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California lawmakers backpedal on income-based utility charges as IOUs, others propose alternatives

March 19, 2024

Some California lawmakers have proposed repealing a measure the legislature approved in 2022 that would protect low-income customers and beneficial electrification from electricity rates that are now the nation’s third highest.

The income graduated fixed charge, or IGFC, was proposed in a 2021 University of California white paper as a way to partially shift the funding source for some of the state’s public policies from its fast rising per kWh, or volumetric, power prices to income-based fixed charges. In 2022, Assembly Bill 205 ordered California regulators to implement the IGFC, the first U.S. income based rate design across all customer classes, but Assembly Bill 1999, introduced Jan. 30, would replace the original proposal with a significantly limited fixed charge.

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