Establishing Income Based Fixed Charges in California
Synapse assisted The Utility Reform Network (TURN) and Natural Resources Defense Council (NRDC) in understanding the impacts of income graduated fixed charge proposals. Synapse wrote a white paper that provided an overview of core principles of rate design and what should be considered when establishing how and to what extent, a fixed charge is appropriate to be included in residential rate design. This is spurred by legislative action allowing for higher residential fixed charges in California, subject to a number of provisions and considerations. The impact of rate design on customer behavior and its effect on various policy goals is substantial and requires careful consideration. This paper offers an overview of these key considerations.