Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric submitted a joint proposal to the state’s Public Utilities Commission last week that outlines the new rate structure that involves income-based utility billing across California.
Currently, Utility bills are based on consumption. However, the utility companies are now proposing billing that should be determined by how much you make, so that higher-income earners pay for more than they use, subsidizing the rates for lower income customers.
According to the proposal:
- Households with annual income from $28,000 – $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 – $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.
The California Public Utilities Commission needs to approve the proposal and make a final decision by mid-2024. The fixed-rate could start showing up on bills as soon as 2025.