Newsom Proposes Plan Potentially Raising Electricity Rates for Individuals Earning $28,000
California’s Progressive Electricity Billing Proposal
Gone are the days when your electricity bill was purely based upon the kilowatt-hours consumed. California is on the brink of a radical shift, where your earnings could play a major role in determining your monthly energy costs.
The New Billing Blueprint
- Individuals earning between $28,000 and $69,000 may see an increase of $20 to $34 monthly.
- Those with incomes ranging from $69,000 to $180,000 could face a hike of $51 to $73 each month.
- High earners making over $180,000 might incur a substantial $85 to $128 surcharge monthly.
“Since when does CA residents making $28k annually qualify as “rich”? Anytime a politician introduces a plan to “tax the rich,” the middle class and under always pay the price,” Burton Brink, former Sergeant-LA County Sheriff’s Dept, said on X.
The California Public Utilities Commission is tasked with weaving this new rule into the current billing system by July 1.
A Statewide First
“This would be the first state to charge people based on their income rather than what they actually just use,” Shon Hiatt, director of the USC Business of Energy Transition initiative, highlighted during his chat with Fox Business.
Californians are already shouldering high energy costs, with an average rate of 32 cents per kilowatt-hour versus the nationwide average of 18 cents.
“The assumption is, ‘Well, if you’re making $100,000 in the state, you must be super-wealthy,’” Hiatt questioned. “But what if you have five or six kids? Will they be treated the same as a single head of household?”
Concerns Over Privacy and Practicality
With the proposed changes, there’s a growing unease surrounding not just the burden on lower to middle-income families but also the flow of sensitive tax information. Determining each Californian’s income could become a battleground fraught with legal and privacy obstacles.
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“It would be nearly impossible to implement given the many legal and privacy challenges that there would undoubtedly be to accurately determine every taxpayer in the state’s income,” expressed Jacqui Irwin, a Democratic state representative. Initially pro the new law, she reversed her stance post-vote.
“Our constituents have had enough and so have we,” Irwin declared. She advocates for reintroducing logic to California’s electricity pricing, especially when energy saving is crucial to dodge rolling blackouts.
In the face of these upcoming changes, Californians could be facing an unexpected paradox: While crafted to promote equity, the new policy might just spike energy consumption rather than dampen it – a scenario few saw coming.
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