New state law leaves energy customers enraged

There's fierce debate and pushback over AB 205 and whether an income-based fixed charge for electricity will be implemented by utility companies

An Escondido resident speaks during San Diego Gas & Electric’s general rate case hearing in front of the California Public Utilities Commission on Tuesday at Escondido City Hall. Residents are furious over another proposal to implement an income-based fixed charge by the CPUC. Steve Puterski photo

NORTH COUNTY — A little-known state law has led to a furious backlash against the state’s utility companies for adding a fixed rate schedule to each ratepayer’s bill.

Under Assembly Bill 205, which was authored by Phil Ting (D-San Francisco), the law allows for the California Public Utilities Commission to “adopt new, or expand existing fixed charges” based on income for residential customers.

Ahmad Faruqui, an economist with a background in utilities, told KPBS the income-based language was snuck in at the last minute, and “nobody even knew it was happening.” He told the outlet there was no debate on the Assembly floor where it was passed.

On Tuesday, the CPUC held a hearing at the Escondido City Hall for San Diego Gas & Electric’s general rate case, which happens every four years. SDG&E Communications Manager Anthony Wagner confirmed the income-based model is law, although there is a swirling debate about whether it’s required or optional.

“That was a proposal of the state legislature, and we are engaging with that particular process,” he added. “That’s before the California Public Utilities Commission and the best avenue to do public comments is with the website for the CPUC. A general rate case … is best described as our budget. This particular hearing is not asking for any more revenue and we’re not collecting any more with this hearing.” (To comment on the income-based proposal, click here.)