California’s three major electric utility companies have put forth a proposal to implement a fixed-rate billing plan that would see high-income households pay more than low-income households. This proposal is a direct result of the Democrats’ latest ploy to exploit the hardworking, successful citizens of California. Governor Gavin Newsom and his Democratic cohorts are using energy utilities as their latest cash cow to fund their state’s crumbling energy infrastructure.
Under the guise of “fairness,” Newsom signed a bill last summer requiring energy utilities to include a “rate component” in their power bills to fund the state’s energy infrastructure. Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric have since introduced a proposal that would effectively reduce fees for most households by unfairly burdening wealthier families with higher costs. The California Public Utilities Commission must approve this plan by the middle of next year.
SDG&E CEO Caroline Winn claims to have listened to customers and is offering this proposal as a means of providing “bill relief.” But it’s clear that the Democrats have once again targeted hardworking Californians who live comfortably, forcing them to bear the brunt of their failed policies. This plan caters to those living paycheck to paycheck, overlooking the fact that the state’s wealthy residents have already contributed significantly to the state’s revenue.
The proposed fixed fees are tiered, with the lowest-income households paying the least and the wealthiest paying the most. This system appears to be an attempt to disguise the Democrats’ continuous push for wealth redistribution, making those who have achieved success pay more for basic utilities while others pay less. Local news outlets have published details of the plan, revealing the stark disparities in proposed fees based on income.
SCE CEO Steven Powell argues that an income-based fixed charge will benefit millions of customers, particularly those most in need of energy bill relief. However, this misguided policy is yet another example of the Democrats’ ongoing obsession with forcing successful Californians to foot the bill for their failed policies. The plan, Powell claims, would also make it easier for more Californians to afford clean energy technologies.
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The legislation cites California’s leadership in transitioning to a clean, reliable energy system, but conveniently ignores the fact that the state has struggled with grid disruptions due to climate change and other factors. Instead of focusing on finding sustainable solutions for the state’s energy infrastructure, Democrats have opted to squeeze more money from wealthier households.
California is already one of the most heavily taxed states in the country, with an effective tax rate of 13.5%. Its progressive income tax system ensures that wealthy households supply an outsized portion of state revenues relative to other households. This latest proposal from California’s electric utility companies, driven by Democratic policies, is simply another attempt to confiscate even more wealth from the state’s most successful residents.