New California laws 2024: Income-based electric bills

PREV. COVERAGE: California residents may soon pay more on electric bill depending on your income

Some changes are coming to your electric bill and it could cost you more every month.

LOS ANGELES - California residents might find their electric bills looking a little different in the new year.

Typically, electricity bills reflect the amount of electricity a specific household uses. But, after Assembly Bill 205 passed last year, California could see electricity charges based off of income level instead.

The state’s three largest electric utility companies, Southern California Edison Company, Pacific Gas and Electric Company and San Diego Gas & Electric Company, all proposed the plan, saying that low-income customers could save approximately $300 a year under this new law.

Alternatively, California households earning more than $180,000 a year would end up paying an average of $500 more a year on their electricity bills, according to the proposal.

PREVIOUS COVERAGE: California electric bills may soon be income-based

Here's a breakdown of the proposed rate restructuring for SoCal Edison customers, based on income:

Above $180,000: $85/month
$69,000 - $180,000: $51/month
$28,000 - $69,000: $20/month
Less than $28,000: $15/month

The plan will break down monthly bills into a fixed rate, plus a reduced usage charge based on consumption, according to officials.

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Supporters of the bill believe it to be a possible solution to many moderate and low-income families getting priced out of California by rising housing costs. Opponents worry the law could weaken incentives to conserve electricity or raise costs for customers using solar energy.

The California Public Utilities Commission’s deadline for deciding on the suggested changes is July 1, 2024, although officials said implementing it will still take some time before California residents see any changes to their electricity bills.