Utility regulators in California on Thursday changed how most residents will pay for energy by adding a new fixed monthly charge and lowering the rates that apply to energy use.
Officials said the shift would reduce monthly bills for millions of residents and support the use of electric vehicles and appliances that run on electricity, rather than fossil fuels.
The decision by the California Public Utilities Commission will apply to the rates charged by investor-owned utilities, which provide power to about 70 percent of the state.
Starting next year, most customers of those companies will be required to pay a $24.15 monthly charge.
California’s residential electric rates, which averaged 31.2 cents per kilowatt-hour in February, are the highest in the country after Hawaii, where rates were about 44 cents, according to the federal Energy Information Administration.
Organizations:
California Public Utilities Commission, Regulators, Energy Information Administration
Locations:
California, Hawaii