Ontario to cut hydro salaries

By Toronto Star


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The provincial government will adopt a system to cut the pay of new executives in Ontario's hydro sector by up to 30 per cent, the Star has learned.

Recommendations from a report prepared for Energy Minister Dwight Duncan on "fat cat" salaries in the industry will be implemented by the government, sources say. The report doesnÂ’t recommend a cap on salaries, which can top $1 million a year.

"The time for mulling it over is over," said a source familiar with the announcement.

Last year, the province's "sunshine list" of public-sector workers earning more than $100,000 included 7,000 workers at Hydro One, in charge of transmitting electricity in Ontario, and at Ontario Power Generation, which generates electricity.

A new formula will be used to calculate salaries and the cuts mean that new executive positions will come with salaries 25 to 30 per cent lower than at present.

The million-dollar-plus salaries became a political hot potato again last winter after a $3 million severance package was paid to former Hydro One chief executive Tom Parkinson – double his annual salary and bonus – when he left the Crown utility over expense account irregularities.

Concerned that pay levels were too high for publicly owned utilities, Duncan asked former Molson Inc. chief executive James Arnett to conduct a review of the sector, where executive pay ranges from $400,000 to $500,000 for the heads of B.C. Hydro and Hydro-Quebec to the $1.48 million earned by Ontario Power Generation boss Jim Hankinson.

NDP Leader Howard Hampton, who frequently uses the "fat cats" label, said the pay range shows salaries in Ontario are way out of line – with 15 executives in the province's public-energy sector making more than $470,000 a year.

However, some argue Ontario must pay more because it has a complex mix of electricity generation, including nuclear plants, where knowledgeable executives are in high demand – particularly during heat waves like the recent one.

"There are huge challenges in terms of managing a system that is adding new capacity," said Tom Adams of Energy Probe, noting that Ontario is looking to build more reactors for which "there is a very narrow pool of talent available."

The salary calculation formula will be based on levels throughout the electricity industry that is facing challenges worldwide as demand for power grows.

"It's a report that appears to balance the need for competitive compensation and responsibility to ratepayers," said another source.

However, Duncan said when the review was launched that reducing executive salaries wouldn't have much impact on electricity prices given that they are a relatively small component of the overall expense.

Existing contracts like Hankinson's at OPG, which doesn't expire until mid-2008, will not be affected.

"You just don't go in and rip up existing contracts," the source added.

Observers say the government has to walk a fine line on pay levels for fear of causing an exodus of expertise at a time when officials are importing power – and sometimes ordering brownouts at times of peak usage – because Ontario can barely make and import enough power to meet its needs.

The review by Arnett, expected to cost $300,000, has been attacked by opposition parties as an expensive way to neutralize a sensitive political issue in an election year.

Arnett is also looking at ways to reduce "overlap and duplication" at agencies created after Ontario Hydro was broken up in 1998.

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EIA: Pennsylvania exports the most electricity, California imports the most from other states

U.S. Electricity Trade by State, 2013-2017 highlights EIA grid patterns, interstate imports and exports, cross-border flows with Canada and Mexico, net exporters and importers, and market regions like ISOs and RTOs shaping consumption and generation.

 

Key Points

Brief EIA overview of interstate and cross-border power flows, ranking top net importers and exporters.

✅ Pennsylvania was the largest net exporter, averaging 59 million MWh.

✅ California was the largest net importer, averaging 77 million MWh.

✅ Top cross-border: NY, CA, VT, MN, MI imports; WA, TX, CA, NY, MT exports.

 

According to the U.S. Energy Information Administration (EIA) State Electricity Profiles, from 2013 to 2017, Pennsylvania was the largest net exporter of electricity, while California was the largest net importer.

Pennsylvania exported an annual average of 59 million megawatt-hours (MWh), while California imported an average of 77 million MWh annually.

Based on the share of total consumption in each state, the District of Columbia, Maryland, Massachusetts, Idaho and Delaware were the five largest power-importing states between 2013 and 2017, highlighting how some clean states import 'dirty' electricity as consumption outpaces local generation. Wyoming, West Virginia, North Dakota, Montana and New Hampshire were the five largest power-exporting states. Wyoming and West Virginia were net power exporting states between 2013 and 2017.

New York, California, Vermont, Minnesota and Michigan imported the most electricity from Canada or Mexico on average from 2013 to 2017, reflecting the U.S. look to Canada for green power during that period. Similarly, Washington, Texas, California, New York, and Montana exported the most electricity to Canada or Mexico, on average, during the same period.

