California's three largest power companies have recently proposed to switch up the way that their customers are billed. According to KTLA, in an effort to simplify electric bills, Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric have discussed rolling out a fixed rate structure. Southern California Edison spokesperson Kathleen Dunleavy discussed the company's reason for wanting to adopt the new billing structure.
“That law was intended to lower the amount that residential customers pay … while increasing transparency with bills. This will provide relief to millions of customers.”
Essentially, those that earn more money will pay more. KTLA shared an example that compared the fixed rate that each household would have to pay based on how much money they take in per year. Households earning $69,000 would pay no more than "$20 a month in Edison territory, $34 a month in SDG&E territory and $30 a month in PG&E territory." A house right next door with an income over $180,000 would be required to pay "$85 a month in Edison territory, $128 a month in SDG&E territory and $92 a month in PG&E territory." SDG&E CEO Caroline Winn mentioned that this change will greatly aid those who live paycheck to paycheck.
“We have listened to and heard from our customers that fundamental change is needed to provide bill relief. When we were putting together the reform proposal, front and center in our mind were customers who live paycheck to paycheck, who struggle to pay for essentials such as energy, housing and food.”
If the required laws are passed to allow for the creation of fixed rate electric bills, customers of the three power companies can expect these changes to be reflected no sooner than 2025.