State to consider adding electricity surcharge for energy ‘hogs’

The California Public Utilities Commission is scheduled to choose on Friday between two proposals that would revamp the way electricity rates are set at Pacific Gas and Electric Co., Southern California Edison and San Diego Gas & Electric Co. Both proposals would raise monthly bills for the most energy-efficient Californians while cutting costs for big energy users.

“To be effective, this signal must go beyond a mere indication that the customer has passed into a higher usage tier; the customer must be able to clearly tell that a portion of their usage was far in excess of the typical household usage and that conservation steps should be taken,” they wrote.

According to the commission’s staff, the most efficient California households now pay less for electricity than the utilities spend supplying it to them.

Many energy analysts consider time-of-use pricing a powerful tool to encourage conservation, with the highest prices hitting in late afternoon when demand on California’s electricity grid reaches its daily peak.

Most households would pay at least $10 per month, and low-income households would be charged at least $5.

Since most customers already spend far more than that, the minimum bill probably would affect few people, at least at first.

[...] at a time when more residents are installing home solar arrays and slashing their bills, it would guarantee that everyone would share the costs of maintaining the electric grid.

Rather than setting a minimum bill, the utility companies wanted permission to impose a $10 fixed monthly service fee on all their customers — an idea fiercely opposed by consumer groups.

“It’s hard to view this move as anything other than yet another gift to the utilities when nobody’s watching,” said Evan Gillespie, director of the Sierra Club’s My Generation Campaign, which promotes the use of solar power and renewable energy.