This proposal has two parts: (1) Instead of just paying per kW hr, there is a fixed flat-charge amount and a (supposedly reduced) per kW hr amount. (2) The flat-charge amount will be scaled according to yearly income!
Part 1 at least sort of models the fixed costs of infrastructure. But by lowering the marginal cost, this system discourages conservation. I thought that years ago the bill was broken down into a flat+usage, but the change to all usage was made specifically to encourage conservation.
Part 2 is truly insane. I guess progressive income tax rate tiers is just as bad, but it'll take some time to get used to. I suppose this will give more people more of an urge to cheat on their taxes. And I wonder if this will push more people to completely live off the grid even in the middle of an urban area where shared electricity infrastructure provides fantastic economies of scale.
The pushers of this plan say it'll help low-income people to pay less. However, if you are low-income (no A/C and aren't home most of the time because you have a full-time job) that fixed cost might be more than your entire current bill if you aren't ridiculously wasteful.
If you're poor enough to qualify for this, why are you still here? The worse thing I saw starting this year, SDGE are going to automatically opt everyone into "renewable" energy, likely at a higher cost. You can opt out, but the change has to be made manually.
They already do this to some degree. But, this proposal is much worse of course. I was out of the state for a few years and I was always mystified to have a monthly PG&E bill of $15.
I thought someone was using my place; a guy had a key and went to check my mail. Maybe he was cooking up there and entertaining bimbos? I used my access to the new "smart meter" and saw that there was no electricty used although I was billed.
Later, I saw the explanation in a letter. The "public utilities commission" had decided that my minimum bill could not be zero even if I used zero energy. The bill was what they decided was a "minimum" needed to keep the infrastructure going or something.
If you are low income, PG&E lets you apply for "assistance"; I saw the ads for this on Mexican TV channels sometimes.
I was always mystified to have a monthly PG&E bill of $15.
Yes, there has always been a minimum bill. But now the minimum bill is going to be $92/month! Yikes. Well, admittedly, my month bill is usually about $100, but unless the cut the per kW hr charge drastically, I'm going to see a higher bill. Time to live off the grid, I guess.
(1) Instead of just paying per kW hr, there is a fixed flat-charge amount and a (supposedly reduced) per kW hr amount.
(2) The flat-charge amount will be scaled according to yearly income!
https://ktla.com/news/local-news/california-power-companies-roll-out-fixed-rate-bill-proposal/
Part 1 at least sort of models the fixed costs of infrastructure. But by lowering the marginal cost, this system discourages conservation. I thought that years ago the bill was broken down into a flat+usage, but the change to all usage was made specifically to encourage conservation.
Part 2 is truly insane. I guess progressive income tax rate tiers is just as bad, but it'll take some time to get used to. I suppose this will give more people more of an urge to cheat on their taxes. And I wonder if this will push more people to completely live off the grid even in the middle of an urban area where shared electricity infrastructure provides fantastic economies of scale.
The pushers of this plan say it'll help low-income people to pay less. However, if you are low-income (no A/C and aren't home most of the time because you have a full-time job) that fixed cost might be more than your entire current bill if you aren't ridiculously wasteful.