A new law is on the books in California. One that is full Marxist. You see, utility companies plan to charge their customers based upon their INCOME levels.

A new state law requires utility companies in California to come up with a fixed rate plan, as a way to help stabilize rates and make billing more equitable.

Those plans were due on April 7.

SDG&E, along with Pacific Gas & Electric and Southern California Edison, teamed up and a proposal to charge people based on their income.

Currently, you not only pay for how much electricity your household uses, but other things such as how that electricity is delivered.

Both prices vary month to month.

There’s that word “equitable” again. Which is another way of saying ‘we want to make everything FAIR for everyone with a side of virtue signaling on climate change! Yup, as I said above. Very Marxist of the California legislature. 

Which ignores some very salient issues regarding the consumption of electricity. Different sized homes/townhomes/apartments/condos use differing amounts of electricity all the time. So, OF COURSE, rates will be different no matter who lives there and no matter the income of the resident(s)! 

Oh, but the progressive legislature doesn’t care about such trifling matters as that. No. Everything needs to be fair and equitable. Which has led to the utilities coming up with this proposal. 

Households earning less than $28,000 a year would pay a fixed charge of $15 a month on their electric bills in Edison and PG&E territories and $24 a month in SDG&E territory.

Households with annual income from $28,000 to $69,000 would pay $20 a month in Edison territory, $34 a month in SDG&E territory and $30 a month in PG&E territory.

Households earning from $69,000 to $180,000 would pay $51 a month in Edison and PG&E territories and $73 a month in SDG&E territory.

Those with incomes above $180,000 would pay $85 a month in Edison territory, $128 a month in SDG&E territory and $92 a month in PG&E territory.

Those rates don’t seem so bad, do they? Oh, but there is an additional catch. You see, the fixed rate only applies to the income of the resident. There WILL be a usage charge. One that “could” be reduced if no one in the house uses electricity! 

There are a plethora of reasons why this is a bad idea. 

A. It will literally incentivize people to hide their income levels in order to get that lower fixed rate. 

B. It penalizes people for having the audacity to make more money than others which could lead to item A. 

C. Because the usage charge isn’t fixed, it will be an issue for people whose homes have a larger footprint than others.

And that’s just the start of the issues! As we’ve written about many times, California utility companies are a train wreck. Major fires have been started by downed power lines nearly every year. Brown outs and black outs roll across the state due to the power grids inability to handle consumption during days of high heat or biting cold. Last year Newsom and the utility companies asked people to NOT charge their electric vehicles because the grid couldn’t handle it. 

There are a few other things wrong with this proposal. Supposedly this plan isn’t about profit for the utility companies. Uh huh. Pull the other leg. Also, who will determine what customers get what fixed rate? OH. 

“We don’t want customers’ financial information. Customers don’t want provide us their financial information. So, our perspective is the state is very capable to be able to do this and send us the data that’s needed to get the customers into the right buckets,” said Crider.

What could POSSIBLY go wrong with THAT plan?

https://twitter.com/jeffnolan/status/1647933588636041216

https://twitter.com/jeffnolan/status/1647951965802905601

Exactly. 

And, can we say major government overreach? Why yes, yes we can. 

I know how to deal with this… pic.twitter.com/Mt1D8vOSKP

— Fortune (@Rich_Blessings) April 16, 2023

Basing rates on income is a bad plan all the way around. One that involves significant government intrusion all in the name of being FAIR. 

What’s next, a proposal for supermarkets that can charge you based on your income for bread and eggs? Also, Best Buy should charge you for a new phone based on your earnings. Airline tickets? There can be three tiers based on earnings.

Given the Marxists running California right now, those rhetorical questions will probably seem like GREAT ideas very soon. 

Gavin Newsom is gallivanting all over the United States right now blathering about how BAD the red states are. Meanwhile, California’s population is dwindling because of asinine policies like this one. Want to see MORE people leave California Gavin? This is how. 

Feature Photo Credit: Lightbulb money sun via iStock photo, cropped and modified