{"id":1917180,"date":"2023-04-20T11:11:51","date_gmt":"2023-04-20T15:11:51","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/californias-income-based-electric-bills-show-it-cares-more-about-control-than-climate\/"},"modified":"2023-04-20T11:12:05","modified_gmt":"2023-04-20T15:12:05","slug":"californias-income-based-electric-bills-show-it-cares-more-about-control-than-climate","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/californias-income-based-electric-bills-show-it-cares-more-about-control-than-climate\/","title":{"rendered":"California\u2019s Income-Based Electric Bills Show It Cares More About Control Than Climate"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcalifornias-income-based-electric-bills-show-it-cares-more-about-control-than-climate%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1917180&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"article-content\">\n<p>What\u2019s behind California\u2019s shift to paying for electricity based on income? In a few words, it\u2019s the consequence of California\u2019s futile fight against climate change.<\/p>\n<p>California\u2019s quixotic pursuit to save the planet by reducing greenhouse emissions has had three broad and irrefutable consequences. It has made energy more expensive; costlier energy has accelerated the deindustrialization of the state; and, the best irony of all, the offshored manufacturing has <a href=\"https:\/\/www.newsdata.com\/california_energy_markets\/regulation_status\/concerns-grow-over-carbon-leakage-in-california-s-food-processing-industry\/article_2ab8ad00-a9b7-11e9-bf96-dbd1f613aadd.html\" target=\"_blank\" rel=\"noreferrer noopener\">increased greenhouse gas emissions by pushing production to dirty, coal-fired China<\/a>, with goods then shipped back to California for consumption.<\/p>\n<div class=\"fdrlst__b89e9-paragraph-2-long d-flex justify-content-center\" style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"fdrlst__b89e9-413657701\">\n<div id=\"div-gpt-ad-1379703300879-0\" class=\"mb-30\"><\/div>\n<\/div>\n<div  class=\"fdrlst__b89e9-e303d90ca81b7fbe07ff15a43df4d647 fdrlst__b89e9-paragraph-2\" id=\"fdrlst__b89e9-e303d90ca81b7fbe07ff15a43df4d647\"><\/div>\n<p>The latest twist in California\u2019s arrogant tale of energy virtue signaling is playing out with a major restructuring in how Californians are charged for their electricity. For decades, consumers paid for electricity \u2014 as well as other utilities such as water and natural gas \u2014 with a tiered system that charged more for resources used above a baseline amount. For electricity, the <a href=\"https:\/\/www.pge.com\/en_US\/residential\/rate-plans\/rate-plan-options\/tiered-base-plan\/understanding-baseline-allowance.page\" target=\"_blank\" rel=\"noreferrer noopener\">baseline was determined by three things<\/a>: the consumer\u2019s use of electricity, the region, and the season.<\/p>\n<p>This system meant consumers who used a lot of electricity would pay far more for each kilowatt hour of that additional electricity than they would for their baseline allocation.<\/p>\n<p>This tended to hit lower-income consumers who ran their air conditioning too much, though the Golden State also has a separate program to reduce costs for low-income residents known as California Alternate Rates for Energy (CARE).<\/p>\n<p>But with California\u2019s electric prices pushing from where they\u2019ve traditionally been \u2014 about sixth-highest among the contiguous 48 states, behind New York and New England \u2014 <a href=\"https:\/\/www.eia.gov\/electricity\/data\/browser\/#\/topic\/7?agg=0,1&#038;geo=vvvvvvvvvvvvo&#038;endsec=vg&#038;linechart=ELEC.PRICE.TX-ALL.A~ELEC.PRICE.TX-RES.A~ELEC.PRICE.TX-COM.A~ELEC.PRICE.TX-IND.A&#038;columnchart=ELEC.PRICE.TX-ALL.A~ELEC.PRICE.TX-RES.A~ELEC.PRICE.TX-COM.A~ELEC.PRICE.TX-IND.A&#038;map=ELEC.PRICE.US-ALL.A&#038;freq=A&#038;ctype=linechart&#038;ltype=pin&#038;rtype=s&#038;maptype=0&#038;rse=0&#038;pin=\" target=\"_blank\" rel=\"noreferrer noopener\">to the second-highest in the nation after Hawaii last year<\/a>, costs on the working poor were rising too much. To paraphrase a colorful politician, \u201c<a href=\"https:\/\/citylimits.org\/2022\/10\/18\/the-rent-is-still-too-damn-high-catching-up-with-jimmy-mcmillan\/\" target=\"_blank\" rel=\"noreferrer noopener\">The electric bill is too damn high<\/a>.