California utility regulators on Thursday changed how most residents pay their energy bills by adding a new fixed monthly fee and lowering the rate applicable to energy usage. Officials said the transition would lower monthly bills for millions of residents and encourage the use of electric vehicles and home appliances that run on electricity rather than fossil fuels.
The California Public Utilities Commission's decision applies to rates charged by investor-owned utilities that serve about 70 percent of the state. Starting next year, most customers of these companies will have to pay a monthly fee of $24.15. Low-income customers will pay between $6 and $12 a month.
The regulator said the revenue from the fixed rate would be combined with a roughly 20% reduction in rates assessed by how many kilowatts of energy a household or business uses per hour. (The average American household uses about 1,000 kilowatt-hours per month.) Home electricity costs in California averaged 31.2 cents per kilowatt-hour as of February, second only to Hawaii's about 44 cents. It is said to be the highest in the United States. Federal Energy Information Administration. The national average in February was 16.1 cents.
Some energy experts say California's high energy usage rates are deterring some people from purchasing electric vehicles, heat pumps and induction stoves to replace cars and appliances that run on gasoline or natural gas. They argue that it is highly possible.
“This new rate structure will improve affordability for low-income customers and those most affected by the heatwaves of climate change, while also supporting decarbonization,” said Public Utilities Commission Chair Alice Reynolds. “We can further advance our path towards the future of the world.”
Power companies across the country have long promoted the introduction of fixed tariffs to cover the costs of maintaining and improving power grid equipment such as transmission lines and substations. These improvements have become more important in recent years as storms and heat waves strain power grids and people and businesses use more electricity to power electric cars, heat pumps and data centers. I am.
Other states have already introduced fixed charges to cover the cost of utilities. But regulators in some areas are trying to lower these rates because they could prevent people from using energy more efficiently. It could also prevent property owners from installing solar panels on their roofs. That's because a portion of your bill remains the same regardless of energy use or production, so you won't save much.
“Based on decades of experience and research, it is widely recognized that fixed rates increase costs for Californians who use the least energy and reward Californians who use the most.” said Edson Perez, California policy leader for Advanced Energy United. A group whose members include power generation companies, solar panel installation companies, and businesses that use electricity. “That means less solar energy and less home batteries. And that means fewer smart, flexible devices, from thermostats to EV chargers, that can help the grid when it's needed most. .”