Power rates are currently calculated mostly based on how much power people use. The new proposal unveiled Wednesday would make a portion of power bills a fixed chargeIt's become a rite of summer in sunny California: When the temperature spikes, so do electricity bills, leaving some customers with monthly payments over $500.
To offset this new charge, the rate people pay for using power would go down. During peak hours when electricity is in the most demand — and the most expensive — rates for customers of the state's big three utilities would fall between 8% and 9.8%. That means the average customer in Fresno, where temperatures were at or above 100 F for 17 days last July, would save about $33 during the summer months, according to the California Public Utilities Commission.
“We need to prioritize driving down consumer’s overall bills, not redistributing the ever-increasing electric rates,” Irwin said. The Predictable Power Coalition, which includes the big three utilities, called the fixed rate “vital” and said the proposal “is a step in the right direction.” Some of the state’s most well-known consumer advocates, including The Utility Reform Network and the California Public Advocates Office, support the proposal because they say it would make utility bills more affordable.
Reynolds noted that California's big three utilities will still charge more for power during peak hours but that the fixed charge would make sure the increase is more evenly distributed among customers. She also noted the big three had proposed fixed rate charges of $51 and $73. The commission rejected those amounts.