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
| May 30, 2018
Accelerate Live! talk: An AEC giant’s roadmap for integrating design, manufacturing, and construction
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), Skender CEO Mark Skender and Chief Design Officer Tim Swanson present the construction giant’s vision for creating a manufacturing-minded, vertically-integrated design-manufacturing-build business model.
| May 30, 2018
Accelerate Live! talk: From micro schools to tiny houses: What’s driving the downsizing economy?
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), micro-buildings design expert Aeron Hodges, AIA, explores the key drivers of the micro-buildings movement, and how the trend is spreading into a wide variety of building typologies.
Codes and Standards | May 30, 2018
Silicon Valley cities considering taxes aimed at large employers
The aim is to offset the impact on housing costs and homelessness by tech companies.
Multifamily Housing | May 30, 2018
Concentrated redevelopment: Apartment complex takes mixed use to the next level
An “intergenerational” mixed-use apartment complex may be a prototype for reenergizing neglected neighborhoods in America’s largest county.
| May 24, 2018
Accelerate Live! talk: Security and the built environment: Insights from an embassy designer
In this 15-minute talk at BD+C’s Accelerate Live! conference (May 10, 2018, Chicago), embassy designer Tom Jacobs explores ways that provide the needed protection while keeping intact the representational and inspirational qualities of a design.
BD+C University Course | May 24, 2018
Building passively [AIA course]
17 tips from our experts on the best way to carry out passive house design and construction for your next multifamily project. This AIA CES course is worth 1.0 AIA LU/HSW.
Multifamily Housing | May 23, 2018
Yankee Dandies: Century-old New England mills become multifamily residences
Having long outlived their original uses, two century-old New England mills have become valuable community assets once again—as multifamily residences.
Multifamily Housing | May 16, 2018
Pampering the pups: Why dog-washing stations are a must-have in multifamily developments
Self-serve dog-washing stations are reinforcing strong bonds between multifamily residents and their beloved canines.
Mixed-Use | May 16, 2018
Los Angeles mixed-use building uses prefabricated wood frame to reduce costs
SPF:architects designed the building.
Multifamily Housing | May 14, 2018
Yardi Matrix report shows U.S. rent surge in April
Year-over-year rent growth leaders in April were Orlando, Fla., Sacramento, Calif., Las Vegas, Tampa, Fla., and Phoenix.
