By: Melody Petersen

With little debate two years ago, state lawmakers passed a complex energy bill that enabled a sweeping change in how most Californians are billed for electricity. The legislation was what Pacific Gas & Electric had asked for from the state public utilities commission three months before: a transformation of electric rates so that households would pay a fixed charge each month in exchange for lower rates for each kilowatt hour they used. Gov. Gavin Newsom submitted the bill as part of a massive 2022 budget revision. In four days, it was passed out of an Assembly committee hearing without discussion, approved by the full Assembly and Senate and signed by Newsom. The state’s three largest investor-owned power companies that pushed for the change say it will encourage Californians to ditch cars and appliances that run on planet-warming fossil fuels and replace them with vehicles, stoves and heaters that operate on electricity from solar panels and wind turbines. They also say the new monthly fee will allow them to more evenly allocate fixed costs among customers. But opponents say the legislation was a financial gift to PG&E, Southern California Edison and San Diego Gas & Electric, and will cause millions of Californians who live in small homes or apartments that use little electricity to pay more, while residents in large homes that use a lot of electricity will save money.