\u201d<\/p>\n<div  class=\"fdrlst__b89e9-dc070ff48c28ef1bd3f81b6d6f211622 fdrlst__b89e9-paragraph-6\" id=\"fdrlst__b89e9-dc070ff48c28ef1bd3f81b6d6f211622\"><\/div>\n<p>Thus, the California legislature last year passed <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billNavClient.xhtml?bill_id=202120220AB205\" target=\"_blank\" rel=\"noreferrer noopener\">Assembly Bill 205<\/a>, which mandated an end to the tiered system of electric rates and instituted in its place a system where each would pay according to his ability to help those in need. (Of course, it sounds better in the original German, \u201c<a href=\"https:\/\/en.wikipedia.org\/wiki\/From_each_according_to_his_ability,_to_each_according_to_his_needs\" target=\"_blank\" rel=\"noreferrer noopener\">Jeder nach seinen F\u00e4higkeiten, jedem nach seinen Bed\u00fcrfnissen<\/a>.\u201d) The bill goes into effect no later than July 1, 2024, with the stated aim that \u201clow-income ratepayers in each baseline territory would realize a lower average monthly bill without making any changes in usage.\u201d<\/p>\n<p>One unintended consequence of ditching the old baseline allocation scheme is all ratepayers, regardless of income, will now have far less incentive to conserve electricity, since each additional unit of electricity used will be priced the same, with overall prices reduced.<\/p>\n<h2 class=\"wp-block-heading\">Higher Income Will Pay More<\/h2>\n<p>In preparation for the rollout of the new electric charges, California\u2019s big, regulated utilities have proposed their new rate plans to the California Public Utilities Commission (CPUC). Depending on the provider, ratepayers would pay a fixed fee based on three household income tiers, plus charges for electricity use. Household income would be validated by a third party, likely the agency that collects the state income tax, the <a href=\"https:\/\/www.ftb.ca.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">California Franchise Tax Board<\/a>. <a href=\"https:\/\/ktla.com\/news\/local-news\/fixed-rate-electricity-bill-charges-how-they-would-work\/#:~:text=The%20new%20fixed%20rate&#038;text=Households%20earning%20%2469%2C000%20%E2%80%93%20%24180%2C000%20would,a%20month%20in%20PG%26E%20territory\" target=\"_blank\" rel=\"noreferrer noopener\">The three proposed household income tiers and their fixed rates are<\/a>: $28,000 to $69,000 \u2014 $20 to $34 a month, depending on the provider; $69,000 to $180,000 \u2014 $51 to $73 a month; and more than $180,000 \u2014 $85 to $128 a month.<\/p>\n<p><a href=\"https:\/\/www.census.gov\/quickfacts\/fact\/table\/CA\/BZA210220\" target=\"_blank\" rel=\"noreferrer noopener\">Median household income in California in the years 2017-2021 was $84,097<\/a>, meaning that an average California family could, under the proposed rate structure, pay a flat fee of $876 per year for their electricity while charges for kilowatt hours used would decline by 33-42 percent depending on the provider. The net effect would be an increase of about $90 a year for the average household and up to $750 more annually for higher-income households. Ironically, households living in homes with rooftop solar would see some of the highest increases in electrical costs under the new rate structure. Lower-income households are expected to see savings of up to $300 per year.<\/p>\n<div  class=\"fdrlst__b89e9-dff75ab1357173735b10b68ee26157f8 fdrlst__b89e9-paragraph-10\" id=\"fdrlst__b89e9-dff75ab1357173735b10b68ee26157f8\"><\/div>\n<h2 class=\"wp-block-heading\">Increasing Fees Rather Than Taxes<\/h2>\n<p>One big advantage to California policymakers of heavily regulating public utilities is the ability to use these energy and water corporations as de facto arms of the welfare state.<\/p>\n<p>California\u2019s Constitution requires a two-thirds majority to increase taxes, but a simple majority to increase fees. The CPUC\u2019s total control over California\u2019s utilities means state lawmakers can direct the CPUC to change its rate structures to take more from those earning more and give to those earning less \u2014 all without a penny flowing into or out of the state treasury \u2014 something that\u2019s particularly attractive today in a state that went from an almost $100 billion surplus last year to an expected <a href=\"https:\/\/santamariatimes.com\/news\/local\/state-and-regional\/california-s-budget-deficit-may-be-even-larger-than-predicted-dan-walters\/article_64c0967e-98ba-55a4-8e5d-483a5965e382.html\" target=\"_blank\" rel=\"noreferrer noopener\">$30 billion deficit this year<\/a>.