be charged regardless of their consumption.
It's a perspective many San Diegans share.
"If that was the case, then what's the point of turning off the lights when you leave the room?" said rate payer Sami Saffi.
"If I'm not using it, then why should I pay for it?," added San Diegan Meliza Trimidal.
Some said that the intent of helping lower-income Californians afford their utility bills is important, but this isn't the way to accomplish that.
"If they figured out a way to make it more affordable for everybody, then it would be different," Saffi said.
The proposed legislation to repeal this fixed-rate fee is an 'urgency bill,' meaning that, if ultimately passed by the Assembly and Senate, then signed by the Governor, it would take effect immediately.
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