The new structure began to take effect in 2015 and will continue to roll out until Nu.s. it is intended to be simpler, to be more closely aligned with the actual costs of providing electric service and to provide customers with a clearer understanding of how their energy use impacts their monthly bill.
CHANGES IN 2015
Changes to tho Uered rate plan As of 2015, most customers were on a 4 tiered rate plan (El). On this plan customers could save money by using less energy and staying out of the higher-priced tiers. Since the energy crisis In 2001, price Increases were only allowed to be made to higher tiers (tier 3 and above), and the prices for tiers 1 and 2 remained stable. Over many years, this created a significant difference in the prices between the tiers. Our goal Is to gradually reduce the number of tiers from four to two and narrow the differences in prices among the tiers by the end of 2018. The end result will be a pric-ing structure that is simpler, mom easily understood and more closely aligned with the cost of providing electric service for all customers.
Tiered Price Adjustment:
In 2015, a her price adjustment was made by narrowing the difference in prices among tiers.
In September 2015, the monthly Minimum Bill Charge, which applies only to customers with very little or no energy use in a given month, was increased to $5 for customers enrolled in the California Alternative Rates for Energy (CARE) program and to $10 for all other residential customers whose monthly bill charge total is less than $10. Renewable energy customers are currently assessed the Minimum BIII Charge every month of the year. When the net annual True-up is calculated the customer may be refunded for all or part of the minimum charges paid, depending on how much energy Is actually used. Learn more about how the monthly delivery charge is calculated for renewable energy customers.
CHANGES IN 2016 AND BEYOND
Simplifying existing rates Reducing the number of tiers in the standard rate plan from 4 to 2 (reducing to three tiers in lune 2016 and to two tiers In 2017).
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