Electricity routinely flows among the Lower 48 states and, to a lesser extent, between the United States and Canada and Mexico. From 2013 to 2017, Pennsylvania was the largest net exporter of electricity, sending an annual average of 59 million megawatthours (MWh) outside the state. California was the largest net importer, receiving an average of 77 million MWh annually.

Based on the share of total consumption within each state, the District of Columbia, Maryland, Massachusetts, Idaho, and Delaware were the five largest power-importing states between 2013 and 2017. Wyoming, West Virginia, North Dakota, Montana, and New Hampshire were the five largest power-exporting states. States with major population centers and relatively less generating capacity within their state boundaries tend to have higher ratios of net electricity imports to total electricity consumption, as utilities devote more to electricity delivery than to power production in many markets.

Wyoming and West Virginia were net power exporting states (they exported more power to other states than they consumed) between 2013 and 2017. Customers residing in these two states are not necessarily at an economic disadvantage or advantage compared with customers in neighboring states when considering their electricity bills and fees and market dynamics. However, large amounts of power trading may affect a state’s revenue derived from power generation.

Some states also import and export electricity outside the United States to Canada or Mexico, even as Canada's electricity exports face trade tensions today. New York, California, Vermont, Minnesota, and Michigan are the five states that imported the most electricity from Canada or Mexico on average from 2013 through 2017. Similarly, Washington, Texas (where electricity production and consumption lead the nation), California, New York, and Montana are the five states that exported the most electricity to Canada or Mexico, on average, for the same period.

Many states within the continental United States fall within integrated market regions, referred to as independent system operators or regional transmission organizations. These integrated market regions allow electricity to flow freely between states or parts of states within their boundaries.

EIA’s State Electricity Profiles provide details about the supply and disposition of electricity for each state, including net trade with other states and international imports and exports, and help you understand where your electricity comes from more clearly.

 

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BC Hydro rebate and B.C. Affordability Credit coming as David Eby sworn in as premier

BC Affordability & BC Hydro Bill Credits provide inflation relief and cost of living support, lowering electricity bills for families and small businesses through automatic utility credits and income-tested tax rebates across British Columbia.

 

Key Points

BC relief lowering electricity bills and offering rebates to help families and businesses facing inflation.

✅ $100 credit for residential BC Hydro users; applied automatically.

✅ Avg $500 bill credit for small and medium commercial customers.

✅ Income-based BC Affordability Credit via CRA in January.

 

The new B.C. premier announced on Friday morning families and small businesses in B.C. will get a one-time cost of living credit on their BC Hydro bill this fall, and a new B.C. Affordability Credit in January.

Eby focused on the issue of affordability in his speech following being sworn in as B.C.’s 37th premier, including electricity costs addressed by BC Hydro review recommendations that aim to keep power affordable.

A BC Hydro bill credit of $100 will be provided to all eligible residential and commercial electricity customers, including those who receive their electricity service indirectly from BC Hydro through FortisBC or a municipal utility.

“People and small businesses across B.C. are feeling the squeeze of global inflation,” Eby said.

“It’s a time when people need their government to continue to be there for them. That’s why we’re focused on helping people most impacted by the rising costs we’re seeing around the world – giving people a bit of extra credit, especially at a time of year when expenses can be quick to add up.”

Eby takes over as premier of the province with a growing number of concerns piling up on his plate, even as the province advances grid development and job creation projects to support long-term growth.

Economists in the province have warned of turbulent economic times ahead due to global economic pressures and power supply challenges tied to green energy ambitions.

The one-time $100 cost of living credit works out to approximately one month of electricity for a family living in a detached home or more than two months of electricity for a family living in an apartment.

Commercial ratepayers, including small and medium businesses like restaurants and tourism operators, will receive a one-time bill credit averaging $500 as B.C. expands EV charging infrastructure to accelerate electrification.

The amount will be based on their prior year’s electricity consumption.

British Columbians will have the credit automatically applied to their electricity accounts.

BC Hydro customers will have the credit applied in early December. Customers of FortisBC and municipal utilities will likely begin to see their bill credits applied early in the new year.

‘I proudly and unreservedly turn to the tallest guy in the room’: John Horgan on David Eby

The B.C. Affordability Credit is separate and will be based on income.

