income graduated fixed charge

We Need a True Debate Over Income-Graduated Fixed Charges

A state bill to cap the fixed charges utilities can collect in California would shut down an important debate about equity and rate design. Here’s a better way forward.

Electricity rate design is unavoidably technical. It also has huge implications for equity, climate change, and ensuring a grid that works. Rate design can be used to promote many different goals, from efficiency to bill stability, but it always entails distributive decisions. Rate design determines how we distribute the costs not just of electricity, but …