(PatriotWise.com) — The biggest power companies in California have announced a new billing structure while reports of a grid collapse emerge. Energy prices have increased in the state due to a rushed transition from oil and gas. Last year, residents were warned that blackouts could become a common occurrence. The push for electric vehicles also places intense pressure on the electrical grid. Renewable sources now account for 30% of California’s energy, and its leaders say it will be completely fossil fuel free by 2045.
Mike Jacobs, Senior Energy Analyst at the Union of Concerned Scientists, said, “The use of an electric vehicle is like adding one or two air conditioners to your residence in terms of its energy increase.” Ram Rajagopal of Stanford University has predicted that if the “dream” of 100% electric vehicles comes to fruition, “Today’s grid may not be able to support it.”
The cost of power has been steadily increasing in California, and it has the highest retail price in America. In 2020, the price for electricity in California was 18 cents/kWh – 70% higher than in any other state. It had already grown by 18% since 2016.
In response, the California legislature passed Assembly Bill 205, calling on energy companies to reduce costs to the consumer and simplify bills. Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric have since composed a proposal that they say will adhere to the bill’s requirements.
The plan is to introduce fixed rates dependent upon household income. Those earning between $28,000 and $69,000 will pay between $20 and $30 per month, depending on where they live. Households earning from $69,000 to $180,000 will pay between $51 and $73 per month, while people with incomes above $180,000 will be charged between $85 and $128 monthly.
Southern California Edison said the new proposal will lower bills for the state’s poorest people while increasing transparency. The company said more than 1 million people would see their energy bills fall by around 20%.
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