Eligible people and families will automatically receive the new credit through the Canada Revenue Agency, the same way the enhanced Climate Action Tax Credit was received in October.

An eligible person making an income of up to $36,901 will receive the maximum BC Affordability Credit with the credit fully phasing out at $79,376.

An eligible family of four with a household income of $43,051 will get the maximum amount, with the credit fully phasing out by $150,051.

This additional support means a family of four can receive up to an additional $410 in early January 2023 to help offset some of the added costs people are facing, while EV owners can access more rebates for home and workplace charging to reduce transportation expenses.

“Look for B.C.’s new Affordability Credit in your bank account in January 2023,” Eby said.

“We know it won’t cover all the bills, but we hope the little bit extra helps folks out this winter.”

Eby’s swearing-in marks a change at the premier’s office but not a shift in focus.

The premier expects to continue on with former premier John Horgan’s mandate with a focus on affordability issues and clean growth supported by green energy investments from both levels of government.

In a ceremony held in the Musqueam Community Centre, Eby made a commitment to make meaningful improvements in the lives of British Columbians and continue work with First Nations communities, with clean-tech growth underscored by the B.C. battery plant announcement made with the prime minister.

The ceremony was the first-ever swearing-in hosted by a First Nation in British Columbia.

“British Columbia is a wonderful place to call home,” Eby said.

“At the same time, people are feeling uncertain about the future and worried about their families. I’m proud of the work done by John Horgan and our government to put people first. And there’s so much more to do. I’m ready to get to work with my team to deliver results that people will be able to see and feel in their lives and in their communities.”

 

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Egypt, China's Huawei discuss electricity network's transformation to smart grid

Egypt-Huawei Smart Grid advances Egypt's energy sector with digital transformation, grid modernization, and ICT solutions, enhancing power generation, transmission, and distribution while enabling renewable integration, data analytics, cybersecurity, and scalable infrastructure nationwide.

 

Key Points

An Egypt-Huawei project to modernize Egypt's grid into a smart network using ICT, analytics, and scalable infrastructure.

✅ Gradual migration to a smart grid to absorb higher load

✅ Boosts generation, transmission, and distribution efficiency

✅ ICT training supports workforce and digital transformation

 

Egypt and China's tech giant Huawei on Thursday discussed the gradual transformation of Egypt's electricity network to a smart grid model, Egyptian Ministry of Electricity and Renewable Energy said.

Egyptian Minister of Electricity and Renewable Energy Mohamed Shaker met with Huawei's regional president Li Jiguang in Cairo, where they discussed the cooperation, the ministry said in a statement.

The meeting is part of Egypt's plans to develop its energy sector based on the latest technologies and smarter electricity infrastructure initiatives, it added.

During the meeting, Shaker hailed the existing cooperation between Egypt and China in several mega projects, citing regional efforts like the Philippines power grid upgrades, welcoming further cooperation with China to benefit from its expertise and technological progress.

"The future vision of the Egyptian electricity sector is based on the gradual transformation of the current network from a typical one to a smart grid that would help absorb the large amounts of generated power," Shaker said.

Shaker highlighted his ministry's efforts to improve its services, including power generation, transportation and grid improvements across distribution.

Li, president of Huawei Northern Africa Enterprise Business Group, commended the rapid and remarkable development of the projects implemented by the Egyptian ministry to establish a strong infrastructure along with a smart grid that supports the digital grid transformation.

The Huawei official added that despite the challenges the corporation faced in the first half of 2020, it has managed to achieve revenues growth, which shows Huawei's strength and stability amid global challenges such as cybersecurity fears in critical infrastructure.

In late February, Egypt's Ministry of Higher Education and Scientific Research and Huawei discussed plans to provide training to develop the skills of Egyptian university students talented in information and communications technology, including emerging topics like 5G energy use considerations.

 

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Doug Ford's New Stance on Wind Power in Ontario

Ontario Wind Power Policy Shift signals renewed investment in renewable energy, wind farms, and grid resilience, aligning with climate goals, lower electricity costs, job creation, and turbine technology for cleaner, diversified power.

 

Key Points

A provincial pivot to expand wind energy, meet climate goals, lower costs, and boost jobs across Ontario’s power system.

✅ Diversifies Ontario's grid with scalable renewable capacity.

✅ Targets emissions cuts while stabilizing electricity prices.

✅ Spurs rural investment, supply chains, and skilled jobs.

