The California Public Utilities Commission will vote on whether to let the state’s big investor-owned utilities — including Pacific Gas & Electric — add a fixed charge to people’s power bills each month. For most people, the charge would be $24.15 per month and would pay for such things as installing and maintaining the equipment necessary to transmit electricity to homes.
For people who use a lot of energy each month, this could could lower their monthly bills. People who live in Fresno — where temperatures can often exceed 100 degrees Fahrenheit — would save about $33 running their air conditioners during the summer, according to the commission. That’s because the savings they would get from the price drop on electricity would be more than the amount they pay for the new fixed charge.
It would also benefit people who own electric cars and use other electric appliances, such as heat pumps. They would save an average of between $28 and $44 per month, according to the commission. In 2022, California accounted for 37% of the nation’s light-duty electric vehicles, or about six times more than Florida, the state in second place, according to the U.S. Energy Information Administration.
For people who don’t use as much energy, the new fixed charge could increase their bill each month. This includes people who live in smaller apartments or who live in cooler areas and don’t use air conditioning as much. That’s because for them, the decrease in the price of electricity would not be enough to offset the amount of the new monthly charge.Opponents argue it would act as a disincentive to conserve energy, something California has been urging people to do.
A group of 18 members of Congress from California have called on the commission to keep the rate low, noting the national average for fixed charges on utility bills is $11. Some Democrats and Republicans in the state Legislature have backed a bill that would cap the charge at $10 per month.