Jim Desmond: SDGE fixed rate proposal is “socialism at its finest”

SAN DIEGO (KUSI) – A recent proposal by California electric companies would break up monthly charges by the amount of energy used and the income of the household.

SCE, PG&E, and SDG&E submitted a joint proposal to the California Public Utilities Commission which outlined a fixed-rate restructuring based on household income. In short, higher income earners would be charged more than those who make less than them.

The proposal comes as a result of the passage of AB 205, which requires a fixed-rate and the provision of simpler power bills for customers.

Currently, SDG&E customers pay for how much electricity their household uses, and how that electricity is delivered. Prices vary month-to-month on both of these costs.

SDG&E’s newly proposed fixed-rate plan aims to offer residential customers a fixed delivery rate every billing cycle, no matter how much electricity is used. The utility companies who came up with this proposal have created four different tiers of income levels:

If your household makes $28,000 or less per year, your fixed monthly delivery fee would be $24

$28K-$69K, fixed monthly delivery fee would be $34

$69K-$180K, fixed monthly delivery fee would be $73

$180K or more, fixed monthly delivery fee would be $128

Supervisor Jim Desmond calls the proposal ‘socialism’. He joined KUSI’s Rafer Weigel to discuss the matter.