The California Public Utilities Commission unanimously voted today to move from a four tier system to a two tier system for electricity rates by 2019. That means low-use customers may start paying more, while customers in higher tiers may see a reduction in their bills. An additional surcharge for high-use customers will be introduced in 2017.
The commission says the new system will better reflect what energy actually costs. Critics of the decision say it reduces conservation incentives.
The commission delayed a proposal by utility companies for a fixed charge that consumers would pay regardless of their usage. That charge can be considered again after 2018.
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