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California Implements Fixed Utility Charge Amid Controversial Rate Restructure

New billing approach aims to balance infrastructure costs and clean energy goals but faces criticism over potential impact on low-income households.

  • California Public Utilities Commission introduces $24 monthly fixed charge for electricity customers of major investor-owned utilities.
  • New billing structure reduces per-kilowatt-hour rates by 8% to 18% but adds a fixed fee to cover infrastructure costs.
  • Proponents argue the change supports the state's clean energy transition and rate stability, while opponents worry about increased costs for low-energy users.
  • Legislation proposed to cap the fixed charge and require additional reporting on its impact is currently under debate.
  • Fixed charges will vary for low-income households, with fees set at $6 or $12 depending on qualification for state discount programs.
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