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Saturday, April 5, 2025

Seyarto seeks repeal of income-based utility charges amid partisan opposition

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State Senator Kelly Seyarto, District 32 | Official U.S. Senate headshot

State Senator Kelly Seyarto, District 32 | Official U.S. Senate headshot

Senate Republican Caucus Chair Kelly Seyarto has introduced an amendment to repeal a proposed fixed charge on electricity bills that would be based on income levels. This proposal, referred to as the 'Hard Work Utility Tax,' was previously enabled by legislation from the supermajority party in the last session. Efforts by Senator Seyarto and California Senate Republicans to overturn this legislation were unsuccessful, as the amendment was defeated along party lines.

"This billing model places an unfair burden on hardworking families and individuals in California, who already face some of the highest utility bills in the nation," stated Senator Seyarto. He emphasized that Californians pay significantly more for electricity compared to the national average, and argued that this tax would exacerbate their financial burden. "The cost of living in California is already high, and this poorly thought out proposal, passed without a policy hearing or a discussion, will only make it more difficult for working families to afford basics like electricity."

The original bill had support from California Legislative Democrats and included provisions for income-based utility charges. Senate Minority Leader Brian W. Jones criticized these charges, stating: "The proposed fixed-charge on utility bills is nothing but Democrat lawmakers’ shameful attempt to exploit and rip off residential customers. The ‘Hard Work Utility Tax’ is an unjust and regressive plan that fails to recognize the differences in energy usage among households and unfairly burdens lower-income families." He added, "The last thing Californians need is another charge that will make it harder for them to make ends meet."

Senator Seyarto's amendment targeted AB 1614 with the intention of repealing AB 205 (2022). This bill mandates the California Public Utilities Commission (CPUC) to instruct Investor Owned Utilities to propose a new fee structure based on income levels.

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