California Public Utilities Commission proposes to cut electricity rates

SAN DIEGO (FOX 5/KUSI) -- Paying the electric bill is a year-round struggle for many people in San Diego. But now, there’s a proposal at the state level to drastically slash rates.

The California Public Utilities Commission is looking at a proposal to cut electricity rates for customers all over the state.

The idea sounds good for customers in San Diego County who have seen their San Diego Gas & Electric bills skyrocket.

According to the 265-page proposal, most California customers would end up paying a flat charge of about $24, while their electricity rates would be cut by five to seven cents per kilowatt hour.

Low-income customers would end up paying even less. The usage rate would vary throughout the day to encourage conservation. The rate cuts would only apply to residential customers and it’s only for electricity, not gas.

According to the proposal, the new billing structure more evenly allocates fixed costs among customers and will encourage customers to adopt electric vehicles and replace gas appliances with electric appliances because it will be less expensive.

Reactions are mixed.

Local State Senator Brian Jones says he’s cautiously optimistic, adding he anticipates electricity rates will continue to be a huge affordability issue, even under the new flat-rate proposal.

Commissioners are expected to take up the issue at a meeting in May.

If adopted, SDG&E would apply the changes late next year.