It’s no secret that we have some of the highest electric rates in the country. A proposal up for a vote this week is part of an effort for investor-owned utilities like SDG&E to make electricity more affordable, especially for lower-income families. A law passed back in 2022 ordered regulators to have a plan by July 2024.
Currently, utility companies include the cost of building and maintaining the grid in the usage rates they charge us. However, one plan that could lower consumers' prices is changing that to a fixed rate.
Last year, SDG&E proposed an income-based fixed rate. They submitted the plan to the California Public Utilities Commission (CPUC), which is now proposing your bill would have a stand-alone flat rate of $24.15. The CPUC said the move would save you about five to seven cents per kWh, but the rate will continue to vary throughout the day to encourage conservation.
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Under the proposal, families in the Family Electricity Rate Assistance (FERA) program will only pay a flat rate of $12 per month. Also, those enrolled in the California Alternate Rates for Energy (CARE) program will pay a flat rate of $6 per month.
NBC 7 Responds reached out to SDG&E. They are part of the Predictable Power Coalition, which sent us the following statement:
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“A fixed charge promotes more equity and provides bill assistance for disadvantaged and low-income Californians who are struggling the most. As California transitions to our clean energy future, it’s vital that we do not leave communities behind. The proposed decision is a step in the right direction, and we look forward to continuing the conversation.”
However, the California Senate Republican Caucus sent a letter to the CPUC this week urging them to reject the proposal. In their letter, they point out three concerns.
They believe the plan will cost consumers more in the end. They worry that the $24 fee could grow to as much as $100 over time, and believe it won’t encourage energy conservation.
If the proposal is approved during Thursday’s vote, the rate will not be implemented until late 2025 or early 2026.
