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
Multifamily Housing | Jul 31, 2017
Chicago’s Ukrainian Village neighborhood adds new co-living space
The new building offers 12 bedrooms across four floors of living space.
Multifamily Housing | Jul 27, 2017
Apartment market index: Business conditions soften, but still solid
Despite some softness at the high end of the apartment market, demand for apartments will continue to be substantial for years to come, according to the National Multifamily Housing Council.
Multifamily Housing | Jul 27, 2017
Game rooms and game simulators popular amenities in multifamily developments
The number of developments providing space for physical therapy was somewhat surprising, according to a new survey.
Multifamily Housing | Jul 25, 2017
Co-living arrives in Queens: Common adds two new co-living homes
Common adds a new coliving home in Brooklyn and its first offering in Queens with Common Lincoln and Common Cornelia.
Multifamily Housing | Jul 19, 2017
Student housing trends: The transformation of co-living in college
The Student Hotel is representative of a new model for delivering housing solutions for students globally.
Multifamily Housing | Jul 19, 2017
KTGY-designed Elan Menlo Park nears completion
The 146-unit apartment community was designed as a series of six interactively connected garden-style apartments.
Multifamily Housing | Jul 12, 2017
Midyear Rent Report: 26 states saw rental price increases in first half of 2017
The most notable rental increases are in growing markets in the South and Southwest: New Orleans, Glendale, Ariz., Houston, Reno, N.V., and Atlanta.
Multifamily Housing | Jul 12, 2017
7 noteworthy multifamily projects: posh amenities, healthy living, plugged-in lifestyle
Zen meditation gardens, bocce courts, saltwater pools, and free drinks highlight the niceties at these new multifamily developments.
Mixed-Use | Jul 7, 2017
ZHA’s Mandarin Oriental hotel and residences employs ‘stacked vases’ design approach
The mixed-use tower will rise 185 meters and be located in Melbourne's Central Business District.
