Rising costs of utilities in California present a threat to economic stability
Utility bills in California are going up faster than people’s incomes, leaving residents with less money for basic needs. Instead of going toward things like food and housing, more and more of our money is going toward utility bills.
Here are some startling numbers from a recent report by the California Public Advocates Office: in the past 10 years, the cost of electricity from Pacific Gas and Electric Company has gone up by as much as 127%, Southern California Edison by 89%, and San Diego Gas & Electric by 105%. Meanwhile, the overall cost of living, as measured by the Consumer Price Index, has only increased by 28%.
Despite household incomes having gone up by about 58% and the minimum wage by about 66% in the same time frame, more than 3 million minimum wage workers in California — about 19% of the workforce — are disproportionately feeling the impact of these rising utility costs. This means that utility bills now make up a bigger chunk of our budgets than they did 10 years ago.
As California pushes toward cleaner, more sustainable energy sources, the costs are hitting those who can least afford it the hardest. This shift is not only affecting people’s wallets but also leading to a rise in poverty rates, especially among children. In fact, a recent survey found that a quarter of Californians are struggling to pay their utility bills, forcing them to make tough choices between staying warm or putting food on the table.
The recent moratorium on utility shut-offs during the pandemic has now ended, leading to more than 162,000 service disconnects in just 10 months, as reported by PG&E. While there are debt forgiveness programs in place, many customers are being dropped due to payment issues or eligibility requirements, only adding to the state’s growing homelessness crisis.
Not even solar energy users are immune to the rising costs of energy. The California Public Utilities Commission recently made a policy change that reduces the value of residential solar energy systems. Not only has this been a jolt for rooftop solar owners, it has resulted in job losses and business failures in the solar industry. Leave it to California to make harnessing the sun’s free energy too expensive to be practical.
It’s clear that we need to rethink our approach to energy policy in California. Instead of rushing toward unrealistic goals that hurt the most vulnerable, we should focus on creating sustainable, affordable solutions that benefit everyone. By addressing these challenges head-on, we can work towards a future where all Californians can thrive economically.