Introduction
California has introduced a new income redistribution scheme that will impact the electricity bills of millions of residents. This plan, passed by the state legislature, involves charging customers based on their income in addition to their electricity consumption.
Income-Based Charges
The scheme introduces income-graduated fixed charges with four income brackets:
- Under $28,000
- $28,000 to $69,000
- $69,000 to $180,000
- $180,000 and above
Impact on Electricity Rates
While electricity rates themselves will be cut, lower-income households will end up paying less than they currently do. However, the average cost of electricity for California consumers is still about 70% above the national average.
Effects on High-Income Consumers
High-income residents who have reduced their electricity consumption through measures like installing solar panels or hand-washing di
