A new California law will require its three investor-owned utilities to charge customers fees for electricity based not only on how much electricity they use, but also on how much money they make.
Most of the time, what you pay for electricity or water or gas depends on how much you use. Leave the air conditioner and the lights on all night, and your electricity bill will spike. Take long, relaxing bubble baths every day, and your water bill will climb.
The debate beginning in California touches on the question that all states will have to face sooner or later: Who should pay for the damage climate change is doing to the electricity grid? Those high prices could deter Californians who want to electrify their homes and vehicles to cut carbon emissions. In general, switching out gas heating for an electric heat pump or a gas-powered car for an electric car saves money and helps the planet. But high electricity prices change the calculus. In some cases, people who electrify their homes might end up paying more.
The California Public Utilities Commission, which regulates private utilities in the state, hasn't decided what those income-based rates will look like yet. But the proposals that have been put forward thus far by nonprofits and the utilities themselves have sparked concern among consumers. "This proposal actually discourages conservation," Dawson, the retired data manager, wrote to the commission. "Those that live without air conditioning and conserve electricity or who use solar energy ... will still be required to pay the monthly fees."
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