FIX THE BILLS

ELECTRIC BILLS IN CALIFORNIA
ARE OUT OF CONTROL

To help address the ongoing affordability crisis in the Golden State, the California Public Utilities Commission is taking modest steps in the direction of rate reform. These proposals are intended to help create equity when it comes to paying for various environmental mandates that have been placed on the energy bill.

FIXED CHARGE

One proposal, the fixed charge, would restructure energy bills, separating out the costs of some of these mandates from the normal electric usage rates and provide a discount to customers enrolled in California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance Program (FERA) financial assistance programs.

Wealthy customers would pay slightly more than lower-income customers, but the total amounts collected by energy companies each month would remain the same.

ROOFTOP SOLAR REFORM

Another reform is working to curb the overly generous subsidies paid to rooftop solar customers. Even with the changes that took place last year, non-solar customers are still expected to pay roughly $6.5 billion in subsidies that will be enjoyed by solar customers.

Thanks to these overly generous subsidies, solar applications reached a record high in 2023 and publicly traded solar companies continued to enjoy multi-million-dollar profits, all on the backs of working class Californians.

Now, some Sacramento politicians are looking to roll back these modest gains to keep costs as low as possible for their wealthy urban constituents.

Rates Equity is Under Attack

Policymakers have been quick to add charges to electric bill, but are now working to roll back modest reforms that have the potential to lower energy bills for most customers.

In 2022, the Legislature approved a measure to make bills more equitable and create hundreds of dollars in annual savings for low-income customers. While this reform is widely supported by ratepayer advocates and the environmental community, a group of lawmakers is now working to roll back that progress to protect wealthy, suburban customers from paying their fair share.

Their bill, Assembly Bill 1999, is a direct attack on rates equity and would continue the trend of forcing middle and low-income households to foot the bill for California’s climate policies and wealthier homeowners’ solar subsidies.