The bridge between the electricity prices paid by the poor and the rich in California will be bridged by the California Public Utilities Commission. They approved of the changes that will revamp the electricity rates in the state. The announcement was made on Friday.
The application of the changes would mean that the people consuming little electricity would see an increase in their electricity bills as the difference between electricity prices paid by the rich and the poor is being bridged.
The poorer consumers will be suffering at the hands of the announcement made by the California Public Utilities Commission. On the other hand, the consumers who use more than average electricity will be in profit. However, these consumers would have to pay an extra “super-user electric surcharge”. The surcharge will regulate the consumption of electricity by the heavy consumers.
The PUC President Michael Parker defended the decision by saying that the utility rates needed to stay in balance with the fast changing electricity industry and that the changes were important in order to make sure that the rates stay reasonable and fair to all the electricity consumers in California.
A substantial number of consumer groups have been critical of the decision. Mark Toney of The Utility Reform Network stated,
“Public opposition to eliminating conservation incentives was loud and clear, as was utility support. This is a lose-lose for customers, but business as usual for the CPUC, which has once again done PG&E, Edison and SDG&E’s bidding.”
Apart from the rate increase, the commission also passed the proposal for different prices of electricity at different phases of the day. The prices will be the highest in the afternoon hours. The changes that would impact the customers of Pacific Gas & Co. among the others will be practiced by the year 2019. Here are the current electric rates of every state in the US, which will be revised in next month’s edition.
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