State utility bills may see a change with a fixed-rate based on income

Three major state utility companies are proposing a new way to charge their residential customers, and part of billing for electricity would be based on income.

A new state law requires utility companies in California to come up with a fixed-rate plan to help stabilize rates and make bills more affordable.

PG&E, Southern California Edison and San Diego Gas & Electric filed a joint proposal with the state Public Utilities Commission seeking to add a fixed monthly charge for services, based on household income levels.

This fixed-rate plan would reduce monthly bills for low-income customers and if electricity usage is controlled, bills would also be lowered. It would cost as little as $15 a month for low-income households and up to $85 more per month for households making more than $180,000 a year.

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

Details of the proposal are as follows:

• Households earning less than $28,000 a year would pay a fixed charge of $15 a month on their electric bills in Edison and PG&E territories and $24 a month in SDG&E territory.
• Households with annual income from $28,000 to $69,000 would pay $20 a month in Edison territory, $34 a month in SDG&E territory and $30 a month in PG&E territory.
• Households earning from $69,000 to $180,000 would pay $51 a month in Edison and PG&E territories and $73 a month in SDG&E territory.
• Those with incomes above $180,000 would pay $85 a month in Edison territory, $128 a month in SDG&E territory and $92 a month in PG&E territory.