California Utility Companies Suggest Billing Customers Based on Income

Three California utility companies have suggested billing their customers based on how much income they earn. This proposal complies with the legislation approved by the state government of California in 2022.

Three California utility companies such as the San Diego Gas & Electric, Pacific Gas & Electric, and Southern California Edison have suggested implementing changes to their customers’ utility bills. These companies filed a joint proposal for a flat-rate charge that is based on income. This means that the companies’ customers may be charged based on how much income they earn.

According to ABC30 News, the proposal of the three California utility companies intends to divide the monthly utility bills into two: the fixed income rate and the reduced usage that depends on the customer’s consumption. With the proposal, households with low incomes can be charged for as low as $15 per month, while households that earn more than $180,000 per year can be charged an additional of up to $85 per month.

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California Utility Companies Complied

According to Sternfield, the proposal suggested by the three California utility companies is part of compliance with the legislation that was passed by the state government of California in 2022. The proposal may increase the utility bill, however, the actual electricity rate would decrease by around 33%.

This means that if customers could be able to reduce their electricity consumption, their utility bills would in turn decrease. Nonetheless, the California Public Utilities Commission would still have to finalize the authorization of the proposal by mid-2024. If passed, the fixed rate is expected to appear on utility bills as soon as 2025.

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