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> While the rich household is using 10x more electricity, they're not paying 10x as much. So the poor are subsidizing the rich. The greater the base charges, th
by rconti 4y ago
> While the rich household is using 10x more electricity, they're not paying 10x as much. So the poor are subsidizing the rich. The greater the base charges, the more money taken from the poor and given to the rich.
You're correct about base fees, but your conclusion is incorrect.
PG&E power plans are tiered or at least have a baseline allowance. The baseline allowance gives you power that's roughly 8c/kWh cheaper, or about 20%. The more you use, the more of your usage is in the higher tier. It used to be a 4-tier system.
The only way this 'hurts' poorer families is in, say, a multi-generational household where people are home and using appliances all day vs a smaller family where it's more likely people are gone all day (at least, pre-pandemic). But of course, per-person, the more dense household is still paying less money for a given usage amount.