Major California environmental justice organization joins the coalition to repeal AB 205, the Utility Tax

“We stand in solidarity with our members who have looked at the fixed charge proposal and its effect on frontline communities. What we all see is a policy that will raise the monthly electricity bills of the working families we are committed to helping,” said Thomas Helme, CEJC coordinator.” said Thomas Helme, CEJC coordinator.

AB 205’s fixed charge provisions mandate that the California Public Utility Commission devise an electrical rate policy that forces all California consumers to pay a fixed charge for their monthly electrical bills. In fact, every fixed rate proposal filed before the CPUC would force California consumers to pay the highest fixed rate in the nation.

California’s monopoly utilities, and a small minority of other parties who have chosen to align themselves with the utilities for political reasons, initially claimed that fixed charges would help facilitate equity in rate structuring. However, as energy experts looked closer at the policy, the equity argument began to collapse.

An in-depth analysis submitted by the nonprofit Clean Coalition shows that even a $30/month fixed charge would increase electricity bills on millions of households living in apartments, condos, and modest homes. Meanwhile, households in large houses that use a lot of electricity would see bill reductions.

“Consumers living in apartments and condominiums will see higher bills due to no fault of their own, while those living in mansions will reap large bill savings. Energy gluttons will be rewarded.” said energy economist Richard Mc Cann, who joined an analysis with a dozen renowned energy economists.

CEJC joins more than two hundred and twenty environmental, climate, and economic justice organizations, including The Western Center for Law and Poverty, Tenants Together, The Martin Luther King Jr. Freedom Center, and California Climate Voters, to request a legislative repeal of AB 205.

The Repeal AB 205 Coalition is a project of the Coalition for Economic Equity and Economics and the Indivisible California Green Team.