Posted on 05/10/2024 4:58:41 PM PDT by george76
Millions of middle-class California households are poised to pay an extra $24 per month for electricity, regardless of how much electricity they use. Regulators are hoping this utility billing policy will rescue their agenda to move everyone to electric cars and appliances by redistributing the massive costs of the state’s electric grid so utilities can lower their usage rates.
But critics say the income-based premium will likely further hike utility costs for millions of Californians—nearly one-fifth of whom are already behind in paying their bills after household electricity rates almost doubled in the last decade—and likely won’t do much to cut the state’s sky-high electricity rates. The premiums are supposed to subsidize lower-income household electricity costs, which will be reduced by 5 cents to 7 cents per kilowatt hour, in a bid to make charging EVs and using electric heaters and appliances cheaper.
The policy comes as California Democrats struggle to reconcile their goals of ridding the state’s energy grid of fossil fuels in favor of costly wind and solar—a push that has led to massive spikes in electricity costs—while also forcing households to swap gas cars and appliances for electric versions.
But critics say the price-per-kilowatt hour reduction plus the premium won’t move the needle on making it more affordable for Californians to replace their fossil fuel use with electricity. Analysis from the pro-renewable energy group Clean Coalition said the lower rate still can’t compete with "modern high efficiency gas appliances" and won’t come close to justifying the expense of replacing them.
"It’s not going to bring down the rate enough to improve the economics of electrification," said Jenn Engstrom, state director for the California Public Interest Research Group.
The premium could hit Californians as soon as next year. California households that don’t qualify for subsidies—those earning $62,150 for a family of three—will be charged the additional $24 per month. Lower-income households will pay fixed fees ranging from $6 to $12 a month depending on their income.
The policy has been criticized by the public, advocates, and politicians spanning the political spectrum, and comes as Californians already pay the second-highest rates in the nation behind Hawaii. Ahead of the final vote, residents said their electricity costs have already "exceeded the level of tolerance" and they can’t afford another increase. Others complained that switching to solar power promoted by the state has led to higher bills. It is backed by the state’s major utility companies as a way to help fund the costs of electrifying their grid and following California’s energy mandates.
State regulators said the policy will lower people’s bills while boosting California’s electrification agenda.
"This billing adjustment makes it cheaper across the board for customers to charge an electric vehicle or run an electric heat pump, which will spur greater uptake of these technologies that are essential to transitioning us away from fossil fuels," California’s utility commission president Alice Reynolds said in a prepared statement.
Governor Gavin Newsom (D.) has stood by the policy, saying it will help fight "climate change" by encouraging people to convert move to EVs and electric appliances. The rule was mandated by a provision tucked into a sprawling state budget bill passed in 2022.
“Joe says ‘they have the money.’”
Wait until the sun rises again in the eastern US.
I have spent very little time in California. But I feel that I understand why it was viewed as a place to go.
Big. Beautiful. Ocean. Mountains. Cities. Wealth. Roads. Cars. Weather. Forests. History. Industry. Culture. Coastline. Wealth.
They are trying their hardest to kill it. And succeeding. I wish I had been there back in the 50’s. A lot going on.
Damn them. Damn them all. Every damn thing they touch turns to shit.
Everything.
My wife and I are in our mid 80’s.
About a decade plus, we decide to stay where (Age in place), we live with good neighbors and in a great place.
We spent 20 K+, having our home retroed to handle the hot spells and cold spells. For example, it is now 95 degrees outside and inside without AC, we have a comfortable 75.
With the annual price increases, our monthly bill in spite of the above is averaging $350 to $450 per month. Our home is constantly in the most efficient 10% of similar size homes.
As an example, now, the outside temp is 92-95, and it is 75 in our family room and our living/eating area. The outside temp will drop to 72 by bedtime.
The California “green” agenda is itself a significant reason California electric ultiity rates are the 5th highest in the nation.
A few of the causes:
1. Electricity providerers are required by law in Callifornia to obtain X % of their electricity from more expensive “renewables” like wind and solar, though less expensive wholesale sharing on the grid is available.
2. Rooftop solar is an additional cost born by everyone who uses the grid. (A) Supplying the massive electricity to the grid has fixed costs no matter the number of customers who need the open lines at any time. So when fewer customers actually on the grid (like residential rooftop solar users) those fixed costs have to be born by the rest of the customers. Solar users go up, the grids fixed costs to everyone else goes up. (B) The grid suppliers are required by California law to buy any solar rooftop “excess output” (solar output greater than the rooftop solar location needs) , whether the grid needs it or not AND they must pay retail. If the grid actually needed that additional input they could get it cheaper wholesale on the open grid markets. So, in two different ways eveyone who uses the grid in California has had their costs go up due to solar.
Now, having created their electricity cost monster they are going to “solve” their own crisis by a government cost “redistribution” policy, again making electricity WRONGFULLY cheaper for some and increasing the costs, even more, for others. What could possibly go wrong. /sarc
Here’s hoping.
My dad got out of the Air Force in 1952 and planned to move to southern California, since one of his college classmates lived in Huntington Beach and had told Dad how nice it was there. Dad decided to take a month or two and see more of the West before settling down with the family (only two kids then), and ended up deciding to stay in Portland, which is where the other four of us were born.
Portland was a great place in the 50s and 60s, even on well into the 80s. Now I have no plans ever to go there again.
Cali voted to pay more for EVERYTHING! who are we to stop them?
You did a good job explaining how the enviralist B$ requirements are costing all of us a lot of us money for our electricity and natural gas.
$0.534/per kWh is the regular Winter rate for PG&E in my “area”. CA has “area rates”...rates based on Zip Codes (hotter interior valley areas pay less than the coastal areas for electric in Summer, etc.).
A quick calculation of my last bill when subject to the new rules shows that my bill will remain about the same...the B.S. aspect is “income based” base rates vs. the same base rate for everyone. (PG&E had NO “base rates” before this...just a “minimum connection charge” of $10. even if you used NO power) “Infrastructure” costs were/are plowed into the “per kWh” rate currently...they will be in the “base charge” starting late next year...see:
Bookmark.
I think homeowners there go “off grid” cuz the power ain’t dependable.
And, oddly, the Dems will never understand this dynamic.
Only in government could “lowering people’s bills” be defined as adding $24/month.
P.G.&E. Put off grid upgrades to save money for its shareholders and wildfires resulted.
So now the crappola company wants to shake down customers even more?
Learners in this company ought be in prison.
Thanks for posting.
"Surely California blacks, regardless of their household income, will be exempt from this monthly fee. /sarc?"
"...utility billing policy will rescue...by redistributing the massive costs of the state’s electric grid..."
When the wind speed is over 35 mph; and they shut the power off; do you still have to pay the $24?
Thanks
So they want to charge everybody an extra light bill so a few can buy an EV? Yeah, that makes perfect sense to almost nobody. Here’s a thought; If they quit producing EVs because few people want the accursed things, then their value drops. Then ,later since parts for them will be nearly unavailable, their value REALLY drops. My thinking is that since there is already a long list of reasons to NOT own one, that list will become even longer & possibly very soon. By then the charging stations might start becoming extinct too & assuredly people will realize the electrical grid was needed for other things anyway.
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