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Edison monthly bills could jump for many customers due to new state law

April 13, 2023

Customers for California’s three major power companies — including PG&E ratepayers — can expect to see some big changes in their monthly electricity bills in the coming years as compliance with a new state law begins to unfold.

PG&E, Southern California Edison and San Diego Gas & Electric, the three major California utilities whose services include electricity, have filed a joint proposal with the state Public Utilities Commission that sketches out proposed changes in monthly bills.

At present, those bills are primarily based on how much electricity and gas customers consume.

A new proposal would add a fixed monthly charge that would be based on the household income levels of the respective customers.

The tradeoff: The three utilities are proposing a reduction of 33% in electricity rates, which means it’s possible that segment of the bill could be less expensive.

Put another way, customers would be able to reduce a portion of their bill if they can control their electricity usage.

“This proposal aims to help lower bills for those who need it most and improves billing transparency and predictability for all customers,” said Marlene Santos, PG&E’s chief customer officer.

The primary effect could be to help reduce monthly bills for low-income customers, according to PG&E.

But the shift could mean jumps in monthly bills for some customers.

The changes would affect only those customers who receive electricity services from PG&E and its sibling power companies.

Here’s how the fixed charges would work in the PG&E service territory. The numbers are based on a four-person household:

Households earning less than $28,000 a year would pay a fixed charge of $15 a month on their electric bills.
Households with annual income from $28,000 to $69,000 would pay $30 a month.
Households earning from $69,000 to $180,000 would pay $51 a month.
Those with incomes above $180,000 would pay $92 a month.

“These are not new charges, but a restructuring of the components of providing and delivering power,” PG&E stated in a post in the Currents section of the utility’s website.

The monthly bills of the future would have two components: the fixed charge based on household income levels and the electricity charge at a reduced rate that would fluctuate based on monthly energy consumption.

PG&E says many customers would ultimately pay less for electricity — although the distinct possibility remains that an unknown and potentially significant number of more affluent customers might wind up with even higher electric bills.

“On average, low- and moderate-income customers would see lower bills,” PG&E stated in the Currents post. “Of those who have a bill increase, many would have a relatively small bill impact.”

It also appears that a formal effort will be made by state officials to confirm the household income declarations of utility ratepayers.

“The proposal recommends a qualified, independent state agency or third party be responsible for verifying customers’ total household incomes,” PG&E said in an emailed statement.

The state Public Utilities Commission will have to craft a final rate and billing structure for the three utilities. The PUC is due to make a final decision by July 2024.

Oakland-based PG&E hopes a new structure for calculating monthly electricity bills will help customers navigate a fast-changing energy landscape in California.

Utility customers statewide could feel a brutal financial squeeze as a result of California’s push to transition to a green energy state that depends more on electricity and less on natural gas. Plus, the state intends to phase out gasoline-powered vehicles in a shift to electric cars.

The big problem with PG&E bills, however, is that there’s no limit to how quickly they can rise, in the view of Mark Toney, executive director of The Utility Reform Network, a consumer group that’s also known as TURN.

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“The problem is the sky’s the limit for how much PG&E can request for electricity and gas rates, and the sky’s the limit for what the PUC can approve,” Toney said. “We need to limit rate increases to the annual consumer price index.”

Orange County Register

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Edison monthly bills could jump for many customers due to new state law

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