Commentary: Setting aside the merits, or lack thereof, of income-based utility pricing, AB 205 is another example of how trailer bills are misused – and while it’s just wrong, even more abusive trailer bills have been proposed. 📝: DanCALmatters
“If the Public Utilities Commission establishes fixed charges on default residential customer rates, ensure that the fixed charges are established to more fairly distribute the burden of supporting the electric system and achieving California’s climate change goals through the fixed charge.”
In a few hours, AB 205 whipped through both legislative houses and Gov. Gavin Newsom signed it into law a day later.. The state’s utilities had filed plans to replace the $10 fixed charge with variable fees tied to customers’ incomes, ranging from as low as $15 for households with the lowest incomes to as much as $128 for those in upper-income brackets.
The revelation garnered national publicity and touched off debate over what was clearly an effort to have higher-income consumers underwrite the utility bills of those with lower incomes.
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