California proposal would change how power bills are calculated, aiming to relieve summer spikes
A new proposal from California regulators would change how power companies calculate their customer's bills
SACRAMENTO, Calif. — It's become a rite of summer in sunny California: When the temperature spikes, so do electricity bills, leaving some customers with monthly payments over $500.
A big reason for that is the way California's largest power companies calculate rates. The more power you use, the more money you pay — not just for electricity, but also for things like maintaining the grid and reducing wildfire risk.
A proposal unveiled Wednesday by state regulators aims to change that. Instead of calculating bills based mostly on how much power people use, a portion would be a fixed charge. For most people, that charge would be $24.15 per month. People who are enrolled in low-income assistance programs or who live in deed-restricted affordable housing would pay less — either $6 or $12, depending on their situation.
To offset this new charge, the rate people pay for using power would go down. During peak hours when electricity is in the most demand — and the most expensive — rates for customers of the state's big three utilities would fall between 8% and 9.8%. That means the average customer in Fresno, where temperatures were at or above 100 F (37.8 C) for 17 days last July, would save about $33 during the summer months, according to the California Public Utilities Commission.
People who own electric cars and charge them at home would save about $25 per month on average, while people who have fully electrified their homes — including replacing gas-powered stoves — would save about $19 per month. Other customers whose bills are not impacted as much by the weather would likely see an increase.
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