Starting in 2024, the electric bills of most Californians could be based not only on how much power they use, but also on how much money they make. Those who have higher incomes would pay more; those with lower incomes would see their electric bills decline.
A law passed last year in California requires state utility regulators to devise a plan for charging customers income-based fixed fees as part of their electric bills by July 2024. If California goes ahead with this plan, it would be the first state to enact such a change.
The income-based billing concept has provoked strong debate as advocates and opponents argue over whether such a measure would encourage or discourage adoption of sustainable technologies such as solar panels backed with battery systems, electric vehicles, and heat pumps. Opponents include supporters of green technology who fear such a change would discourage customers from investing in new technology to reduce their electricity usage, according to a report in Grist. They say higher costs spur more people to use electricity more efficiently.
Supporters of income-based electric bills say just the opposite: reducing utility costs for lower income individuals could actually encourage them to use the savings from lower bills to install heat pumps and buy EVs.
A key point in the debate revolves around cost related to things that are not linked to usage such as burying electric supply lines to reduce wildfires. Such expenditures are passed on to all customers regardless of the amount of power they consume.
Both sides can agree on one thing: customers are already fed up with rates that have been rising at three times the rate of inflation in recent years. And, escalating electric bills are almost a certainty in the foreseeable future.
Related Stories
High-rise Construction | Mar 12, 2015
Developers confirm Renzo Piano’s contribution in Sydney harbor overhaul
If the entire development is approved, One Sydney Harbour will be Piano’s second project in Australia.
Multifamily Housing | Mar 12, 2015
Multifamily construction has been a boon to L.A.’s economy
A new study finds that nearly one-quarter of Los Angeles’ population lived in rental homes and apartments in 2013, a number that undoubtedly has increased since.
Modular Building | Mar 10, 2015
Must see: 57-story modular skyscraper was completed in 19 days
After erecting the mega prefab tower in Changsha, China, modular builder BSB stated, “three floors in a day is China’s new normal.”
Multifamily Housing | Mar 10, 2015
Developers bullish about multifamily market for third consecutive quarter
After increasing steadily over the past several years, multifamily production has now reached a healthy, sustainable level, according to NAHB Chief Economist David Crowe.
Multifamily Housing | Mar 10, 2015
A loft project in Dallas evolves into a high rise for both affluent and artistic customers
Atelier | Flora Lofts will be built on one of this city’s last choice undeveloped lots.
Multifamily Housing | Mar 10, 2015
KTGY homes in on seniors with new studio
Its director, Doug Ahlstrom, says designs will emphasize socialization and community.
Multifamily Housing | Mar 10, 2015
Multifamily renovation now drives growth for national restoration business
Response Team 1 has established a national footprint through acquisitions.
Retail Centers | Mar 10, 2015
Retrofit projects give dying malls new purpose
Approximately one-third of the country’s 1,200 enclosed malls are dead or dying. The good news is that a sizable portion of that building stock is being repurposed.
Architects | Mar 9, 2015
Study explores why high ceilings are popular
High ceilings give us a sense of freedom, new research finds
Transit Facilities | Mar 4, 2015
5+design looks to mountains for Chinese transport hub design
The complex, Diamond Hill, will feature sloping rooflines and a mountain-like silhouette inspired by traditional Chinese landscape paintings.
