California will soon become the first state to determine residents’ electricity fees based on their income as part of a new effort to spur households toward full electrification and bring down the state’s soaring electricity costs for low-income Californians.
Electricity bills are made up of fixed costs as well as fees that vary based on the amount of electricity residents use. Last year, the state passed a law giving the California public utilities commission a 1 July 2024 deadline to determine a fixed charge for household electric bills based on people’s income.
The new income-based electricity bills could hit residents’ mailboxes as soon as 2025. Based on proposals currently under consideration, residents who make more than $180,000 a year could pay about $500 more annually on their electricity bills, while Californians who make less than $28,000 annually could save up to $300 a year. The law is part of the state’s answer of how to equitably transition away from carbon as an energy source.
But state officials are already facing backlash from higher-income residents who don’t want to see their bills increase. The proposals have so far received more than 250 public with large number opposing the law. READ MORE...
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