California's Assault on Poor & Working Class

https://quillette.com/2022/07/11/californias-energy-war-on-t…

While the state is known for posh spots like Beverly Hills, Marin County, and Silicon Valley, the Golden State has the highest poverty rate in America. Indeed, the poverty figures in the state can only be described as shocking. A 2021 report by the Public Policy Institute of California found that “More than a third of Californians are living in or near poverty. Nearly one in six (16.4 percent) Californians were not in poverty but lived fairly close to the poverty line … All told, more than a third (34.0 percent) of state residents were poor or near-poor in 2019.”

California policymakers continue to implement policies on energy, housing, and transportation that are driving up the cost of living and deepening the state’s poverty problem.

In May, the Los Angeles City Council banned the use of natural gas appliances and heaters in new homes and businesses.That climate leadership comes at a high cost to consumers. Why? On an energy-equivalent basis, electricity costs four times as much as natural gas.

Perhaps the most obvious casualty of California’s climate policies is the state’s tattered electric grid. Blackouts in the state have become so common, particularly in the Bay Area, that media outlets have largely quit reporting on them. Nearly every day, maps of Pacific Gas & Electric’s service territory show outages across wide swaths of central California. The state’s increased blackouts are coinciding with skyrocketing electricity prices. And those skyrocketing electricity prices are coinciding with the implementation of some of America’s most-aggressive renewable-energy mandates.

Between 2008 and 2021, the all-sector price of electricity in California increased five times faster than rates in the rest of the continental United States. Last year alone, the all-sector price of electricity in California jumped by 9.8 percent to 19.8 cents per kilowatt-hour.

California residential users are now paying about 66 percent more for electricity than homeowners in the rest of the US.

The state also faces a chronic shortage of affordable housing. Despite the shortage, home prices are being driven up by a myriad of mandates including the requirement that new homes have solar panels on their roofs. Since 2020, single-family homes and multi-family buildings up to three stories high in California must be topped with solar panels.

Jennifer Hernandez claims:“industrial and manufacturing sectors have been decimated … Its climate accomplishments are illusory, a product of deindustrialization, high energy costs, and, more recently and improbably, depopulation. Inequality has hit record levels, and housing segregation has returned to a degree not seen since the early 1960s.”

But perhaps that is the plan. Drive the poor & working class into other more affordable state.

12 Likes

… the Golden State has the highest poverty rate in America.

Well, actually, no, not even close.

California ranked 30th, with a 13.4% poverty rate, lower than Mississippi, or Arkansas, or Michigan, or a couple dozen other states.

U.S. Poverty Rate By State In 2021

https://www.forbes.com/sites/andrewdepietro/2021/11/04/us-po…

California residential users are now paying about 66 percent more for electricity than homeowners in the rest of the US.

18 cents/kwh vs national average of 10.59.

Annual Average Price
per Kilowatthour
by State
(Lowest to Highest Rate as of 2020

https://neo.ne.gov/programs/stats/inf/204.htm

Funny thing, I don’t remember California having such grid reliability issues until it “deregulated”, so that the “invisible hand” would price their electricity. Enron certainly liked California’s “deregulation”.

Steve

22 Likes

the Golden State has the highest poverty rate in America.

Well, actually, no, not even close.

Unless you actually have to live there.

California has the nation’s highest poverty rate, when factoring in cost-of-living
https://www.politifact.com/factchecks/2017/jan/20/chad-mayes…
From 2013 to 2015, California had America’s 17th-highest poverty rate, 15 percent, according to the U.S. Census Bureau’s Official Poverty Measure. That measure uses income levels to determine poverty, but does not consider differences in cost-of-living among states. It lists the official poverty threshold for a two-adult, two-child family at $24,036 in 2015.

During the same period, California had the highest poverty rate, 20.6 percent, according to the census’ Supplemental Poverty Measure. That study does account for cost-of-living, including taxes, housing and medical costs, and is considered by researchers a more accurate reflection of poverty. For a two-adult, two-child family in California, the poverty threshold was an average of $30,000, depending on the region in the state, according to a 2014 analysis by Public Policy Institute of California.

Looking at state poverty rates, the second highest is Florida’s 19 percent, followed by New York’s and Louisiana’s shared 17.9 percent rate. The national average is 15.1 percent using the supplemental measure.

