SACRAMENTO, Calif. – The California Public Utilities Commission, or CPUC, on Thursday voted to impose a new utility tax of $24 a month on millions of hardworking California families. The tax is more than double the national average for such fees.
The CPUC’s decision will result in utility bills going up for many people living in smaller homes and apartments, or who take steps to reduce their energy use. And the CPUC can keep raising the tax in the future because it is uncapped.
The following is a statement from the Stop the Big Utility Tax Coalition – representing more than 240 organizations opposed to the new tax, including the Environmental Working Group. It is attributable to Bill Allayaud, EWG’s director of California government affairs:
The new utility tax passed this week will affect the electricity rates for millions of Californians in negative ways that the CPUC is not discussing.
The losers in the vote are households that use less energy, who typically live in smaller homes and apartments and have lower incomes, as the new tax represents a larger percent of their monthly bill. That includes many seniors, renters, and working families, totaling more than 4 million households across California.
Because the new utility tax disincentives energy conservation and could discourage users of gas appliances to switch to electric ones, California’s fight against the climate crisis is also a loser with the CPUC’s vote. It is disappointing to see the CPUC once again side with the interests of big utilities over struggling households and our climate goals, awarding them a monthly fixed charge that is twice the national average. They should be telling consumers that they are diligently reining in the exorbitant salaries and bonuses enjoyed by those running the utilities.
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