SACRAMENTO – In an effort to assist consumers struggling with increased energy costs, Assemblymember Jacqui Irwin (D-Thousand Oaks) today introduced legislation that would call for the repeal of the California Public Utilities Commission’s (CPUC) proposed income-graduated fixed fee.
The provision allowing for the charge was placed into Assembly Bill 205 (2022), a budget trailer bill that drew little attention at the time.
“At a time when energy conservation is badly needed to avoid rolling blackouts, this dramatic policy shift could actually result in increased usage by some Californians,” said Assemblymember Jacqui Irwin. “The CPUC has had the authority to implement a fixed rate charge, up to $10, since 2015, but has declined to do so. I see no need to rush now. We must allow affected ratepayers to weigh-in on this unprecedented new fee.”
The proposed income-graduated fee would require the CPUC to evaluate every ratepayer’s income annually in order to assess the appropriate fee, an administrative burden that is impractical and cost prohibitive.
One example of a strategy designed to reduce distribution grid upgrades was presented in a 2023 Public Advocates Annual Report. The study reported that “encouraging electric vehicle charging at optimal times could dramatically reduce necessary distribution grid upgrades and associated costs.”
The study went on to report potential savings of $26 billion dollars with rigorous planning and forecasting.
“Our constituents have had enough and so have we! It’s time to put some reasoning back into how we charge for electricity in California.”
“The new fixed utility charge is another decision that will unfairly burden ratepayers and further increase costs on working families,” said Assemblymember Connolly. “This proposal is both unjust to low energy using households and harmful to the important incentives to conserve energy at home. We cannot move backwards on California’s clean energy future.” — Assemblymember Damon Connolly (D-San Rafael)
Assemblymember Rebecca Bauer-Kahan (D-Orinda) called utility rates “too damn high”.
She added, “we are here because we have had enough and are ready to take action.” While saying she heard from many of my constituents who are struggling to pay their bills and we know that Bay Area residents are now burdened with some of the highest electricity rates in the nation.
Last November, the California Senate Republicans brought up this issue but were denied and sent a letter to Governor Gavin Newsom to collaborate on the flawed law that will increase utility costs as early as July 2024 due to the Utility Income-Based Fixed Charge.
Here is their release:
California Senate Republicans Continue Fighting Against Utility Income-Based Fixed Charge
Senate Minority Leader Brian W. Jones (R-San Diego) and members of the California Senate Republican Caucus delivered an urgent letter to Governor Newsom requesting that he join the caucus and 23 Democrat lawmakers to repeal, or substantially amend, a law authorizing a fixed-charge billing system for electricity bills based on household income. Click here to read the letter.
The income-based fixed charge was pushed by the supermajority party in a bill last legislative session. Senate Republicans coined the term ‘Hard Work Utility Tax’ for it because it is an unjust and regressive plan that fails to recognize the differences in energy usage among households and will unfairly burden low-income and struggling middle-class families.
“We are once again raising a red flag about the income-based fixed charge on electrical bills,” said Leader Jones. “Despite the supermajority initially pushing it forward, I’m glad to see 23 of my Democrat colleagues finally speaking out about how burdensome the fixed charge will be on Californians. Senate Republicans are inviting the governor to join us and work together in a bipartisan manner on fixing this poorly constructed billing system before it’s too late. The last thing Californians need is another charge that will make it harder for them to make ends meet, which is exactly what the ‘Hard Work Utility Tax’ will do.”
“The California Public Utilities Commission, a board made up of Governor appointees, just approved electricity rate hikes that will go into effect next summer, and it’s at the forefront of my mind as we head into the new year. Yet again, California is making a high quality of life unaffordable for the average family. As parents and families preparing for the holiday season, we shouldn’t have to worry about unexpectedly high utility bills in 2024,” said Senator Rosilicie Ochoa Bogh (R-Yucaipa).
Below is an excerpt of the letter and click here to download the entire letter.
… We are all supportive of efforts to stabilize and improve the safety of the grid and lower electricity rates for Californians. However, implementing a structured fixed-charge system that diminishes individual responsibility and usage in favor of an “identity” subsidization is not, in our opinion, an answer. More fees are not a solution to already ridiculously high utility bills. ….
BACKGROUND:
- In 2022, California Democrat legislators pushed forward Assembly Bill 205 (2022). Now law, the controversial AB 205 authorized members of the California Public Utility Commission (CPUC) to create an income-based fixed charge on utility bills.
- In April 2023, Leader Jones and the California Senate Republican Caucus raised the initial red flag to the CPUC expressing their concerns about AB 205. Click here to download the April letter.
- Following their April 2023 letter, Senate Republicans again tried to sound the alarm and repeal AB 205 in September 2023 with an amendment, which was ultimately defeated on party lines.
Editors Note
Back in April, Senate Republicans Blast Proposed Income-Based Utility Program
“The utility companies’ ‘fixed-charge’ proposal is nothing but a shameful attempt to exploit and rip off residential customers,’” said Senate Minority Leader Brian W. Jones. “Another name for this proposal could be the ‘Hard Work Utility Tax,’ as it is an unjust and regressive plan that fails to recognize the differences in energy usage among households and unfairly burdens lower-income families. California Senate Republicans are urging the CPUC to vigorously scrutinize and ultimately reject the utility companies’ plan to squeeze Californians even more.”
4 comments
Another reason, and a huge one at that!, for us to leave Taxifornia.
Many tens of thousands have already left, leaving all of us nervous about how Taxifornia is going to try to make up the difference since $H$U$G$E$’s are already being lost in significant amounts to both sharp decreases in property tax and sales tax being collected.
I am curious just how the CPUC is supposed to “evaluate every ratepayer’s income annually.” “Impractical” is too mild an adjective. “Idiotic” would be a better fit.
“evaluate every ratepayer’s income annually” 🤣🤣🤣 . CPUC should share with the State of California how they do this exactly. Maybe they get all the welfare scammers and lazy people off they system.
PG&E would have access to your tax records. What could possibly go wrong?
The lawmakers who are backing AB 205 should be drug tested.
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