The California Public Utilities Commission (CPUC) voted on July 3rd, 2015 to adopt a new residential rate structure. The new structure is more closely aligned with the actual costs of providing electric service and provides many customers living in high-temperature areas long-overdue relief from high electric rates. Under the current tier based pricing structure adopted in 2001 as a result of the energy crisis, 25% of residential customers, often those with larger families or who live in areas with high summer temperatures, have paid the vast majority of all rate increases.
October 2015 Changes:
Increase the monthly minimum delivery charge to $5 for customers enrolled on the California Alternate Rates for Energy (CARE) program, Family Electric Rate Assistance (FERA) program, and Medical Baseline program. This minimum delivery charge only applies if the delivery charge total less than $5. Learn how this is calculated.
Increase the monthly minimum delivery charge for all other residential accounts to $10. This minimum delivery charge only applies if the delivery charge total less than $10. Learn how this is calculated.
Implement a fixed monthly discount of 12% for customers participating in the FERA program.
Reduce the variances in pricing between tiers within the standard residential rate plan.
2016 and Beyond:
Reduce the number of tiers from four to two (reducing to three tiers in 2016, and to two tiers in 2017).
Continue to reduce the variances in pricing between tiers within the standard residential rate plan.
Starting in 2017, a Super User Electric (SUE) surcharge for customers who use more than twice the average amount of electricity (more than 400% of the baseline allowance) will be applied.
Preparing to transition customers in 2019 to a default time-of-use rate plan in which the price of electricity will depend on the time of day. During this transition, customers will have the ability to opt out onto another rate plan.
The new structure is more closely aligned with the actual costs of providing electric service.