New California Law Imposes Additional Charges for Electricity Usage Depending on Income

A new California public utility law is set to tax the rich by charging state residents a fee for electricity based on their income level.

Instead of being billed based on electricity usage, ratepayers will now see their bills determined by their income.

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

“This would be the first state to charge people based on their income rather than what they actually just use,” explained Shon Hiatt, director of the USC School of Business’ Energy Transition initiative, in an interview with Fox Business.

Under the new law, individuals earning $28,000-$69,000 will face an additional charge of $20 to $34 a month, while those making $69,000-$180,000 will see an extra $51 to $73 added to their monthly bill. Those with incomes over $180,000 will pay an extra $85-$128 per month.

Responding to the news, Burton Brink, a retired sergeant from the Los Angeles County Sheriff’s Department, expressed his concerns on Twitter, questioning why individuals making $28k annually are considered “rich.”

Already paying a premium for power, Californians currently have an average rate of 32 cents per kilowatt-hour compared to the national average of 18 cents per kilowatt-hour, according to Energy Sage.

There are still privacy and income verification challenges to address, including determining who will be responsible for obtaining residents’ tax information to calculate their electric bills.

Concerns have been raised about the fairness of the new law, prompting Democrat state Rep. Jacqui Irwin to change her stance after voting in favor of it last year.

“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.”