<\/p>\n<p>And in that, the <a href=\"https:\/\/www.cpuc.ca.gov\/about-cpuc\/commissioners\" target=\"_blank\" rel=\"noreferrer noopener\">CPUC commissioners<\/a>, appointed by Gov. Gavin Newsom, are willing accomplices in the class struggle for fair electricity bills and energy justice. Of the five commissioners, four are attorneys, with backgrounds in \u201cenvironmental justice,\u201d air quality, low-income assistance, and climate change \u2014 electricity generation, not so much. Though the CPUC\u2019s <a href=\"https:\/\/www.cpuc.ca.gov\/about-cpuc\/cpuc-overview\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\">mission<\/a> is to ensure \u201cthat consumers have safe, reliable utility service at reasonable rates, protecting against fraud, and promoting the health of California\u2019s economy,\u201d it\u2019s clear now that all that really matters is figuring out how to shield low-income voters from the costly consequences of California\u2019s green energy crusade.<\/p>\n<p>Moreover, while the electrical pricing scheme may work as income redistribution social policy, it fails the test of reducing energy consumption \u2014 laying bare the fact that California policymakers care more about control than they do the climate.<\/p>\n<div  class=\"fdrlst__b89e9-a5c11e8c56422b70e643a31e98c985c8 fdrlst__b89e9-after-post-content\" id=\"fdrlst__b89e9-a5c11e8c56422b70e643a31e98c985c8\"><\/div>\n<hr class=\"wp-block-separator\">\n<div class=\"article-author-description fst-italic\">   Chuck DeVore is chief national initiatives officer at the Texas Public Policy Foundation, vice chairman of the Golden State Policy Council, a former California legislator, and a retired U.S. Army lieutenant colonel. He&#8217;s the author of <a href=\"\/\/www.amazon.com\/dp\/B0BGNKPTLR\">\u201cThe Crisis of the House Never United\u2014A Novel of Early America.\u201d <\/a><\/div>\n<div class=\"article-tags bdr-top-black mt-30 mt-sm-60 pt-15 pt-md-45\">\n<ul class=\"list-unstyled d-flex flex-wrap align-items-center mb-0 mx-n10 p-0\">\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/california\/\" class=\"btn btn-black btn-small\">California<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/california-franchise-tax-board\/\" class=\"btn btn-black btn-small\">California Franchise Tax Board<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/california-public-utilities-commission\/\" class=\"btn btn-black btn-small\">California Public Utilities Commission<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/climate-change\/\" class=\"btn btn-black btn-small\">Climate Change<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/coal\/\" class=\"btn btn-black btn-small\">coal<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/consumption\/\" class=\"btn btn-black btn-small\">consumption<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/deficit\/\" class=\"btn btn-black btn-small\">deficit<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/electricity\/\" class=\"btn btn-black btn-small\">electricity<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/energy\/\" class=\"btn btn-black btn-small\">Energy<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/gavin-newsom\/\" class=\"btn btn-black btn-small\">Gavin Newsom<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/income\/\" class=\"btn btn-black btn-small\">Income<\/a><\/li>\n<li class=\"mt-10 mx-10\"><a href=\"https:\/\/thefederalist.com\/tag\/redistribution\/\" class=\"btn btn-black btn-small\">redistribution<\/a><\/li>\n<\/ul><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What\u2019s behind California\u2019s shift to paying for electricity based on income? In a few words, it\u2019s the consequence of California\u2019s futile fight against climate change. California\u2019s quixotic pursuit to save the planet by reducing greenhouse emissions has had three broad and irrefutable consequences. It has made energy more expensive; costlier energy has accelerated the deindustrialization<\/p>\n","protected":false},"author":563,"featured_media":1917181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[3905,4036,3796,4321,4154,5340,24742],"class_list":["post-1917180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist","tag-bills","tag-californias","tag-cares","tag-climate","tag-control","tag-electric","tag-income-based"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1917180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/563"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1917180"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1917180\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1917181"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1917180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1917180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1917180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}