California Utilities Seek to Charge People Based on Income, Not Energy Usage

Yep, you are correct -- this is a form of subsidies. Other countries do this (or used to do this) with things like long distance and local telephone charges. Higher income regions (although this is not based on income but on region) would pay more, but remote places will pay almost zero.

"... PG&E, Southern California Edison and San Diego Gas & Electric filed a joint proposal with the state Public Utilities Commission seeking to add a fixed monthly charge for services, based on household income levels.

This fixed-rate plan would reduce monthly bills for low-income customers and if electricity usage is controlled, bills would also be lowered. It would cost as little as $15 a month for low-income households and up to $85 more per month for households making more than $180,000 a year. ..."

California already has CARE discounts for low-income households [0]. Why do we need this income-derived base rate? How will it even be determined without invading privacy?

At least CARE is opt-in, like SNAP benefits, where you necessarily compromise your privacy to demonstrate your low-income status.

[0] https://www.cpuc.ca.gov/consumer-support/financial-assistanc...

So the marginal costs are market-based and the fixed fees (grid maintenance & grid upgrades & company bureaucracy) are income-based. Sounds okay in principle.

Are you sure that this move isn't profit neutral?