California regulators on Thursday voted to make it cheaper for people to charge electric cars and cool their homes in the summer, a decision heralded as part of the state's transition to clean energy but derided by others who warn it will raise prices for people who don't use as much energy.
In exchange for the new charge, the price of electricity will drop by between 5 cents and 7 cents per kilowatt hour. One kilowatt hour is how much power it takes to use a 1,000-watt appliance - a coffee maker or vacuum cleaner, for instance - for one hour. For people who use a lot of energy each month, the proposal approved on Thursday will likely lower their monthly bills. People who own electric cars and have electrified their homes will save an average of between $28 and $44 per month, according to the commission. That's because the savings they get from the price drop on electricity will be more than the amount they pay for the new fixed charge.
State officials have urged people to conserve energy during peak hours, between 4 p.m. and 9 p.m. when energy from solar is less abundant. Opponents worry this proposal, by lowering the price for electricity, will discourage people from doing that. "The idea that this fixed charge proposal will undermine the motivation to conserve is, quite frankly, laughable," he said. "It's a simplistic way to view this decision, and we all know that our energy situation and rate design are anything but simple."
Most states already have fixed monthly charges on utility bills to pay for maintenance and infrastructure of the electric grid. But in California - where electric rates are among the highest in the nation - any move that could increase prices for anyone raises alarms among consumers and elected officials.