PG&E just raised its rates by a whopping 13 percent, but brace yourself for another big jump in your electric bill. The state is poised to add an extra charge to your bill starting this summer, based not on how much electricity you use, but on how much income you earn.
This is the so-called fixed utility fee, also known as a fixed utility tax, and it’s a radical change in how Californians pay for power, even though we already pay the highest rates in the country. Under this new system, every household will be levied a fixed-rate fee based on your income level, which is designed to pay for more electricity infrastructure as the state moves toward solar power and electric cars and away from fossil fuels. On top of that, you will also pay for how much energy you use, but advocates say this new framework will mean lower monthly bills for those who can’t afford steady rate increases. On the flip side, people who make more money will start paying a lot more for their electricity, no matter which provider you use. Now, a wide-ranging coalition of groups is calling on the legislature and Governor Newsom to scrap this new plan and repeal the fee.
In today's edition of the State of California, KCBS political reporter Doug Sovern and KCBS Radio news anchors Bret Burkhart and Patti Reising spoke to Loretta Lynch, former longtime president of the California Public Utilities Commission. She is among those opposing the new fee.