LOS ANGELES (CBSLA.com) — The Public Utilities Commission on Friday unanimously passed a rate re-vamp.
Californians who use less energy will likely be paying more. Big users will see a price decrease.
CBS2’s Randy Paige examined the logic behind the new rates and how they will affect the average consumer.
The four-tiered structure — currently in place — which determines your cost based on how much electricity is consumed is about to change drastically, Paige reported.
There will now only be two rate tiers. Electricity in the higher tier will cost 25 percent more than the lower tier.
Paige said there will also be a new surcharge for the highest users.
Southern California Edison said Friday this is all good news for ratepayers trying to survive triple-digit heat in LA summers.
“High usage customers who have little alternative to using air conditioning have been burdened with paying a disproportionate share of electric costs,” SCE’s Rick Garwacki said in a written statement.
He went on to say that “today’s decision is another positive step toward a more equitable sharing of costs.”
Some customers in Alhambra had a different take on the new rates.
“It seems like a problem people taking away people’s motivation to conserve for people who use a lot of electricity I don’t know if it’s business owners or households, but I think that its not a good idea,” said Paul Stukan.
“It’s not right at all because you use less, you should pay less, right?” said Isabel Aguirre.
“In a few years I’m going to be retired and I will be in the poor person’s lot and I don’t like it,” said Jeanette Miller.
Consumers will not see an immediate change on their bill — the new rate structure will be phased in over the next four years.
And customers with the Los Angeles Department of Water and Power won’t be affected at all — the new two-tier rate structure does not apply to publicly held utilities.