This is exactly what it is. It’s actually a tax, basically a back door to raise prices across the board and generate huge revenues, disingenuously passed under the auspices of equity and fair share politics.
Also, now the state government has detailed access to income based billing of every citizen, all set up and ready to go. But I’m sure it will never be used for anything else.
The idea here was to charge an income-based fixed charge to cover the costs of infrastructure, nebulous future “climate investments” and “general operation” (read: offload costs to generate more profits), and then cut the rates for the electricity that’s actually used. Lower rates, the theory goes, will encourage all Californians to buy new electric appliances and electric cars.
But all that’s going to happen is that the cost will go up, and the three companies that sponsored this bill will make massive profits as they shift more of the cost of infrastructure onto rate payers and play the “investment game” they’ve been at for 30 years: the game that’s killed hundreds of people and burned entire cities off the map.
It is simply another example of California introducing back door welfare taxes that aren't included in the state budget.
Taxes aren't increased, but companies are mandated to charge different prices to customers.