The amount you pay every month for electricity could change to a lower, more stable rate according to a proposal submitted by SDG&E to the California Public Utilities Commission (CPUC) in response to a new law that pushes power companies to make energy more affordable for struggling families.
The power going into your home is much cleaner than it was just 20 years ago, says Scott Crider, Senior Vice President of SDG&E, “But the fact is that in the next 20 years, you’ll see an even bigger change. We’re going to go to carbon neutrality by 2045,” he said, pointing to California’s plan that pushes all energy companies in the state to go greener.
Which comes at a price.
“As we go through this very unprecedented clean energy transition, we need to make sure that customers can afford it,” said Crider. He explained that a coalition of California energy companies came up with a way to help struggling families stay current with their energy bills. This in response to a new state mandate that aims to modernize energy pricing with a new fixed system.
“Really a fundamental change, a transformational change of how customers pay for electricity in the state,” said Crider.
What they are proposing to the CPUC doesn’t have to do with the rate you pay for electricity itself, but rather the cost of delivering it to your home. That cost will be based on the household income.
If approved, the four fixed fixed-price brackets for electric delivery will be:
- $24 - income less than ∼$28k/year
- $34 - ∼$28k/year - $69k/year
- $73 - ∼$69k/year - $180k/year
- $128 - ∼$180k/year or more
To lessen the burden on San Diego families, Crider said SDG&E proactively appeals to federal and state agencies.
“We’re advocating to bring federal budget dollars into San Diego to pay for critical electric infrastructure. We’re also advocating for legislation that’s being considered in California that would remove costs out of the bill, and that could reduce bills by up to 7%,” said Crider.
Edwar Lopez, Executive Director of Utility Consumers’ Action Network (UCAN) says they like what they’re hearing so far on the proposal.
“And bring affordability a little bit more to all customers but particularly lower-income customers,” he said adding that they’re part of the process to come up with a plan so they’ll be tracking the proposal as it makes its way through the CPUC.
If you have fallen behind on your energy bill SDG&E has a number of programs that could help you catch up.
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