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California Public Utilities Commission Adopts Income-Graduated Fixed Charges

May 9, 2024

SAN FRANCISCO — Today, the California Public Utility Commission (CPUC) voted 4-0 to lower volumetric (per-usage) rates and implement three tiers of monthly electric fixed charges:

  • Tier 1 – $6 Fixed Charge – For CARE households, i.e. households earning below 200% of the federal poverty line and those who qualify for certain income-based assistance programs. This tier accounts for approximately a quarter of households.
  • Tier 2 – $12.08 Fixed Charge – For FERA households, i.e. households earning between 200 and 250% of the federal poverty line, and those in 80% area median income qualifying affordable housing.
  • Everyone Else – $24.15 Fixed Charge

This proposal comes two years after the passage of AB 205, which required regulators to implement income-graduated fixed charges (IGFCs) for Californians’ electric bills.

See Sierra Club’s full press release featuring CBE here.