California's experience with lifeline gas rates
A year's experience with lifeline utility rates - that is, a base rate for small residential gas and electricity users that cannot be increased until the average system rate in cents per therm or per kilowatt-hour increases 25% or more over the January 1, 1976 level - has shown California gas utilities that by insulating 20 to 50% of their customers from rate increases, other gas customers of all classes and sizes (including residential users above lifeline quantities) experienced rate increases as high as 70% to subsidize the savings made by lifeline customers. Southern California Gas Co., for example showed 23.2% of its sales going to lifeline users and an overall system rate increase of 28.3%. The resulting burden to the nonlifeline users was a 44.5% rate increase. California's present lifeline coverage provides too little benefit for too many customers to accomplish its purpose with efficiency. The subsidy burden on other users is much greater than would be required if adequate benefits could be better directed and limited to the low-income energy consumers that really need them.
- OSTI ID:
- 6281788
- Journal Information:
- Gas Ind., Nat. Gas Ed.; (United States), Journal Name: Gas Ind., Nat. Gas Ed.; (United States) Vol. 22; ISSN GINGA
- Country of Publication:
- United States
- Language:
- English
Similar Records
Lifeline and incremental cost residential electric rates
Calculating impact of lifeline rates
Related Subjects
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GAS UTILITIES
GASES
NATURAL GAS
PRICES
PUBLIC UTILITIES
RATE STRUCTURE