SCE Proposes Bill Relief for Lower-Income Customers

Rhea-AI Summary

Edison International submitted a proposal to the California Public Utilities Commission aimed at providing bill relief for lower-income households. If approved, this would reduce the fixed electric service costs for approximately 1.2 million lower-income customers by 16%-21% and decrease rates for all residential customers by 33%. The proposal is in response to the recently passed Assembly Bill 205, which supports an income-based fixed charge system. Under this system, lower-income customers would pay a fixed fee of $15 to $20, while higher earners could pay up to $85. The goal is to align with California's climate policies, making clean energy technologies more affordable for low-income families. The proceeding is expected to last until mid-2024.

Positive

• Proposed bill relief will provide 16%-21% average savings for 1.2 million lower-income customers.
• Rates for residential customers could decrease by about 33%, lowering overall electricity costs.
• Income-based fixed charges will make electric bills more predictable for low-income households.

Negative

• None.

NORTHAMPTON, MA / ACCESSWIRE / April 17, 2023 / Edison International

Customers in lower-income households would pay lower bills for fixed electric service costs under SCE's proposal submitted to the CPUC.

Energized by Edison

By Ron Gales ENERGIZED by Edison Writer

Providing bill relief for millions of lower-income customers is central to a proposal Southern California Edison filed today with the California Public Utilities Commission. The proposal would also lower the amount all residential customers pay for each kilowatt-hour of electricity while increasing transparency in their bills.

Because of a recently passed state law (Assembly bill 205), the commission is holding a proceeding to implement a fixed charge on electric bills, based on a household's income level. This means that customers from lower-income households would pay a lower fixed charge than those from higher-income households.

"We understand that our customers are dealing with rising costs of all kinds and are working to keep customers' bills as manageable as possible," said SCE President and CEO Steven D. Powell. "SCE believes an income-based fixed charge will provide benefits to millions of customers, particularly those most in need of energy bill relief. It will also make it easier for more Californians to afford clean energy technologies."

How would it work?

The proceeding will focus on basing electric bills on two main charges:

• A monthly fixed charge to cover certain fixed costs of providing electric service. For example, the costs of safely building, maintaining and operating the electric grid, of providing customer support, and the cost of state initiatives to help income-qualified customers and energy-efficiency programs
• An energy charge based on the electricity the customer uses during their billing period.

While these would not represent new or additional charges, they would restructure how electric bills are calculated.

Under the proposal, SCE's approximately 1.2 million lower-income customers would receive an average 16%-21% bill reduction, and about half of SCE's customers would see lower bills, assuming no change in electricity use. Rates for each unit of electricity consumed (kilowatt-hours) would decrease by about 33% for all residential customers.

The proposal also recommends the monthly fixed charge for SCE's lower-income customers be as low as $15 but no greater than $20; and the highest fixed charge, for customers in the top 19% of earners, be $85.

If adopted, the proposal would make monthly bills more predictable for customer planning purposes. It would also support California's climate and energy policies by making the use of clean energy technologies, such as electric vehicles and heat pumps, more affordable, particularly for lower-income families.

The proposal recommends that customers' income verification be managed by a qualified, independent state agency or third party; the utilities would not manage nor have direct access to such data.

The proceeding is expected to last through mid-2024.

Learn more about SCE's work to lower energy bills at sce.com/customer-service/working-for-you.

View additional multimedia and more ESG storytelling from Edison International on 3blmedia.com.

Contact Info:
Spokesperson: Edison International
Website: https://www.3blmedia.com/profiles/edison-international
Email: info@3blmedia.com

SOURCE: Edison International

View source version on accesswire.com:
https://www.accesswire.com/749528/SCE-Proposes-Bill-Relief-for-Lower-Income-Customers

FAQ

What is Edison International's recent proposal for lower-income customers?

Edison International proposed a bill relief plan to reduce electric service costs for lower-income households by 16%-21%.

When was Edison International's proposal submitted?

The proposal was submitted on April 17, 2023.

What are the expected savings for Edison International's lower-income customers?

Lower-income customers are expected to save an average of 16%-21% on their electric bills.

How will the fixed charges change for Edison International customers?

The fixed charge for lower-income customers will range from $15 to $20, while higher earners could face charges up to $85.

What is the timeline for the implementation of Edison International's proposal?

The proceeding regarding the proposal is expected to last until mid-2024.