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The costs for gas and utilities are going up fast in California - and struggling working families are definitely feeling the pinch in their household budgets.
On March 2, the average price of a gallon of gas in California hit an all-time record of $5.07 - and it continues to go up! That’s not all. As they struggle to keep the lights on at home, Californians this year are seeing their kWh energy rates go up more than 11 percent and natural gas rates go up 25 percent – in just one year!
Carl DeMaio, Chairman of Reform California, says that while the Russia-Ukraine crisis has certainly had an impact on making all forms of energy more expensive in recent weeks, Californians have long been paying more than they should be because of “policy failures” by state leaders.
“California Democrats have imposed so many mandates, taxes and regulations on gas and energy that we have by far the highest rates in the nation - and it’s all a crushing burden being imposed on working families by politicians who don’t seem to care about the cost impacts,” DeMaio says.
The cost comparisons between California and the US national average for gas and electricity back up DeMaio’s assessment.
For example, on March 2, Californians were forced to pay $1.38-1.52 more for a gallon of gas than the national average. For electricity rates, California’s kWh rate is now 250% more than the national average.
Why are Californians paying so much more for gas and utilities? DeMaio breaks the hidden costs down.
For a gallon of gas, California politicians imposed the highest gas tax in the nation. (And no, the vast majority of that money does not fund road repairs.) On top of the highest gas tax, California politicians have also imposed a Cap-and-Trade tax on every gallon of gas and impose costly regulations on the blend/mix of gas used.
For energy utilities, California politicians appoint government commissioners on the CPUC who set the actual rates - not the utility companies. In fact, state regulations ban utilities from buying the cheapest energy in favor of more expensive energy sources favored by the state’s woke politicians.
Consumers are also forced to pay higher utility rates to fund government-mandated “public purpose” programs - such as welfare assistance, climate change programs, and wildfire preparedness.
Last year California politicians claimed they were running a budget surplus of over $50 billion - but politicians imposed $2.7 billion in extra charges on utility bills to fund off-budget government programs through the “public purpose” charges.
DeMaio says charges for the “public purpose” programs are simply a hidden tax on ratepayers.
To add insult to injury, California politicians also have imposed a “High Usage Charge,” which DeMaio calls a “Hidden Usage Charge,” on all energy bills.
“Most consumers miss this item on their bill - but it’s basically like a speeding ticket,” said DeMaio. “If you use over a certain amount of energy, they penalize you — even if you’re already paying for and willing to pay the agreed upon rate for the energy you use.”
DeMaio also points out that state politicians are restricting production of energy - even shutting down nuclear power plants and clean natural gas plants in California. By choking production, politicians have forced California to import 30% of its energy each year from neighboring states.
Sound familiar? That’s why DeMaio warns what California state politicians have done to “screw up” their energy market is exactly what the Biden Administration and Democrats in Congress are doing to the nation’s energy market.
“California has been living under the costly and unsustainable Green New Deal policies for the last decade - and look what it has done to us!” DeMaio warns. “These extreme policies have choked energy supply and imposed skyrocketing costs on working families in California - and now we’re seeing the same happen nationally,” he continued.
DeMaio warns that liberal media outlets and state politicians will desperately try to use the Russia-Ukraine conflict to divert attention from the simple fact that Californians have long been forced to pay more for their gas and electricity than they need to - or than their counterparts in other US states have to pay.
“The Russia-Ukraine conflict is such a gift for California Democrat politicians and the liberal media to be able to point to Putin and say ‘well that’s why your gas is $5.50 a gallon,’” said DeMaio. “They don’t want you to know that it’s the policies of liberal politicians that are hurting your wallets,” he continued.
DeMaio and Reform California are fighting back against the energy price increases and turning it into a campaign issue for the 2022 election. The organization plans to recruit and run reform-minded candidates that will hold politicians accountable and demand to know where they stand on raising the gas tax and imposing costly charges on utility bills.
DeMaio is asking for help in backing a campaign to force state politicians to suspend the gas tax until the Russia-Ukraine crisis is over - and is urging fed-up Californians to join the fight.
Join the Campaign: Stop the Gas Tax Hikes
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