New Calif. Law Charges Extra for Power Based on Income

A new California public utility law designed to tax the rich will soon begin charging state residents a fee for electricity based on their income level.

Instead of paying for how much electricity they use, ratepayers will soon find their bills are based on how much money they make.

According to the Washington Examiner, the California Public Utilities Commission has until July 1 to implement the new rate structure.

"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 School of Business' Energy Transition initiative, told Fox Business.

"The problem here has been affordability," he said. "While California has focused almost completely on clean energy, it has disregarded reliability and affordability, and costs have continued to escalate. So, one of the [ways] they thought to address affordability [was], 'Let's just consider a tax and begin taxing people based on their income to address electricity rates.'"

Under the new law, people earning $28,000-$69,000 would be charged an extra $20 to $34 a month, while those earning $69,000-$180,000 would pay an extra $51 to $73 a month. People earning more than $180,000 would pay an extra $85-$128 a month.

"Since when does CA residents making $28k annually qualify as 'rich'?" Burton Brink, a retired sergeant from the Los Angeles County Sheriff's Department, posted on X. "Anytime a politician introduces a plan to 'tax the rich,' the middle class and under always pay the price."

According to Energy Sage, Californians already pay a premium for power, dropping 32 cents per kilowatt-hour compared to the national average of 18 cents per kilowatt-hour.

"The assumption is, Well, if you're making $100,000 in the state, you must be super-wealthy," Hiatt said. "But what if you have five or six kids? Will they be treated the same as a single head of household?"

Privacy and income verification issues reportedly still need to be worked out, and it's unclear who or which government agency would be responsible for obtaining residents' tax information to calculate their electric bills.

"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," Democrat state Rep. Jacqui Irwin said.

Irwin told Fox she voted in favor of the bill last year but changed her mind on it after her constituents raised questions of fairness.

"Our constituents have had enough, and so have we," she said. "It's time to put some reasoning back into how we charge for electricity in California."