 

Ontario’s energy landscape is undergoing a significant transformation as Premier Doug Ford makes a notable shift in his approach to wind power. This change represents a strategic pivot in the province’s energy policy, potentially altering the future of Ontario’s power generation, environmental goals, and economic prospects.

The Backdrop: Ford’s Initial Stance on Wind Power

When Doug Ford first assumed the role of Premier in 2018, his administration was marked by a strong stance against renewable energy projects, including wind power, with Ford later saying he was proud of tearing up contracts as part of this shift. Ford’s government inherited a legacy of ambitious renewable energy commitments from the previous Liberal administration under Kathleen Wynne, which had invested heavily in wind and solar energy. The Ford government, however, was critical of these initiatives, arguing that they resulted in high energy costs and a surplus of power that was not always needed.

In 2019, Ford’s government began rolling back several renewable energy projects, including wind farms, and was soon tested by the Cornwall wind farm ruling that scrutinized a cancellation. This move was driven by a promise to reduce electricity bills and cut what was perceived as wasteful spending on green energy. The cancellation of several wind projects led to frustration among environmental advocates and the renewable energy sector, who viewed the decision as a setback for Ontario’s climate goals.

The Shift: Embracing Wind Power

Fast forward to 2024, and Premier Ford’s administration is taking a markedly different approach. The recent policy shift, which moves to reintroduce renewable projects, indicates a newfound openness to wind power, reflecting a broader acknowledgment of the changing dynamics in energy needs and environmental priorities.

Several factors appear to have influenced this shift:

  1. Rising Energy Demands and Climate Goals: Ontario’s growing energy demands, coupled with the pressing need to address climate change, have necessitated a reevaluation of the province’s energy strategy. As Canada commits to reducing greenhouse gas emissions and transitioning to cleaner energy sources, wind power is increasingly seen as a crucial component of this strategy. Ford’s change in direction aligns with these national and global goals.

  2. Economic Considerations: The economic landscape has also evolved since Ford’s initial opposition to wind power. The cost of wind energy has decreased significantly over the past few years, making it a more competitive and viable option compared to traditional energy sources, as competitive wind power gains momentum in markets worldwide. Additionally, the wind energy sector promises substantial job creation and economic benefits, which are appealing in the context of post-pandemic recovery and economic growth.

  3. Public Opinion and Pressure: Public opinion and advocacy groups have played a role in shaping policy. There has been a growing demand from Ontarians for more sustainable and environmentally friendly energy solutions. The Ford administration has been responsive to these concerns, recognizing the importance of addressing public and environmental pressures.

  4. Technological Advancements: Advances in wind turbine technology have improved efficiency and reduced the impact on wildlife and local communities. Modern wind farms are less intrusive and more effective, addressing some of the concerns that were previously associated with wind power.

Implications of the Policy Shift

The implications of Ford’s shift towards wind power are far-reaching. Here are some key areas affected by this change:

  1. Energy Portfolio Diversification: By reembracing wind power, Ontario will diversify its energy portfolio, reducing its reliance on fossil fuels and increasing the proportion of renewable energy in the mix. This shift will contribute to a more resilient and sustainable energy system.

  2. Environmental Impact: Increased investment in wind power will contribute to Ontario’s efforts to combat climate change. Wind energy is a clean, renewable source that produces no greenhouse gas emissions during operation. This aligns with broader environmental goals and helps mitigate the impact of climate change.

  3. Economic Growth and Job Creation: The wind power sector has the potential to drive significant economic growth and create jobs. Investments in wind farms and associated infrastructure can stimulate local economies, particularly in rural areas where many wind farms are located.

  4. Energy Prices: While the initial shift away from wind power was partly motivated by concerns about high energy costs, including exposure to costly cancellation fees in some cases, the decreasing cost of wind energy could help stabilize or even lower electricity prices in the long term. As wind power becomes a larger component of Ontario’s energy supply, it could contribute to a more stable and affordable energy market.

Moving Forward: Challenges and Opportunities

Despite the positive aspects of this policy shift, there are challenges to consider, and other provinces have faced setbacks such as the Alberta wind farm scrapped by TransAlta that illustrate potential hurdles. Integrating wind power into the existing grid requires careful planning and investment in grid infrastructure. Additionally, addressing local concerns about wind farms, such as their impact on landscapes and wildlife, will be crucial to gaining broader acceptance.

