Electricity: fixed charges: repeal.
If enacted, AB 2805 would eliminate the requirement for the PUC to implement an income-graduated fixed charge scheme, potentially leading to higher electricity costs for low-income residential customers. The repeal of these provisions may disproportionately affect these households by removing the financial flexibility they currently have under the CARE program, designed to assist those with incomes up to 200% above the federal poverty line.
Assembly Bill 2805, introduced by Assembly Member Essayli, aims to amend Sections 739.9 and 2827.1 of the Public Utilities Code concerning fixed charges associated with electricity services. The bill's main thrust is to repeal existing provisions that allow the Public Utilities Commission (PUC) to impose fixed charges on residential customers based on their income levels. Currently, these charges are designed to ensure low-income customers benefit from a graduated rate system, where they could pay less compared to higher-income households while still contributing to the fixed costs of providing electricity.
There are likely to be points of contention surrounding the bill, particularly from advocacy groups advocating for low-income consumers. These stakeholders might argue that repealing these provisions undermines efforts to protect vulnerable populations from rising energy costs. On the other hand, proponents of the bill may claim it is necessary to streamline utility regulation and reduce bureaucratic overhead, thus promoting a more straightforward approach to setting electricity rates.