Palo Alto's Utilities Advisory Commission is addressing a proposed average utility rate hike of $536 per year, mainly driven by a 22% increase in natural gas rates. To alleviate the financial impact, the commission suggests offering an on-bill credit of $73, funded by a reserve aimed at reducing greenhouse gas emissions. While the majority of commissioners support the idea to mitigate the rate hike, concerns arise about using green funds for fossil fuel subsidies. The proposal could reduce the rate hike from 11% to 9%, impacting the average customer's monthly bill significantly.
"In general, I don't support subsidizing gas," Commissioner Rachel Croft said at a meeting on Wednesday. "I only support the (reserve) used for this purpose just to decrease hardship - literally because the jump is so high in one year."
"It's a really huge increase, and I think we should mitigate that," Commissioner Greg Scharff said.
"I just don't support the use of green funds to subsidize the use of fossil fuels," Gupta said. The money comes from a "cap-and-trade" program, started by the state in 2013 as a day to fight climate change.
"It would be enough funding to fund whole-home electrification incentives for about 182 homes," Bilir said.
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