Major Fee Hike To Hit Californians' Monthly Utility Bills

CALIFORNIA — The California Public Utilities Commission approved a controversial new monthly fee for utility bills affecting millions of California residents Thursday with a 4-0 vote.

The unanimous decision came despite widespread opposition this week from ratepayers and legislators who contend it punishes small households while rewarding energy hogs.

The approved plan requires most residents to pay an additional $24 per month — roughly $300 per year — in addition to what they use in electricity. The plan also calls for "consumption-based" rates that will be reduced from 5 to 7 cents per kilowatt-hour.

The fixed $24 fee impacts the those who get their electricity from the California Public Utility Commission-regulated Pacific Gas and Electric Company, SoCal Edison and San Diego Gas and Electric Company.

The utilities contend funding from the new fixed rate will be earmarked for maintenance of the power grid, which they say is unfairly being borne by too many lower income residents living in high-use areas, NBC Los Angeles reported.

A CPUC spokesperson told Newsweek that the fixed charge is expected to go into effect in late 2025 or early 2026.

The fee faced some major pushback by SoCal lawmakers who made a last-minute push to stop the implementation of the $24 monthly charge.

Assemblymember Jacqui Irwin (D-Thousand Oaks) told KTLA the 5 to 7 cents per kilowatt an hour rate reduction in exchange for the fee is not enough to offset "skyrocketing" electricity rates.

“Our constituents have had enough and so have we,” she said in a press conference. “It’s time to put some reasoning back into how we charge for electricity in California.”

According to LA Daily News, over the past decade, “PGE rates have increased 127%, SCE rates have increased 91% and SDGE rates have increased 72%.”