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Fixed Energy Fee Explodes in Controversy

STATE — Rage, anger and frustration broke on Thursday after the California Public Utilities Commission unanimously approved a controversial fixed charge based on income for residential electricity rates.

The commission approved a new monthly fixed charge of $24.15 for customers with the state’s three largest utility companies — San Diego Gas & Electric, Southern California Edison and Pacific Gas & Electric. Republicans in the state legislature immediately railed against the ruling saying it will further erode the middle and low-income classes, put more pressure on an already expensive state and ripped Gov. Gavin Newsom and Democrats for killing a bill to repeal the fixed charge.

However, CPUC President Alice Busching Reynolds said it will save low-income residents money. According to the CPUC, the electricity usage rate will be reduced by 5 to 7 cents per kilowatt hour for all residential customers. (Check out the fact sheet)

“It provides affordability for lower-income Californians and those living in other parts of the state most impacted by extreme weather,” she added.

Senate Minority Leader Brian Jones (R-San Diego) said the CPUC can increase the fixed charge at any time. He also railed against Newsom and Democrats for forcing another mandated fee to residents already struggling with high utility bills.

“It’s blatantly clear that Governor Newsom’s Public Utilities Commission is out of touch with the struggles of ordinary Californians,” Jones said in a statement. “Their rubber-stamp approval to add a new $24.15 per month electricity charge is unfair and unjust. Even worse, thanks to Democrat lawmakers, the Commission now has the power to jack up this fee whenever they please—$24 today could easily be $100 next year. The Newsom Administration should hang their heads in shame for imposing this heavy burden on already struggling Californians who are barely making ends meet. Now is not the time for more government-mandated fees!”

The $24.14 is for the households followed by charges of $12 or $6 for those enrolled in the Family Electric Rates Assistance (FERA) and California Alternate Rates for Energy (CARE) programs, respectively. Those in the FERA can have an income up to $49,720 and a limit of $39,440 for CARE customers.

Steve Puterski
Steve Puterski
Publisher, North County Pipeline
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