“The rich will do anything for the poor but get off their backs.” - Karl Marx
As if we don't have enough to worry about, the economy, the border, crime, inflation high grocery and gas prices; California has a new Hell they are going through. Even
Democrats are digging their heels in at the new legislation "to make the rich pay more for electricity in the name of fairness and equity. 1 It is amazing to me how creative the Democrats can be when it comes to spending other people's money. One of the favorite tools the Libs have is making: "the rich pay their fair share". As Bennie Sanders puts it, "Why do the rich pay a lower tax rate than the working class people?" We should all know the rich pay the lion's share of taxes and they get a lower rate because they must pay so much more than middle income and the poor.
Getting back on topic, The legislation has passed the California Legislature and signed into law by Governor Gavin Newsom. (AB 205) The California Public Utilities Commission must set the new guidelines for who will pay what by July 1.
There are three big electric companies in California, Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric. The electric companies want to have a tiered billing structure. Here is a sample of how customers would be billed:
“Households earning $28,000-$69,000 would be charged an extra $20 to $34 per month. Those earning $69,000-$180,000 would pay $51 to $73 per month, and those earning more than $180,000 would pay a $85-to-$128 monthly surcharge,” Fox Business reported. 2
Democrats who voted for the bill last year got a lot of feedback from angry constituents. Households with incomes of $100.000.00 are not necessarily wealthy. What if they care for several children or aged parents? Using income to determine price should not be the way to set fees. In a capitalistic society cost plus a reasonable profit sets the price. Otherwise, new competition will sneak in and take over the market. I know, the electric companies are a monopoly so they can get away with a lot. The Public Utilities Commission still oversees the electric companies so they can't get too frisky with their prices.
How will the utilities know how much their customers earn? Will the figure be before or after deductions? How will the utilities get the information? Will it be the honor system or will they get to see the state income tax figures? What if you do not work? What if you do not show any income?What if you are maxed out on all your credit and do not have the extra income to pay the electric bill? What if you are illegal and pay no taxes? You can see this is a mess and it will be a dozy to figure out. Good luck with that California.
Governor Newsom is under fire for pushing this through the Legislature with no debate. Umm, something stinks here. Newsom is on the path to eliminating carbon emissions by 2045.
"The California Independent System Operator said $9.3 billion is needed over the next decade to support the state’s shift to renewable energy and plug-in cars." 3
I have lived in California. It gets cold in the winter and hot in the summer. Old people and retirees will be hit hard by their new fees. On top of all the other high fees and expenses, this woke agenda is going to make it difficult for everyone to pay their electric bills unless they are wealthy. Even the rich do not like to be screwed by the government. Look for some fireworks in California. Some folks who voted for this may find it challenging to get re-elected.
Resources
1. Staff Writer for RenewedRight.com, Democrats are revolting against Gavin Newsom after he made this unthinkable decision, RenewedRight.com, March 21, 2024, https://renewedright.com/democrats-are-revolting-against-gavin-newsom-after-he-made-this-unthinkable-decision/
2. Ibid
3. Lee, Medora, California wants to make electricity more affordable for poor people by charging rich more, USA Today, June 21, 2023, https://www.usatoday.com/story/money/personalfinance/2023/06/20/california-electricity-bills-income-based/70331875007/
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