California Utilities Seek to Charge People Based On Income, Not Energy Usage

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PG&E, Southern California Edison and San Diego Gas & Electric, the three major California utilities whose services include electricity, have filed a joint proposal with the state Public Utilities Commission that sketches out proposed changes in monthly bills.

At present, those bills are primarily based on how much electricity and gas customers consume.

A new proposal would add a fixed monthly charge that would be based on the household income levels of the respective customers.
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“The proposal recommends a qualified, independent state agency or third party be responsible for verifying customers’ total household incomes,” PG&E said in an emailed statement.

The state Public Utilities Commission will have to craft a final rate and billing structure for the three utilities. The PUC is due to make a final decision by July 2024.
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PG&E monthly bills could jump for many customers due to new state law

Customers for California’s three major power companies — including PG&E ratepayers — can expect to see some big changes in their monthly electricity bills.

www.siliconvalley.com

h/t:

https://mishtalk.com/economics/california-utilities-seeks-to-charge-people-based-on-income-not-energy-usage

Insane.

 

[Viking]

I’m White, so I’m neutral on this.

 

[Joe King]

Insane.

Just more of what the people they elect have always given them.

What's one more insane policy?

 

[brosil]

With a good accountant and law firm, you can look penniless and still live a rich life.

 

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Implementation of this scheme will raise both fairness and privacy concerns. California and the federal government already have progressive income tax systems and benefit programs that redistribute income from higher to lower earners. Using discriminatory energy prices to further income redistribution begs the question of whether other prices should be manipulated for the same purpose. For example, should food and clothing prices also vary based on income? Further, the income‐graduated scheme will compel utilities to collect income and family size information from their customers, which some will see as invasive.

The income‐graduated charge is an attempt to offset the consequences of previous state policies that have made electricity expensive in the Golden State. As the accompanying charts show, retail electricity prices are far higher in California than those in other large states and in neighboring far western states. Rates per kilowatt‐hour (kWh) in California are double those in Texas, Arizona, Nevada, Idaho, and Oregon—states that are receiving many immigrants from the Golden State.
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More (long):

https://www.cato.org/blog/california-tries-charging-electricity-based-income

 

[Ttazzman]

With a good accountant and law firm, you can look penniless and still live a rich life.

thats how i roll

 

[CiscoKid]

thats how i roll

Precisely.

 

[<SLV>]

With a good accountant and law firm, you can look penniless and still live a rich life.

Somehow I'm doing it backwards. We get by, but FAFSA says my daughters don't get any financial aid except for loans. (But we are white, married, college-educated, and our daughters are not gender-confused. All questions on the application.)

 

[OldGarandDad]

So now everyone will be transferring their utility accounts into the name of Grandma who is on social security or their kid who is in college to get the best rates. All legal too. California utilities will have the most indigent customers in the country with on-time payments.

 

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One further consideration: How would power companies keep track of the incomes of their customers? The utility companies want the state government to supply them with that information. But transferring and protecting such information would be a bureaucratic nightmare fraught with significant privacy concerns.
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California's latest tax-the-rich scheme: electric bills based on income

California's ill-advised income-based electric power plan amounts to another tax on the state's dwindling number of rich residents.

reason.com