Overall, Doug Ford’s shift towards wind power represents a significant and strategic change in Ontario’s energy policy. It reflects a broader understanding of the evolving energy landscape and the need for a sustainable and economically viable energy future. As the province navigates this new direction, the success of this policy will depend on effective implementation, ongoing stakeholder engagement, and a commitment to balancing environmental, economic, and social considerations, even as the electricity future debate continues among party leaders.

 

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New Mexico Could Reap $30 Billion Driving on Electricity

New Mexico EV Benefits highlight cheaper fuel, lower maintenance, cleaner air, and smarter charging, cutting utility bills, reducing NOx and carbon emissions, and leveraging incentives and renewable energy to accelerate EV adoption statewide.

 

Key Points

New Mexico EV Benefits are the cost, grid, and emissions gains from EV adoption and optimized off-peak charging.

✅ Electricity near $1.11 per gallon equivalent cuts fueling costs

✅ Fewer moving parts mean less maintenance and lifecycle costs

✅ Off-peak charging reduces utility bills and grid emissions

 

What would happen if New Mexicans ditched gasoline and started to drive on cleaner, cheaper electricity? A new report from MJ Bradley & Associates, commissioned by NRDC and Southwest Energy Efficiency Project, answers that question, demonstrating that New Mexico could realize $30 billion in avoided expenditures on gasoline and maintenance, reduced utility bills, and environmental benefits by 2050. The state is currently considering legislation to jump-start that transition by providing consumers incentives to support electric vehicle (EV) purchases and the installation of charging stations, drawing on examples like Nevada's clean-vehicle push to accelerate deployment, a policy that would require a few million dollars in lost tax revenue. The report shows an investment of this kind could yield tens of billions of dollars in net benefits.


$20 Billion in Driver Savings

EVs save families money because driving on electricity in New Mexico is the cost-equivalent of driving on $1.11 per gallon gasoline. Furthermore, EVs have fewer moving parts and less required maintenance—no oil changes, no transmissions, no mufflers, no timing belts, etc. That means that tackling the nation’s largest source of carbon pollution, transportation, could save New Mexicans over $20 billion by 2050 because EVs are cheaper to charge and maintain than gas powered cars, and an EV boom benefits all customers through lower rates.

Those are savings New Mexico can bank on because the price of electricity is significantly cheaper than the price of gasoline and also inherently more stable. Electricity is made from a diverse supply of domestic and increasingly clean resources, and 2021 electricity lessons continue to inform grid planning today. Unlike the volatile world oil market, New Mexico’s electric sector is regulated by the state’s utility commission. Adjusted for inflation, the price of electricity has been steady around the dollar-a-gallon equivalent mark in New Mexico for the last 20 years, while gas prices jump up or down radically and unpredictably.

$4.8 Billion in Reduced Electric Bills

While some warn that electric cars will challenge state power grids, New Mexico can charge millions of EVs without the need to make significant investments in the electric grid. This is because EVs can be charged when the grid is underutilized and renewable energy is abundant, like when people are sleeping overnight when wind energy generation often peaks. And the billions of dollars in new utility revenue from EV charging in excess of associated costs will be automatically returned to utility customers per an accounting mechanism that is already in state law that requires downward adjustment of rates when sales increase. Accordingly, widespread EV adoption could reduce every utility customer’s electric bill.

Thankfully, New Mexico’s electric industry is already acting to ensure utility customers in the state realize those benefits sooner rather than later. The state’s rural electric cooperatives have proposed an ambitious plan to leverage funds available as a result of the Volkswagen diesel scandal to build a state-wide public fast charging network that mirrors progress as Arizona goes EV across the Southwest. Additionally, New Mexico’s investor-owned utilities will soon propose transportation electrification investments as required by legislation NRDC supported last year that Governor Lujan Grisham signed into law.

$4.8 Billion in Societal Benefits from Reduced Pollution

The report estimates that widespread EV adoption would dramatically reduce emissions of greenhouse gases from passenger vehicles in New Mexico, and also cut emissions of NOx, a local pollutant that threatens the health off all New Mexicans, especially children and people with respiratory conditions. The report finds growing the state’s EV market to meet New Mexico’s long-term environmental goals would yield $4.8 billion in societal benefits.

