Californians are counting on state legislators to Stop the Big Utility Tax.
The Big Utility Tax is a monthly fee imposed by utilities on all residential consumers. The fee cannot be reduced or avoided — no matter how little energy a family uses.
A $24 a month Utility Tax would raise the energy bills on millions of working and middle class families in California.
The CPUC voted to charge a Utility Tax of $24 per month for working and middle class families. Utilities pushed for an even higher Utility Tax as high as $70 per month. The totals would add up to $360 to $840 a year. Even a $24 Utility Tax would be twice the national average.
Overall, the Utility Tax would increase electricity bills for any Californian who does not use a lot of electricity because they live in an apartment or small home, conserve energy, or have solar.
A Big Utility Tax will keep growing over time, and does nothing to control the high cost of electricity.
The Utility Tax is uncapped, which means it will keep rising, along with rates. A big Utility Tax simply adjusts who pays what, but does nothing to address the root causes of high electricity prices.
Instead of penalizing working families and seniors with a Big Utility Tax, lawmakers should get serious about holding utilities accountable for their unsustainable spending, and enact policies to control the cost of electricity.
That is why a coalition of 260 organizations is united against the Big Utility Tax.
“California has long taught consumers they can ‘flex their power’ to save money on electricity bills and help the grid. Increasing monthly fixed charges would undermine consumer control over energy bills. With electric rates at all time highs, and more increases coming, energy efficiency is the first line of defense.”
— Joe Desmond, executive director of the California Energy Efficiency and Demand Management Council
“The proposed monthly fixed charges will increase the energy bills on millions of working– and middle–class families, including many retirees on fixed incomes. A retiree who takes steps to conserve energy as a way to lower their expenses stands to see their overall electricity bill go up every month. And there’s nothing they can do about it.”
— Hene Kelly, retired teacher and vice president of the California Alliance for Retired Americans
“PG&E and other utilities are touting their proposal is fiscally equitable for their low–income customers, but don’t be fooled. The proposed utility tax is not a progressive tax when it raises bills on millions of working– and middle–class families.”
— Esperanza Vielma, executive director of the Environmental Justice Coalition for Water
“The new set fee system proposed by utilities would increase bills on millions of Californians, incentivize energy waste and punish those of us committed to energy conservation and efficiency. This not only diminishes consumer control over energy bills, but by incentivizing high energy consumption, it could increase costs on the entire system and lead to higher electricity bills for everyone.”
— Jenn Engstrom, state director for CALPIRG
“It's imperative that the legislature and Governor Newsom promptly correct this misstep and alleviate the burden on millions of hardworking families already grappling with exorbitant electricity bills that will only soar higher by this unjustifiable utility tax”
— Ken Cook, president of the Environmental Working Group
Coalition Voices
People from working and middle class communities from across California are calling on legislators to pass AB 1999 (Irwin) to protect consumers from the Utility Tax.
United to Stop the Big Utility Tax
Consumer advocates, affordable housing proponents, tenants rights groups, environmental justice leaders, conservationists, clean energy advocates, labor, community and faith leaders, educators, and local elected officials are joining together across the state to stop the Big Utility Tax.
