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Environmental & Energy,

May 24, 2024

Will California’s new electric rate structure reduce bills?

The fixed charge’s effect on electric bills will depend on various factors, such as the customer’s consumption patterns, the utility’s cost recovery mechanisms, and the CPUC’s regulatory decisions.

Megan J. Somogyi

Partner and Writing Development Program Director, Downey Brand LLP


For months, California’s new income-based fixed charge for electric service has been the subject of numerous articles and opinion pieces in publications with local, statewide, and national circulation. The basic facts are generally undisputed: Assembly Bill 205, which ordered the charge, appeared during last-minute budget revisions in 2022 and the legislation was approved without discussion or (possibly) awareness of what was being approved; the California Public Util...

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