California lawmakers backpedal on new electricity rates rule based on customer income

https://www.kcra.com/article/california-backpedal-new-electricity-rates-
income-based/46586910

SACRAMENTO, Calif. —
A group of Democratic state lawmakers on Tuesday announced an effort to 
roll back a rule that requires the state's major utility companies to set 
all electricity and gas rates based on customer income instead of energy 
use.

That same group of lawmakers is part of the reason why the rule is in 
motion in the first place. California's Democratic-led Legislature passed 
Assembly Bill 205 in 2022, which among many things, directed the 
California Public Utilities Commission to authorize the income-based 
charges by July of this year. The purpose of the rule change was to lower 
the overall average monthly bills for low-income customers.

"AB 205 should have had a very robust conversation," said Assemblymember 
Jacqui Irwin, D-Thousand Oaks.

Irwin noted the legislation was part of a budget trailer bill, which is a 
mechanism the legislature and governor use to quickly pass new laws on a 
fast-tracked timeline with little to no public discussion. She believes 
having this be part of a huge trailer bill was not appropriate.

Video of AB 205's debate on the Assembly floor on June 29 of 2022 shows no 
mention of the rule, but lawmakers noted the bill was a last-minute push 
by Gov. Newsom's administration. "This is a crappy budget trailer bill 
that was dumped on us late Sunday," Democratic Assemblyman Al Muratsuchi 
said in the clip. "In the words of Marshawn Lynch, 'I'm only here so I 
don't get fined'." The Assembly went on to pass it 64-13 on a party line 
vote.

Tuesday's announcement included lawmakers that mostly represent coastal 
districts. They said they've heard repeatedly from constituents who are 
worried about increased costs and privacy issues.

Irwin on Tuesday filed a bill that repeals pieces of AB 205. The CPUC is 
still in the process of analyzing rate design proposals, which Irwin said 
could reach up to $125 a month for some customers.

Utilities already set discounted rates for lower-income Californians 
through the California Alternate Rates for Energy (CARE) program. Irwin 
said the bill would allow the CPUC to establish a fixed fee of $5 for 
those customers and $10 for other low-income customers not enrolled in the 
program.

"Quite frankly, we're upset," said Zach MacQuarrie, a spokesman for the 
Predictable Power Coalition, which supports AB 205 and what's known as the 
graduated income fixed charge rule. "These folks voted for the legislation 
and now they want to take this immediate financial relief away from these 
communities."

Terrie Prosper, a spokesman for the CPUC, said because customers can 
expect a flat rate from their utility companies, the "usage rate" is 
expected to go down. Prosper noted the implementation of AB 205 was a 
critical step toward California's climate goals because a lower usage rate 
will mean lower costs for consumers to charge an electric vehicle or run 
an electric heat pump, technologies he noted are needed to move away from 
the state's reliance on oil and gas.

"The Governor is aware that the Public Utilities Commission is working 
diligently with dozens of stakeholders in its public decision-making 
process, and he looks forward to seeing a Commission proposal that is 
consistent with AB 205 when it is released," said Alex Stack, a spokesman 
for Gov. Gavin Newsom's office. “California must combat climate change by 
rapidly expanding the use of clean electricity in our vehicles and 
buildings, while at the same time making it more affordable for low-income 
Californians.”

Republican Assemblyman Josh Hoover told KCRA 3 he has been considering 
filing a similar proposal to Irwin's but is worried hers does not go far 
enough to protect Californians from high costs.

"It still allows for increases based on inflation and things like that. 
Whether this is the perfect approach, I don't know yet," Hoover said. "I 
think action has to be taken and the question is, what is the best way to 
do that?"

Irwin said she's hoping to have an urgency clause added to the bill that 
would allow the repeal to go into effect immediately with the governor's 
approval. A hearing for the measure is not yet scheduled.


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