In recent years, the rising costs of water, electricity, and gas in California have become increasingly burdensome for many households. Despite this, politicians continue to pass new regulations, leading to utility companies increasing service fees starting from November.
This price hike will affect residential customers across California: starting in November, San Diego Gas & Electric Company (SDGE), Southern California Edison (SCE), and Pacific Gas and Electric Company (PGE) will charge the vast majority of users a $24 Base Services Charge per month. The charge is based on the AB205 bill passed by the Democrat-led state legislature.
The bill, framed against a backdrop of “green energy” and environmental protection, mandates that utility companies adjust their rate structures to support the transition to clean energy and ensure fair electricity prices, reducing monthly bills for low-income families, among other provisions.
AB205 was passed on June 29, 2022, and signed into law by Governor Newsom the following day. Many ordinary households subsequently discovered that the bill not only did not lower their monthly bills but actually made them more expensive.
SCE stated that the utility company must adjust billing methods for residential customers based on the bill but does not profit from these changes. The aim is to make it easier for users to utilize electric technology and cleaner, sustainable energy. Even households completely powered by solar energy will have to pay this service fee monthly.
Following the adjustment, the billing for electricity supply will now include a separate and fixed Base Services Charge. On the other hand, the cost per kilowatt-hour (kWh) will decrease, impacting residents with different electricity consumption habits in various ways.
Taking SCE’s current electricity price benchmark on June 1 as an example: a low-consumption customer with a monthly usage of 300 kWh had a bill of $89 before the adjustment ($53 Energy Delivery Charge + $36 Generation Charge) which will increase to $101 after the adjustment ($41 Energy Delivery Charge, $36 Generation Charge, and $24 Base Services Charge).
For a moderate usage customer consuming 600 kWh per month, the bill was $212 before the adjustment and will be $209 after. As for high electricity usage customers consuming over 1,000 kWh per month, the bill was $380 before the adjustment and will be $355 after.
SCE explained that the bills for moderate and high usage customers may stay the same or decrease because the cost per kWh might offset the $24 Base Services Charge.
Data shows that a typical three-person household consumes an average of 500-600 kWh per month. However, many families fall into the category of low-consumption customers.
For most households, the Base Services Charge is $24 per month, but some low-income families are eligible for discounts. For example, participants in the Family Electric Rate Assistance (FERA) program pay a monthly Base Services Charge of $12, while the California Alternate Rates for Energy (CARE) program participants pay $6.
Finally, SCE reminds all users that the increased service fees will not affect their current rate plans.