California utilities will shift billing to a fixed fee starting in 2025. Most Californians won’t see much change, or will have a lower bill. State u

Californians will see lower electricity rates and a new fee that won’t vary with power use

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2024-05-09 20:30:06

California utilities will shift billing to a fixed fee starting in 2025. Most Californians won’t see much change, or will have a lower bill.

State utility regulators decided today to let California’s largest power providers stick their customers with a new monthly flat fee in exchange for a reduction in the overall price of electricity, a controversial change to the way that millions of households pay their utility bills with weighty implications for state climate change policy.

Under the new policy, utilities will be required to reduce the price households pay for the electricity they use every time they charge a phone or run an air conditioner. That rate cut will vary from between 8% and 18%, depending on the utility, season and time of day, according to the commission’s analysis.

To make up for the lost revenue, regulators have introduced the concept of a “fixed charge,” a break from California electric billing tradition. For decades electric bills from Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric have been the “pay as you go” variety, with households only paying for the electricity they use.