California Utility Companies Make a New Proposal to Customers

Three major utility companies in California are looking to restructure customer billing, and part of that means customers could be charged based on how much money they make. 

Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric filed a joint proposal for a flat-rate charge based on income this week. 

The plan would break monthly bills into two parts: The fixed-income rate plus a reduced usage charge based on consumption. Under the proposal, it would cost as little as $15 a month for low-income households and up to $85 more per month for households making more than $180,000 a year. 

While the specific cost would go up, the electricity rate would decrease by a third. It means customers could control their bills somewhat – if they reduce electricity use. 

The income-based bill proposal is part of the companies’ compliance with legislation passed by the California state government last year requiring these utility plans. 

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