To: Board of Supervisors
From: Legislation Committee
Report Title: ADOPT a “SUPPORT” position on AB 1999 (Irwin)
☐Recommendation of the County Administrator ☒ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT a position of “Support” on AB 1999 (Irwin), a bill that would repeal provisions of Budget Trailer Bill AB 205 (2022) and instead permit the California Public Utilities Commission (CPUC) to authorize fixed charges on utility bills that are either $5/month for customers enrolled in rate assistance programs or $10/month for other customers.
FISCAL IMPACT:
There is no direct fiscal impact for the County from this bill; however, there are potential fiscal impacts for County residents who are PG&E customers.
BACKGROUND:
At their March 25, 2024 meeting, the Legislation Committee (Supervisors Burgis and Carlson) considered a recommendation to support AB 1999 (Irwin) from the County’s Sustainability Coordinator. As there is no existing policy in the Board’s adopted 2023-24 State Legislative Platform that relates directly to this bill, the Legislation Committee took action to recommend support of AB 1999 to the Board of Supervisors.
The new fixed fee on electricity bills based on household income was created as one part of the 2022 State budget process by Assembly Bill 205, which addressed a number of energy issues. AB 205 directed the California Public Utilities Commission (CPUC) to determine new fixed charges to be assessed by the investor-owned utilities to support operation of the transmission and distribution grid for electricity.
The CPUC opened proceedings in 2023 to develop the fixed fee. The proposals from the utilities have been controversial. For PG&E customers, the monthly fixed charge proposed by the utility ranges from $15/month for customers whose annual income is less than $28,000/year to $92/month for those whose annual income is greater than $180,000/year.
Currently, low-income utility customers can opt into two state programs titled the “California Alternate Rates for Energy (CARE)” and the “Family Electric Rate Assistance Program (FERA).” Low-income customers enrolled in the CARE program receive a 30-35% discount on their electricity bill and a 20% discount on their natural gas bill; FERA customers receive an 18% discount on their electricity bill.
In January 2024, several members of the Legislature introduced legislation that would reverse the requirement to establish a fixed charge and also allow the CPUC to look at other ways to pay for fixed costs and lower electricity rates.
AB 1999 (Irwin), introduced on January 30, 2024, would repeal the provisions of AB 205, and instead permit the CPUC to authorize fixed charges that are either $5/month for customers enrolled in rate assistance programs or $10/month for other customers. Other bills would repeal the fixed charge and do not discuss a different model. The bill was referred to the Assembly Committee on Utilities and Energy where it awaits a hearing.
See Attachment A for the text of AB 1999.
CONSEQUENCE OF NEGATIVE ACTION:
The Board will not have an advocacy position on the bill.