California Power Companies Proposing Income-Based Rates for Electric Bills

I recently noted that Los Angeles passed a “Mansion Tax” that had the elites in the area scrambling to sell their properties and contributing to the mass of “Left-ugees” now fleeing California.

The number of left-ugees will likely explode, fueled by the latest scheme now being proposed. Since California’s energy rates are skyrocketing, power companies propose income-based pricing in response to an Assembly bill.

If you live in California, your electricity bill could soon be affected by how much money you earn, and your bill will start to look different by 2025.Assembly Bill 205 was approved last year, and would break up customers’ bills, while at the same time giving customers relief on their rates. But, Kathleen Dunleavy with Southern California Edison said “This is not a new charge.”California’s three largest power companies – Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric – submitted a joint proposal to the Public Utilities Commission outlining a fixed rate restructuring that would be based on one’s income.

Here are the numbers being put forth for consideration:

Put simply, the more you earn the more you pay for recurring charges (not related to energy usage):

According to SCE, the fixed rate will cover “the costs of safely building, maintaining and operating the electric grid, of providing customer support, and the cost of state initiatives to help income-qualified customers and energy-efficiency programs.”

The price differentials may seem modest. But this is California we are talking about…so if this proposal is approved, expect even more income-based demands for services of all kinds.

And with other power options being regulated away, the sky is the limit to how high electric bills can go.

Utility customers statewide could feel a brutal financial squeeze as a result of California’s push to transition to a green energy state that depends more on electricity and less on natural gas. Plus, the state intends to phase out gasoline-powered vehicles in a shift to electric cars.The big problem with PG&E bills, however, is that there’s no limit to how quickly they can rise, in the view of Mark Toney, executive director of The Utility Reform Network, a consumer group that’s also known as TURN.“The problem is the sky’s the limit for how much PG&E can request for electricity and gas rates, and the sky’s the limit for what the PUC can approve,” Toney said. “We need to limit rate increases to the annual consumer price index.”

Of course, the supply tends to dwindle once the price is controlled.

But, then again, with enough left-ugees, the electric companies might be able to keep up with demand. That is, as long as they can find employees willing to work in California.

Tags: California, Energy, Environment

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