At the October 24th meeting, the Vista City Council took a firm stance against AB205 Section 739.9 Public Utilities Code. A piece of legislation passed in June of 2022, that will significantly impact the wallets of Vista residents. This legislation granted public utility companies the authority to impose an uncapped fixed rate tax on all ratepayer electric bills, with the rate determined by an individual’s income.
This means that anyone who touches the grid as a ratepayer, even if you have solar panels with a battery, will be charged a fixed rate tax based on how much money you earn.
The Resolution, which was passed 5-0 by the Council, was introduced by Councilmember Dan O’Donnell, “Unfortunately, most people don’t know about it, and if you’re unfamiliar, it’s because they have done an extremely good job at hiding it from the public… it is going to impact millions of working class families all across California.”
Not only would the current $10 cap on the utility tax be removed, but depending upon your household income, you can expect to pay between $30 to $70 more per month on your electric bill. An increase at those rates would mean a tax of up to seven times the national average, in a state that is already paying the highest electricity rates in the nation.
Vista City Council members expressed their commitment to protecting the financial well-being of their constituents. Councilmember Katie Melendez said, “This section, which allows investor owned utilities to extract fixed charges from customers, is predatory in the worst way, especially against working people.” Councilmember Joe Green agreed, “…as opposed to having a standard way that you charge somebody… you see how much money they make, and you figure our how much you are going to charge them. That is the definition of predatory…”
Councilmember O’Donnell also pointed out “This is not just a tax. This is a bill increase for nearly every resident in the state of California… to be levied onto the working class families like our teachers, our nurses, our firefighters, our law enforcement, service industry employees, and so many others.” He also urged every elected official and resident to demand the immediate repeal of section 739.9 of AB 205.
The final decision on this matter take place in Sacramento on Thursday, November 2nd, starting at 11 am. To stop this tax, you can take the following actions:
1. Call the Governors office Monday-Friday between 9am-5pm and demand this not go through. You can reach the Governor’s office at 916-445-2841
2. Go to the California Public Utilities Companies website and click “Add Public Comment” to demand they not impose a Fixed Utility Tax on working class families.
3. Contact your State Assembly Member and State Senator demanding the immediate repeal of section 739.9 of AB205 – https://findyourrep.legislature.ca.gov/
