DATE:
December 5, 2023
29
TO:
Board of Supervisors
SUBJECT
Title
PROTECTING CALIFORNIA RATEPAYERS BY OPPOSING INCOME-GRADUATED FIXED ENERGY CHARGES (DISTRICTS: ALL)
Body
OVERVIEW
San Diego County residents currently pay the highest electricity costs in the country, according to the U.S. Bureau of Labor Statistics. In 2022, the average San Diego Gas & Electric (SDG&E) ratepayer paid $171 a month in electricity costs. The California Public Advocates Office released data showing SDG&E electricity rates have more than doubled in the past decade, rising 105% between 2014 and 2023. In recent years, utility costs have soared in San Diego County, driving up the already high cost of living.
California ratepayers are keenly aware of the extraordinarily high costs and inadequate production. Many county residents have responded by reducing energy usage, especially during peak times, to lower their bills. Many Californians made long term investments, spending thousands of dollars, to conserve power and utilize renewable energy sources, such as rooftop solar. California residents and businesses have heavily invested in solar panels, leading the nation in solar installations in 2022, according to the Solar Energy Industries Association. San Diego County leads the state in solar megawatt capacity, with enough solar infrastructure to produce almost 15,000 megawatts a year.
Despite these efforts, energy rates continue to rise faster than inflation. With the passage of Assembly Bill (AB) 205 in 2022, the state's public utilities code was amended to allow an option for the California Public Utilities Commission (CPUC) to adopt income-graduated fixed charges for electricity bills. This fixed charge would be based on a household's income and would require a minimum of three income thresholds. The income-based billing structure would pool together to drive down, at least initially, the per kilowatt hour usage fees. The updated code stated that if a fixed rate charge wer...
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