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Proposed Changes to State Utility Bills: Fixed-Rate Based On Income

April 18, 2023 | By Kali Girl

Three of California’s largest utility companies are pushing for a new approach to billing their residential customers, with a portion of the electricity charges based on income, reports CBS.

Under a new state law mandating a fixed-rate plan to even out costs and make bills more affordable, PG&E, Southern California Edison, and San Diego Gas & Electric have submitted a joint proposal to the California Public Utilities Commission.

The plan would include a fixed monthly service fee, calculated according to the customer’s household income level.

Details of the proposal are as follows:

Households earning less than $28,000 a year would pay between $15 and $24 a month.

Households with annual income from $28,000 to $69,000 would pay between $20 and $34 a month.

Households earning from $69,000 to $180,000 would pay between $51 and $73 a month.

Those with incomes above $180,000 would pay between $85 and $128 a month.

The proposal also includes measures to decrease monthly bills for low-income consumers and further reductions for those who control their electricity usage. This innovative fixed-rate plan could significantly benefit Californians struggling to pay their utility bills.

The California Public Utilities Commission would have to approve the proposal and make a final decision by mid-2024. If approved, changes to bills could be seen as soon as 2025.

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