California’s Plan to Base Utility Bills on Income Could Get a New Twist

Rather than verifying household income, regulators propose basing rates on enrollment in subsidy programs.

Electric power lines at sunset in El Segundo, Calif., on Aug. 31, 2022. Patrick T. Fallon/AFP via Getty Images

Regulators with the California Public Utilities Commission issued a proposal on March 27 in response to a new law, which takes effect in 2025 and 2026, that would charge a fixed rate for electricity based on users’ incomes.

The proposal suggests determining income levels based on enrollment in subsidy programs rather than by verifying household incomes.