The California Public Utilities Commission (CPUC) has approved a new monthly fee of $24 that will be added to the electric bills of California residents starting in May. This fee will affect everyone except those who get their power from the Los Angeles Department of Water and Power (LADWP). Despite the CPUC’s claims that the fee will be offset by a decrease in electricity rates, many residents have expressed opposition to the upcoming price hike, as California already has some of the highest utility rates in the country.
The Stop the Big Utility Tax Coalition, made up of 240 community organizations, believes that the added fee will not be offset by the reduction in electricity rates as claimed by the CPUC. They argue that even low-income residents who use very little electricity will see their bills increase due to the $24 monthly fee. The coalition is pushing for a new law, AB 1999, to prevent CPUC from implementing this extra charge on California homeowners and renters, stating that the fee would bring rates to double the national average.
The new fee is expected to increase bills between $64 and $225 for Californians living in apartments and duplexes, while those in larger homes could see significant decreases in their bills due to the reduction in electricity rates based on kilowatt usage. Critics argue that the fee disproportionately affects lower-usage consumers, such as those living in small homes and multi-family housing. Finance experts warn that the new fee undermines efforts to promote energy conservation, as high-energy usage customers are the ones who will see savings under the new rate.
While some finance experts believe the new fee could make electricity more affordable for households with higher usage, others warn that it may still hit the most vulnerable residents the hardest. Representatives Ted Lieu, Brad Sherman, and Katie Porter have expressed concerns about the implications of the new rates on Californian residents, questioning whether imposing a fixed monthly charge regardless of electricity usage is the best approach to keeping costs down and meeting climate goals. AB 1999, a new law aimed at preventing CPUC from adding the extra charge, is set to be discussed in the Assembly Utilities and Energy Committee before the fee goes into effect in May.
