In 2022, the Governor and state leaders mandated the California Public Utilities Commission to implement a fixed charge to charge customers for the upkeep of the grid, while reducing costs for those who need it most.
“The fixed charge shall be established on an income-graduated basis with no fewer than three income thresholds so that a low-income ratepayer in each baseline territory would realize a lower average monthly bill without making any changes in usage.”
– Legislation signed by Gov. Gavin Newsom, June 30, 2022.
A fixed charge modernizes the way residential customers pay for electricity and the upkeep of the grid through a monthly fixed charge to provide more transparency, more predictability and to help low-income customers.
Despite the many benefits the fixed charge brings, such as providing more transparency, more predictability and more help to low-income customers, some are pushing misleading information. These are the facts:
FACT: The fixed charge will not require income verification – Existing programs like CARE and FERA already establish income eligibility through enrollment in programs like MediCal and SNAP or through a voluntary income self-attestation process. Customers who do not qualify for these programs will not be required to provide income verification.
FACT: The fixed charge is not an additional cost to electric bills – Costs to maintain the electric grid and fund public programs are already included as part of electric bills. The fixed charge changes the way electric bills are structured so customers pay a fixed charge for certain costs, such as infrastructure that connects all customers to the grid. This fixed charge will lower the energy rates that customers pay for costs that vary month-to-month usage, providing greater bill predictability.
FACT: The fixed charge will not increase profits for investor-owned utilities – The fixed charge will not change investor-owned utilities’ overall revenue or cost recovery and will not increase profits.
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