Rates & Ratepayer Protections
6/12/25 @ 10:30AM
Conti Room
The Basics
What does This mean?
Costs for energy are rising and people are feeling the impact. EIA expects electricity costs to rise in 2025 - with larger increases in New England, California and the Southwest. They also project increased gas prices, due to higher gas demand.
Energy rates are used to calculate monthly electric and gas bills, which is a product of how much energy you use and the rate you are charged.
In regulated energy markets, utilities must get approval from Public Utilities Commissions to ensure rates are “reasonable”
Ratepayer protections ensure consumers have access to energy.
Average amount of time ppl look at energy bills for & large material impact of rates on peoples’ lives (energy burden)
we need to solve this higher up – at the policy level – cannot solve with just individual behavioral shifts
Recognize people’s views on utilities is expansive from business as usual to a whole sale change in utility ownership and regulation. For purposes of this session’s conversation we will largely stick within current utility/PUC construct although fine to of course envision larger changes
Why Does This Matter?
Different rate structures can support building electrification, especially in utility service territories with high electricity costs
Advocates can lower electricity cost for all ratepayers through advocacy at Public Utility Commissions
Without ratepayer protections, people will continue to see their electricity shut off, threatening their health and safety
Need to ensure building electrification saves money on bills to unlock financing options
How can this advance equitable building decarbonization?
Energy efficient heat pumps can reduce people’s energy bills in most areas of the country. Adjusting rate structures can help in the places where that is not the case.
Challenging rising electricity costs helps keep costs down
As we transition heating equipment from fossil fuels to electricity, ratepayer protections are critical to ensure everyone retains access to electricity.
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