If the CA government thinks we should have this kind of pricing or means-based support of the utilities, I think they should design it into the income tax code and provide subsidies to the utility from collected tax revenue.
An alternative might be to extend current CARE, FERA, and Medical Baseline Allowance programs to extend discounts or payment assistance for households in need. But I think these programs may also be flawed in that they endanger the privacy of those needing assistance. The state tax board already has the necessary data and the state should not be supporting the creation of additional parallel systems.