SACRAMENTO, Calif. – Working families, retirees, disabled individuals and millions of others living in apartments or small homes in the state will face steeper monthly electricity bills if a proposed utility tax takes effect, consumer advocates warned on a webinar.
During the April 16 virtual press event, leaders from a coalition of more than 250 statewide and national organizations urged state lawmakers to back legislation that would block the tax.
The Stop the Big Utility Tax coalition says passage of the legislation, A.B. 1999, would protect hard-working Californians who face some of the highest electricity bills in the U.S. Introduced by Assemblymember Jacqui Irwin (D-Thousand Oaks), A.B. 1999 would overturn language tucked into a 2020 budget bill that enabled the California Public Utilities Commission, or CPUC, to impose an uncapped monthly fixed charge hike on bills.
In May, the CPUC is poised to approve the charge at $24, which is more than double the national average for such fees. It would result in overall utility bills going up for millions of families who live in smaller homes and apartments or who take steps to reduce their energy use. And because the charge is uncapped, the CPUC can keep raising it in the future.
Representatives from coalition member groups who spoke during the webinar included Ken Cook, president, Environmental Working Group, who moderated the event; Josh Plaisted, principle, Flagstaff Research; Richard Skaff, executive director, Designing Accessible Communities; Jenn Engstrom, state director, CALPIRG; Laura Deehan, state director, Environmental California; Sharrah Thompson, Central Valley regional coordinator, Tenants Together; and Natalie Herendeen, Center for Community Advocacy.
Below are portions of the remarks each participant shared during the briefing:
Ken Cook
Even a utility tax of $24 a month, which in and of itself may not seem like much to a lot of people . . .will increase utility bills for millions of working people and retirees in California who live in apartments or small homes that use less electricity.
We’re talking here about the organizations that day in, day out, represent these communities, and it’s more than 250 of them that are opposing the utility tax.
Shar Thompson
I am the Central Valley Regional Coordinator of Tenants together, a voice from the Fresno Tenants Union, and a single mom of one that lives in the poorest ZIP code of Fresno, California.
The $24 per month utility tax that is being proposed, folks just don’t have it in their pockets to pay. I know personally that even with a great-paying salary as a single mother that lives in a two-bedroom apartment, it’s just not feasible when you’re making over the area median income and don’t qualify for these subsidies.
Richard Skaff
The electric utility rate hikes have forced those that are already struggling to hand over more of their own money, and just as you think it can't get worse, it does. The for-profit electric utilities, and the CPUC, and some other organizations are now proposing to charge most ratepayers the highest utility tax in the country.
A utility tax of $24 a month would unfairly raise utility bills even for anyone with a small energy footprint, disproportionately harming most people who live in an apartment or small home. This would be devastating to renters and households that are already struggling.
People with disabilities and vulnerable seniors will be especially impacted. Over 4 million Californians live with a disability, often struggling to make ends meet. Lower-income households with family members who have a disability are already wrestling with major affordability challenges and are often living just above the subsidy cutoff line.
Jenn Engstrom
This move takes away control from consumers on their energy bill.
Bottom line, this utility tax would punish households that use less energy, encourage high consumption, and increase bills for many Californians. That’s why we’re glad that Assemblymember Irwin has introduced A.B. 1999, which would cap fixed charges around the national average and prevent more proposals like this in the future.
Laura Deehan
It’s going to have a perverse impact of incentivizing wasting energy, encouraging people to buy the biggest car, the biggest house, leaving lights on, instead of what we’ve always wanted to do, always tried to do, as a state, as a nation, which is encouraging energy efficiency.
Instead of encouraging electrification, this will likely lead to a slowdown in adoption of electric heat pumps or electric cars.
Josh Plaisted
It’s a . . . ruse that the fixed charge enables electrification. Utilities want the fixed charge. They know we also want electrification. So, they’re linking these two issues when they’re really not linked at all.
Natalie Herendeen
Farmworkers are struggling day to day. They can’t live. The rents, the utilities, everything’s out of control, and we’re seeing homelessness increasing. Everybody is struggling. The utility tax is just one more slap in the face.
If A.B. 1999 does not pass, then this is just one more thing where we’re allowing power and profits to go unchecked.
The entire event can be viewed here.
The Stop the Utility Tax coalition of more than 250 organizations across California includes a diverse range of groups such as tenants' rights organizations, environmental justice leaders, farmworkers, consumer advocates, affordable housing proponents, climate advocates, labor unions, faith leaders and local elected officials.
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The Environmental Working Group is a nonprofit, non-partisan organization that empowers people to live healthier lives in a healthier environment. Through research, advocacy and unique education tools, EWG drives consumer choice and civic action.
