Edison Pitches New Bills Based On Income: See Expected Fees In SoCal

LOS ANGELES — Some Southern California residents may be paying a little more for electricity in the coming years under a proposal that would require households to report their incomes and pay a fixed rate based on how much they earn.

The plan from PG&E, Southern California Edison and San Diego Gas & Electric sits before the state Public Utilities Commission, which has until the middle of next year to hammer out the details of the significant overhaul.

The move follows the passage of Assembly Bill 205, signed into law by Gov. Gavin Newsom last summer, which expanded the California Energy Commission's jurisdiction and mandated that the three utilities finalize a new fixed-rate structure to be approved by July 2024.

According to The Mercury News, the proposal would restructure the current system, where customers are charged mainly on their use, tacking on new income-based fees, while reducing baseline electricity costs by 33 percent.

PG&E argues the proposal will actually lower bills for some and make charges more stable between months. A spokesperson for Edison reiterated that the move was "simply a restructuring of how we bill customers," rather than an added charge, and would not change overall revenue.

As KTLA reports, households with annual incomes between $28,000 and $69,000 would see a flat $20 fee on Southern California Edison bills, a $30 fee from PG&E, or a $34 fee from San Diego Gas and Electric.

Households earning between $69,000 and $180,000 would shell out another $51 monthly in Edison and PG&E regions, or $73 monthly for San Diego Gas and Electric's grid. The highest incomes would pay between $85 and $128 in monthly fees. Officials tell commissioners the charges will help cover the costs of building and maintaining electricity infrastructure and help provide financial relief for low-income customers.

As a trade-off, San Diego Gas & Electric would slash rates by 42 percent, and Southern California Edison would cut rates by 33 percent for all residential customers.

According to The Mercury News, PG&E expects many customers will end up with lower bills, and those who will pay more will only see a "relatively small bill impact." KTLA reports a third party would be tasked with verifying each customer's income, which would not be stored at the utilities.

If commissioners approve the overhaul by next summer, Californians can expect to see the change-up by 2025.