Cali Dems find a way to give money to consumers that they've taken, and get credit for it
Just when you think you've seen every possible political scam to win votes from what are charmingly called "low-information voters," Democrats come up with a new one. This one's called "California Climate Credit."
If you're a Democrat you'll probably think I'm just making this up, so click on the link first. I'll wait.
Okay, here's the gist: the state legislature--totally controlled by Democrats for decades--passed a law directing this. The lofty stated purpose is "to help communities meet state and local energy and climate action goals." And no, you're not supposed to ask how that will happen. But the result is that twice a year residential consumers in areas served by "investor-owned" utilities will get a credit on their electric bill. The first credit is estimated at $40.
Sweet, eh? Those wunnerful Dems is makin' da eeebil electric corporations give da peeps money! Yay Democrats!!
But wait a second: According to the website that explains this (you did click the link, right?), "Funding comes from investor-owned utility customers under the auspices of the California Public Utilities Commission."
So doesn't that mean the money in the credit will be a refund of money the utilities collect in revenue...from consumers' electric bills?
Why yes, yes it does.
But doesn't the state Utilities Commission set the rates the power companies can charge for electricity so the companies will make an essentially fixed rate of return on their billions of dollars in investment in generating facilities and transmission lines?
Why yes, yes it does.
In other words California's Democrat-run legislature has simply ordered companies to take money from what you pay in your electric bill and give it back to you in a visible way. But since rates are set to make a fixed return, this money is offset by...higher electricity rates, in exactly the same amount.
In other words, the net benefit to consumers is exactly...zero.
But of course it's utterly impossible to convince the low-info person of this.
Kinda reminds you of modest-income LIVs who work for a company, get income taxes withheld from every paycheck, and then if they get a refund on their taxes the next year, truly believe they "paid no taxes last year!"
I predict we'll see Democrat legislators in California touting this faaabulous, lookin'-out-for-you bill--AB-32--in a matter of weeks.
If you're a Democrat you'll probably think I'm just making this up, so click on the link first. I'll wait.
Okay, here's the gist: the state legislature--totally controlled by Democrats for decades--passed a law directing this. The lofty stated purpose is "to help communities meet state and local energy and climate action goals." And no, you're not supposed to ask how that will happen. But the result is that twice a year residential consumers in areas served by "investor-owned" utilities will get a credit on their electric bill. The first credit is estimated at $40.
Sweet, eh? Those wunnerful Dems is makin' da eeebil electric corporations give da peeps money! Yay Democrats!!
But wait a second: According to the website that explains this (you did click the link, right?), "Funding comes from investor-owned utility customers under the auspices of the California Public Utilities Commission."
So doesn't that mean the money in the credit will be a refund of money the utilities collect in revenue...from consumers' electric bills?
Why yes, yes it does.
But doesn't the state Utilities Commission set the rates the power companies can charge for electricity so the companies will make an essentially fixed rate of return on their billions of dollars in investment in generating facilities and transmission lines?
Why yes, yes it does.
In other words California's Democrat-run legislature has simply ordered companies to take money from what you pay in your electric bill and give it back to you in a visible way. But since rates are set to make a fixed return, this money is offset by...higher electricity rates, in exactly the same amount.
In other words, the net benefit to consumers is exactly...zero.
But of course it's utterly impossible to convince the low-info person of this.
Kinda reminds you of modest-income LIVs who work for a company, get income taxes withheld from every paycheck, and then if they get a refund on their taxes the next year, truly believe they "paid no taxes last year!"
I predict we'll see Democrat legislators in California touting this faaabulous, lookin'-out-for-you bill--AB-32--in a matter of weeks.
posted by SF at
2:42 PM
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