PG&E customers — and those of other investor owned utilities — may pay a flat rate of $24.15 a month for fixed electricity costs.

And, at the same time, it is projected to reduce the cost of electricity by 5 to 7 cents per kilowatt hour.

That’s the projected bottom line of a California Public Utilities Commission (CPUC) proposal unveiled Wednesday to comply with Assembly Bill 205.

That bill requires the CPUC to reduce electricity bills for lower income Californians and those living in parts of the state most impacted by extreme weather, while also advancing the state’s clean energy goals.

It basically shifts the cost of power from those customers the California Legislature wants to help to others which means middle income households and higher as well as businesses.

Currently, all customers already pay for infrastructure  maintaining the electric grid through their electricity bills.

It is factored into the price you pay for the electricity you use.

Under this proposal, utilities will move these existing fixed costs — like the costs of maintaining power lines and equipment — into a separate “Flat Rate” line item on every customer’s bill.

The usage rate would continue to vary through the day in a bid to encourage conservation.

The CPUC projects an average Fresno customer — just like those in Manteca, Ripon, and Lathrop that make extensive of air conditioning to weather the valley heat – will save $33 over the course of summer months.

A CPUC press releases states “this proposed reallocation of the way costs are billed means that the price for a unit of electricity will be lower for all customers, making it more affordable for everyone to electrify homes and vehicles, regardless of income or location.”

 As presented, the CPUC stresses it doesn’t generate new profit for utilities—it simply reallocates how existing costs are shared among customers.

What the CPUC doesn’t point out in their press release that in order to make that happen, then the cost many PG&E customers will pay will have to go up in order to cover lower costs for others.

The $24.15 flat fee per month is comparable to what Sacramento Municipal Utility District costumers pay.

Proposals to comply with the state mandate submitted by investor owned utilities suggest basic monthly rates less than $24 for low income households, $54 for those between $60,000 and $120,000, and as much as $73 for those households making more than $120,000.

Such a structure for flat rates — called “progressive”—  is what some organizations advocating for low-income households prefer.

“There is so much potential for this reform to deliver urgently-needed bill relief for Californians, but this proposal misses the mark.” noted Theo Caretto, Associate Attorney with Communities for a Better Environment and representative for the California Environmental Justice Alliance.

“ . . . We know that advancing affordability is one of Governor Newsom’s top priorities, and that’s why it’s so disappointing that his agency isn't going far enough to deliver bill relief for low- and middle-income households. The CPUC is protecting the wealthiest Californians at the expense of everyone else. Regulators need to correct course to deliver a progressive proposal that ensures the wealthiest pay their fair share,:

If approved, the new billing structure would go into effect late 2025 and early 2026.

To contact Dennis Wyatt, email dwyatt@mantcabulletin.com