And you thought the State of California wants you to save electricity. Apparently not, because since 1976 they’ve been giving “All Electric” homeowners a huge break on their electric bills.
Last year, after Thanksgiving, I put up Christmas lights. My SDG&E bill dated Dec 17th was $380.00, $200.00 more than usual. The main factor contributing to this dramatic increase is the tiered rate structure and my excess usage over 200% of baseline. I investigated “baseline” and found that it was a variable number depending on the type of primary heat source I have in my home. Parts of my home have electric wall heaters, but the furnace is propane, and consequently my baseline is set at 442 kWh. Now here’s the rub. According to SDGE’s baseline calculator, if my house had “primary” electric heat my baseline would be 912 kWh, and my bill would have been $260.00, 32% less. SDG&E says this is the way the California Public Utility Commission (CPUC) sets the rates. I submitted a complaint to the CPUC and they responded with a letter which did nothing more than acknowledge that electric baselines are adjusted based upon a residence’s primary heat source.
With all of the emphasis from utilities and government to reduce and make efficient use of electricity, it seems outrageous that the State would essentially subsidize electric homes. I really wanted to know how the State justifies this policy and if there is any legislative action being taken to correct the inequity. So, I wrote to my State Representatives seeking an answer.
Assembly Member Brian Jones’ office ignored my request. However, Senator Joel Anderson’s office was very responsive and helped me get a better answer out of the CPUC. The CPUC responded as follows:
Dear Mr. Swysgood,
The 1976 Warren-Miller Lifeline Act established the baseline statute (CAL PUC Code § 739)in response to the energy price spikes of the late 70s. The baseline statute is meant to provide an energy allowance for basic energy needs at a lower rate and sets baseline amounts between 50-70% of average household consumption.
The statute specifies that “The commission shall designate a baseline quantity of gas and electricity which is necessary to supply a significant portion of the reasonable energy needs of the average residential customer. In estimating those quantities, the commission shall take into account differentials in energy needs between customers whose residential energy needs are currently supplied by electricity alone or by both electricity and gas. The commission shall develop a separate baseline quantity for all-electric residential customers. For these purposes, “all-electric residential customers” are residential customers having electrical service only or whose space heating is provided by electricity, or both. The commission shall also take into account differentials in energy use by climatic zone and season.”
The statue takes into account that ‘basic energy needs’ can vary by ratepayer. Baseline amounts vary by climate zone and season because the amount of energy required to stay reasonably cool in the hot inland areas of the state is larger than the amount needed in coastal areas. There are baseline amounts for natural gas as well, which are larger during the winter in areas such as Eureka and Truckee where more heating is required than in the summer in areas like San Diego. With this in mind, the larger baseline for all-electric customers takes into account that the amount of electricity required to meet basic energy needs (such as heating in the winter) is larger than in a home with natural gas heating.
Considering the baseline amounts for natural gas (which can be found on the website of your gas provider), it is possible that an average all-electric customer pays roughly the same amount per month or more than an average electric and gas customer since the all-electric customer uses much more electricity and ends up in higher tiers.
As for whether all-electric homes are a bad choice, I can only say that the vast majority are artifacts of the 1950s and 60s when ideas about electricity consumption were very different and some of them may not even be on or near gas lines. This may have been the reasoning of the Lifeline Act’s authors but I can only speculate.
This allowance for all-electric customers was written into the statute, and as state law, the CPUC is required to uphold the statute and create baseline amounts for all-electric customers. It is beyond our jurisdiction and a matter for the legislature to decide whether it is reasonable or should change. The CPUC reviews the baseline program in each utility’s rate case and adjusts the amounts considered basic.
Wow! Gotta love the bureaucracy.
Senator Anderson’s office encouraged me to submit a legislative proposal and sent me the appropriate forms to fill out. That proposal is here.
I don’t expect anything to come of this, but wouldn’t it be great if the system worked and we repealed this insane law. We’ll see.
Regardless of the outcome of my efforts, you should be outraged that you are paying more for electricity because your government wants to give a break to this special class of homeowners.