1. CPUC approved $24 monthly fixed charge on residential consumers from PG&E, SCE and SDG&E
2. The fixed charge re-arranges overall electricity costs, benefiting high energy users and increasing bills for low energy users
3. The fixed charge is said to accelerate California’s clean energy transition, but critics argue it may discourage electrification and hurt low-income households
The California Public Utilities Commission (CPUC) approved a $24 monthly fixed charge on residential consumers who receive electricity from PG&E, SCE, and SDG&E. The fixed charges cannot be avoided or reduced, but consumers on assistance programs would pay a lower tax. In exchange for the fixed charge, the per-kilowatt-hour rate consumers are charged for electricity they use would be reduced by 5 to 7 cents. However, the new fixed charge would still lead to overall electricity bill increases for many working and middle-class families.
The fixed charge redistributes costs, benefiting households with higher energy usage and larger incomes. Those with lower-than-average energy usage will see their bills increase by hundreds of dollars annually. Both the fixed charge and per-kilowatt rates are uncapped and could increase over time. The CPUC and big utilities argue that the fixed charge will help California transition to clean energy, but critics dispute this claim.
A bill to cap utility fixed charges at $10 monthly was recently denied, and legislators are working to protect low-energy users who are often low- and moderate-income. The Solar Energy Industries Association (SEIA) emphasizes the need to consider impacts on rooftop solar and storage adoption when setting fixed charges. SEIA continues to advocate for policies to reduce utility rates and promote electrification in California.