The Bottom Line: New Mexico Should Act Now to Accelerate its EV Market

Adding it all up, that’s more than $30 billion in potential benefits to New Mexico by 2050. Here’s the catch: as of June 2019, there were only 2,500 EVs registered in New Mexico, which means the state needs to accelerate the EV market, as the American EV boom ramps up nationally, to capture those billions of dollars in potential benefits. Thankfully, with second generation, longer range, affordable EVs now available, the market is well positioned to expand rapidly as the state moves to adopt Clean Car Standards that will ensure EVs are available for purchase in the state.

Getting it right

New Mexico has enormous amounts to gain from a small investment in incentives that support EV adoption now. For that investment to pay off, it needs to send a clear and unambiguous signal. Unfortunately, the same legislation that would establish tax credits to increase consumer access to electric vehicles in New Mexico was recently amended so it would not be helpful for 80 percent of consumers who lease, instead of buying EVs. And it would penalize EV drivers at the same time—with a $100 annual increase in registration fees, even as Texas adds a $200 EV fee under a similar rationale, to make up for lost gas tax revenue. That’s significantly more than what drivers of new gasoline vehicles pay annually in gas taxes in the state. Consumer Reports recently analyzed the growing trend to unfairly penalize electric cars via disproportionately high registration fees. In doing so, it estimated that the “maximum justifiable fee” to replace gas tax revenue in New Mexico would be $53. Anything higher will only slow or stop benefits New Mexico can attain from moving to cleaner cars.

To be clear, everyone should pay their fair share to maintain the transportation system, but EVs are not the problem when it comes to lost gas tax revenue. We need a comprehensive solution that addresses the real sources of transportation revenue loss while not undermining efforts to reduce dependence on gasoline. Thankfully, that can be done. For more, see A Simple Way to Fix the Gas Tax Forever.

 

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California's future with income-based flat-fee utility bills is getting closer

California Income-Based Utility Fees would overhaul electricity bills as CPUC weighs fixed charges tied to income, grid maintenance costs, AB 205 changes, and per-kilowatt-hour rates, shifting from pure usage pricing to hybrid utility rate design.

 

Key Points

Income-based utility fees are fixed monthly charges tied to earnings, alongside per-kWh rates, to help fund grid costs.

✅ CPUC considers fixed charges by income under AB 205

✅ Separates grid costs from per-kWh energy charges

✅ Could shift rooftop solar and EV charging economics

 

Electricity bills in California are likely to change dramatically in 2026, with major changes under discussion statewide.

The California Public Utilities Commission (CPUC) is in the midst of an unprecedented overhaul of the way most of the state’s residents pay for electricity, as it considers revamping electricity rates to meet grid and climate goals.

Utility bills currently rely on a use-more pay-more system, where bills are directly tied to how much electricity a resident consumes, a setup that helps explain why prices are soaring for many households.

California lawmakers are asking regulators to take a different approach, and some are preparing to crack down on utility spending as oversight intensifies. Some of the bill will pay for the kilowatt hours a customer uses and a monthly fixed fee will help pay for expenses to maintain the electric grid: the poles, the substations, the batteries, and the wires that bring power to people’s homes.

The adjustments to the state’s public utility code, section 739.9, came about because of changes written into a sweeping energy bill passed last summer, AB 205, though some lawmakers now aim to overturn income-based charges in subsequent measures.

A stroke of a pen, a legislative vote, and the governor’s signature created a move toward unprecedented income-based fixed charges across the state.

“This was put in at the last minute,” said Ahmad Faruqui, a California economist with a long professional background in utility rates. “Nobody even knew it was happening. It was not debated on the floor of the assembly where it was supposedly passed. Of course, the governor signed it.”

Faruqui wonders who was responsible for legislation that was added to the energy bill during the budget writing process. That process is not transparent.

“It’s a very small clause in a very long bill, which is mostly about other issues,” Faruqui said.

But that small adjustment could have a massive impact on California residents, because it links the size of a monthly flat fee for utility service to a resident’s income. Earn more money and pay a higher flat fee.

That fee must be paid even before customers are charged for how much power they draw.

Regulators interpreted legislative change as a mandate, but Faruqui is not sold.

“They said the commission may consider or should consider,” Faruqui said. “They didn’t mandate it. It’s worth re-reading it.”

In fact, the legislative language says the commission “may” adopt income-based flat fees for utilities. It does not say the commission “should” adopt them.

Nevertheless, the CPUC has already requested and received nine proposals for how a flat fee should be implemented, as regulators face calls for action amid soaring electricity bills.

The suggestions came from consumer groups, environmentalists, the solar industry and utilities.

 

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