California Regulators Approve Adding Fixed Charge of Up to $24 to Utility Bills

Source: KQED  |  By Alix Soliman, Guy Marzorati, and Kevin Stark

Starting late next year, most California residents will see a new fixed charge of up to $24.15 on their monthly electric bill. In exchange for the new charge, the price of electricity will drop by between 5 cents and 7 cents per kilowatt hour.

Right now, in California, if you use a lot of electricity, you pay more. If you live an energy-efficient lifestyle, you pay less. Sylvie Ashford, an energy analyst for The Utility Reform Network, or TURN, said that won’t change. The group supports the new fixed rate, which Ashford said will incentivize people to convert to clean energy. “Consumers report one of the biggest barriers to buying electric vehicles and electric heat pumps to be the high and rising cost of electricity,” Ashford said. “When it becomes 8% to 10% cheaper on each kilowatt hour, your operating costs on your electric vehicle or your electric heat pump become that much more competitive with polluting gas alternatives.” Ashford said that while fixed rates are a good first step, the state must do more to address California’s skyrocketing electricity fees, like keeping utility revenue requirements and shareholder profits in check.