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California power bills could soon be income-based with new proposal

April 17, 2023 | | Print Article

Woke California is looking to bill its denizens for utilities based on their income in yet another move to soak the rich, proposing a socialistic fixed-income rate depending on how much someone makes, not on how much someone consumes.

(Video Credit: ABC7)

Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric have all submitted a joint proposal to California’s Public Utilities Commission that proposes the new rate structure, according to KTLA5. It follows last year’s passage of Assembly Bill 205 which requires a fixed rate for utilities and simpler, more understandable bills.

“That law was intended to lower the amount that residential customers pay … while increasing transparency with bills,” Southern California Edison spokesperson Kathleen Dunleavy told KTLA on Friday. “This will provide relief to millions of customers.”

The proposed plan would split residents’ bills into two parts. The first part would be a fixed-income rate. The second would be a reduced usage charge that is based on consumption.

The tiered plan for a fixed-income rate breaks down into several categories.

The first level is for households that make less than $28,000 a year. They would be charged a flat rate of $15 a month on their electric bills under Edison and PG&E and $24 a month under SDG&E.

The second level is for households that make between $28,000 and $69,000 a year. They would pay $20 a month under Edison, $34 a month under SDG&E, and $30 a month under PG&E.

The third level is for those households earning between $69,000 and $180,000 a year. They would pay $51 a month under Edison and PG&E and $73 a month under SDG&E.

The top level would apply to those making more than $180,000 a year. They would reportedly pay $85 a month under Edison, $128 a month under SDG&E territory, and $92 a month under PG&E.

Southern California Edison claims that somewhere around 1.2 million of its lower-income customers will see their bills drop by 16%-21%.

“We have listened to and heard from our customers that fundamental change is needed to provide bill relief,” SDG&E CEO Caroline Winn proclaimed in a statement.

The Marxist proposal is aimed at getting the rich to pay their “fair share” for the same power consumption.

“When we were putting together the reform proposal, front and center in our mind were customers who live paycheck to paycheck, who struggle to pay for essentials such as energy, housing, and food,” the statement added.

The California Public Utilities Commission still has to approve the proposal and make a final decision by mid-2024 but it is likely to get the green light. The fixed rate could start showing up on bills as soon as 2025.

Although the move smacks of socialism, in a way it will benefit wealthier individuals as they are experiencing skyrocketing power bills in order to charge their electric vehicles at home. Of course, California is now mandating that everyone in the state transition to electric vehicles that most cannot afford in the next few years.

It is hard to understand how this will end well for anyone and the utility companies may in the end wind up being state-owned or going out of business entirely since fixing the rates will most likely not allow them to cover their own costs. There is also the strong possibility that there is a catch in the legislation. If it sounds too good to be true, it probably is, especially when it comes to things like utilities.

 

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