Electricity prices in California are very high. The state has three big energy companies that provide electricity to consumers at different prices that are not fixed. To deal with this, the state Legislature ordered regulators in 2022. Since then, power bills in California have been getting more expensive.
Now, a state plans to lower utility bills to reduce the burden on low-income families in California. In 2024, the California Public Utilities Commission (CPUC) approved a proposal to reduce the price of residential electricity. They agree to follow a new billing structure mandated by the state Legislature in Assembly Bill 205.
In this article, we will discuss everything about the new electricity bill law in California. Keep reading!
What is the New Electricity Bill Law in California?
In California, the utility regulator authority wanted the largest power providers to charge a new monthly flat fee to consumers. This fee will be fixed based on electricity usage on a day-to-day basis. It is exchanged for an overall reduction in electricity bills. According to state utility regulators, this billing idea is beneficial for both power companies and users.
Under the new legislation, CPUC wants to create a novel system that includes income-based fixed charges for electricity. Some people think this is a giveaway to incumbent utilities. Others feel that the charges reflect new costs in addition to existing electricity rates. But this is not true.
This new electricity bill in California focuses on increasing equity by providing support to low-income households. It also involves investments in grid modernization and clean energy solutions. Overall, the changes in the electricity bill aim to balance the energy grid and promote sustainable energy.
Features of New Electricity Bill Law in California
Under the new electricity bill policy, the power companies need to reduce the utility prices households pay for electricity usage. The reduction in rate will vary from between 8% and 18%. But, the reduction in rates will depend on the season and time of day. For you, we have listed the new billing structure in California. Take a look!
- The rate of electricity will be reduced by 5 to 7 cents per kilowatt-hour for all households.
- Now, there will be a flat fixed price for maintaining power lines and equipment. This flat rate will be added to the electricity bill.
- The flat rate will be around $6 per month for low-income customers who enrolled in California Alternate Rates for Energy (CARE). If you live in the deed-restricted area and have a low income, then you will need to pay a discounted flat rate of around $12 per month.
The new structure will make electricity more affordable for everyone to power their homes or vehicles.
The changes are designed to bring down the bills of lower-income Californians, especially those living inland where it is hotter and the need for air conditioning is higher.
Reason Behind the California’s New Electricity Bill Rule
One of the biggest reasons for the new electricity bill law is the way the power companies charge rates in California. These companies charge more for more usage. In addition, these companies also charge more for grid maintenance, repair, and wildfire risks. So, to correct this, the new electricity bill law has been passed by lawmakers in California.
Now, a portion of the electricity bill would be fixed and not based on how much people use. The new law is designed to support California’s environmental policies, such as achieving carbon neutrality by 2045. By supporting clean energy initiatives, the state aims to lower overall carbon emissions while making energy more affordable for low-income users.
Reactions For and Against
There are mixed reactions of people and law firms to the new electricity bill law in California. Some are in favor of it, and some are finding loopholes in it. There are critics who feel that households that will not benefit from discounts will need to pay more to use less energy. On the other hand, the state’s well-known advocates, such as The Utility Reform Network and the California Public Advocates Office, are in support of the new electricity bill law. They agree that this new bill structure will make electricity more affordable in California, especially for low-income families.
Those who are against this law argue that the new billing policy will force most households to dump their gas-powered vehicles. They further believe that it will cost them more while discouraging their efforts for energy conservation.
Moreover, people from the solar industry are also worried about lower electricity rates during peak hours. They believe that consumers will not conserve energy as they don’t have to pay high during peak hours. According to them, California has struggled to generate electricity during extreme heat and faced rolling blackouts in 2020. So, lowering bills in peak hours can create a similar situation again.
Switch to Solar Power In California to Become Energy Independent
Are you worried about whether the new electricity bill law in California will lower your utility bill or not? If yes, then switching to solar power is one of the best ways to reduce your energy bills in the state. California has long, hot summers and is one the best places to harness sunlight to generate free energy for your home. Also, it is the cleanest energy source, causes no pollution, and contributes to a more sustainable future. With a lifespan of 25-30 years, a solar power system can help you save a lot.
Also, solar panels can increase the resale value of your property by many times.
So, investing in solar power is beneficial in all aspects and is a good investment, too. Here are some of the solar solutions for you in California:
AC300+B300 | Home Battery Backup
You can use the solar home battery backup to power your house during peak hours, at night, or during travel. AC300+B300 home battery backup of BLUETTI is the best option for your everyday energy needs. It can store energy from 3,072Wh to 12,288Wh. The LiFePO₄ battery of this power backup offers reliable performance for over 10 years. You can charge it in four ways. With the AC300 solar system integrated into your home, you'll have enough energy to power your day-to-day living smoothly. It can easily power EV vehicles, AC, kitchen appliances, and more.
BLUETTI AC200MAX + 2*B230 + 3*PV200 | Solar Generator Kit
BLUETTI solar generator kit with AC200MAX + 2*B230 + 3*PV200 is best for running heavy appliances at home to save on utility bills. It has seven ways to recharge (AC/Solar/Car/Generator/Lead Battery/Dual AC/AC+Solar). Also, this solar kit is packed with 2048Wh ultra-durable LFP cells and a 2,200W full-power pure sine wave inverter. It has a 2,048Wh Capacity, which is expandable to 6,144Wh with 2×B230. The company offers a good warranty on its products.
BLUETTI AC500 + 2*B300S | Home Battery Backup
Are you looking for a budget-friendly solar solution for your power needs? If yes, then BLUETTI AC500 + 2*B300S | Home Battery Backup is a great option for you. It has 5,000W rated power and provides expandable capacity from 3,072Wh to 18,432Wh. You can recharge it in six ways 6 (AC/Solar/Car/Generator/Lead-acid Battery/Dual Charing (AC/AC+Solar). Also, it comes with a four-year warranty. This power backup is best for day-to-day energy needs and for traveling. You can carry it with you to charge your EV, phone, or other electronic devices during camping.
FAQs
What is the peak time in California?
The peak time of electricity in California is between 4 pm to 9 pm. It is the time when the heat is maximum, and power usage is also maximum. Earlier the electricity prices were very high during this time. But now, with the new electricity bill law in California, there will be no hike in prices at peak hours.
How often do you pay electric bills in California?
Energy bills in California can be paid monthly or bimonthly, depending on the location. Most homeowners receive bills after 60 days. Rest you may choose your billing cycle at your convenience.
How can I lower my electric bill in California?
If you wish to lower your energy bill in California, then consider switching to solar power. It not only saves you a lot on utility bills but is also a renewable source of energy. It causes no pollution and is green energy. Considering the hot days in the state, solar is the best option for residential and commercial power needs.
Is California charging for electricity based on income?
The new electricity bill law in California is helpful for low-income households as it proposes to fix monthly rates. The maintenance and repair rates will be fixed every month. Also, during peak hours, when electricity is in the most demand, the rates for customers would fall between 8% and 9.8%.
