Low-Tier Utility Rates to Jump

The California Public Utilities Commission is considering a proposal to shift charges away from heavy users of home electricity toward low-use customers. San Diego Gas & Electric, the author of the proposal, says its low-use customers have been paying far less than it costs to serve them.

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The changes, if approved, would increase kilowatt-hours charges on everyone’s initial allotment of electricity by an estimated 24 percent come July 1, according to recent filings by SDG&E with the California Public Utilities Commission. The largest home-electricity users would avoid a major bill hike, and could see some reductions.

The proposal is only a prelude to a major restructuring of residential utility bills in early 2015, as mandated by the state legislature last year. Assembly Bill 327, signed by Gov. Jerry Brown in October, allows the utility commission to raise fixed fees to as much as $120 a year and reconfigure the current “tiered” rate structure that steps up charges in four steps according to how much electricity is used by the end of each month.

read more at:  http://www.utsandiego.com/news/2014/feb/06/big-changes-utility-rates/

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