SAN DIEGO — How we pay for electricity here in California could soon undergo some major changes.
Thursday morning, the California Public Utilities Commission will vote on a proposal to charge a fixed monthly fee totaling hundreds of dollars a year for most households.
This decision by the state's Public Utilities Commission would modify the way we pay for our electricity here in the Golden State by imposing a fixed fee every month.
While proponents of this move point out that electricity rates would go down, critics say that some Californians could still end up paying more for their power bill.
"This is going to to do nothing, nothing to address the energy bills in California," said Edward Lopez, executive director of Utility Consumers' Action Network (UCAN).
Under this proposal, most utility customers statewide would pay a monthly flat charge of $24.15, which adds up to nearly $300 a year.
Lower-income clients would pay $6 or $12 monthly, depending on their income bracket.
Electricity rates would decrease on average by about 15% or roughly five to seven cents per kilowatt hour.
"It's not clear who exactly would even benefit," Lopez said.
UCAN is part of a coalition which is now calling for the state to scrap this entire fixed-rate plan and start over.
"We just don't see that it really addresses the core problem, which is that energy and utility rates here in San Diego in particular and throughout the state are simply too high," he said. "They are growing too fast, outpacing inflation."
This fixed-rate fee would also apply to residential customers with rooftop solar.
Critics of the move say that since consumers would be charged regardless of their consumption, there would be less of an incentive to conserve power.
"Ironically, it might be the larger households that are using a lot more energy that potentially may see the savings," Lopez told CBS 8.
This proposed fixed-charge was approved by the state legislature back in 2022 as a small part of a massive piece of legislation.
The Governor's office continues to back this latest proposal, pointing out that $24.15 is nearly two thirds lower than what one utility company had previously proposed. It's 30% less than what some customers in states like Texas and Florida already pay.
Many consumer advocates, though, are not convinced. They also caution that under this legislation there is no cap established on this fixed rate.
"So quite frankly, it could continue to grow and grow in years and even if some household demographics that can realize savings,, there is nothing that is going to stop and perhaps see bills overall continue to climb," Lopez said.
Earlier this year, some Democrats in the state legislature were attempting to repeal this legislation to establish a fixed monthly rate. However, that assembly bill was put on hold a couple weeks ago and at this point will not be moving forward.
If the CPUC votes to approve this new fixed rate system at its meeting Thursday, it would most likely go into effect in the latter part of 2025.
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