Sunday 11 June 2023

New California Law Will Base Electricity Bills on Income Level


Communist leader Karl Marx

“From each according to his ability, to each according to his needs.”

A new law in California will force those who make more money to pay more for their electricity.

Under the new rules, higher-income earners will pay seven times more than low-income earners.


CNET reported:

If you live in California, how much you pay for electricity will soon be tied to much you earn. A state law passed last summer requires the California Public Utilities Commission, or CPUC, to approve a pricing structure that incorporates a flat fee with a sliding scale based on income.

Currently, Californians pay for the energy they use and the cost of upgrading the grid, settling lawsuits related to wildfires and providing assistance to low-income customers is built into the per-kilowatt-hour price.

Under the new system, however, funds for these programs would come from “income-graduated fixed charges.”

It’s an unprecedented move: In an April blog post, energy economist Ahmad Faruqui said more than 170 investor-owned utilities nationwide incorporate a fixed rate — the median being $10 and the highest $40.

None has an income-based component.


Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric proposed a plan to charge customers based on income, not usage.

This was based on a new assembly bill that requires ‘simpler’ electricity bills.

Customers will see the new changes starting in 2025.

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