DB2

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California has the nation’s highest poverty rate, when factoring in cost-of-living

Now that is born out by the data. The article in the OP was too concerned with “shocking, alarming” hype in it’s article to discuss that.

1. California

• Supplemental poverty rate: 18.1% (the highest)

https://www.usatoday.com/story/money/2019/11/12/15-states-wh…

In that same article is another interesting tidbit, the take rate for SNAP is among the lowest in the country.

SNAP recipiency: 8.5% (12th lowest)

How much is the low take rate for SNAP juicing the poverty numbers, vs, say, Florida with a 13.8% rate, 8th highest in the country? Would Florida’s 16.2%, 3rd highest in the country, poverty rate be much higher with a lower take rate of SNAP?

Steve

3 Likes

the Golden State has the highest poverty rate in America.

Well, actually, no, not even close.

Unless you actually have to live there.

The article based it assert on a 2020 US Census Bureau Supplemental Poverty Measure.
https://www.census.gov/content/dam/Census/library/publicatio…

What is a Supplement Poverty Measure?
https://www.census.gov/topics/income-poverty/supplemental-po…
“The official poverty measure, which has been in use since the 1960s, estimates poverty rates by looking at a family’s or an individual’s cash income. The new measure is a more complex statistic incorporating additional items such as tax payments and work expenses in its family resource estimates. Thresholds used in the new measure are derived from Consumer Expenditure Survey expenditure data on basic necessities (food, shelter, clothing and utilities) and are adjusted for geographic differences in the cost of housing.”

The 2021 Supplemental Poverty Measure will not issued until September 14, 2022.

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Housing is a HUGE problem in California. However, if we continue with “depopulation” that problem will be self correcting. There is still a huge housing building boom in many areas of California to help solve this problem. In addition, they have enacted the “ADU” auxiliary dwelling unit policy in an attempt to help.

As an anecdote a friend recently had the house she rented sold from under her. Nothing else was available in her price range so she now lives in a little trailer on a friends property. Even though she is college educated with a full time job she would be considered as living in poverty.
Alan

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The California Dream is now a remote work position for a high-wage California employer.

intercst
(as long as it doesn’t mean paying taxes in two states.)

1 Like

From the original post…
California residential users are now paying about 66 percent more for electricity than homeowners in the rest of the US.


It is more like 80% higher now.

https://www.eia.gov/electricity/monthly/epm_table_grapher.ph…

As of April, California residential rates were 25.13 cents per kwh. The US average is 14.14 cents.
25.13 / 14.14 = 1.777. So about 78% higher than the US average. But if we were to compare California to the other 49 states, we would cut out California from the 14.14 cents/kwh US avg. So CA is probably closer to 80% higher or more.

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From December 2011 through December 2021, US residential rates increased 16%. California residential rates increased 50%. From December 2021 through April 2022, California rates increased 2.28 cents/kwh, in only 4 months!

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Here is San Diego, if we use electricity between the hours of 4 pm and 9 pm, then the rate is 58.8 cents per kwh. Again, the national average is 14.14 cents. Does anyone here use electricity between 4 and 9 pm? Probably not.

TOU-DR1 pricing plan…
https://www.sdge.com/residential/pricing-plans/about-our-pri…

If the SDG&E customers go above a preset monthly limit, then the rate is 69 cents/kwh between 4 and 9 pm.

The renewable energy mandates in the state are driving people into energy poverty. I thought it was unsustainable last year, but the rates just keep going up and up and up. I am not a deep-pockets fat cat, so I don’t have access to all of the fat cat government subsidy money for solar panels and the like. The place I live doesn’t allow solar panels anyway.

https://www.10news.com/news/local-news/more-than-350k-late-o…

SAN DIEGO (KGTV) — More than 350,000 San Diego County households were at least 30 days late on their SDG&E bills in March, the state Public Utilities Commission reports.

The 356,000 households behind on their payments represent 26.7 percent of the utility’s residential customers, an uptick from the 24.1 percent late a year earlier.

“They have to decide between pay the bills or buy food,” said Ramon Toscano, a Vista resident who is several hundred dollars behind on his electric bills.


  • Pete
3 Likes

From the original post…
California residential users are now paying about 66 percent more for electricity than homeowners in the rest of the US.

Steve203 wrote…
18 cents/kwh vs national average of 10.59.


The link you provided shows the rates for all sectors. The original post specifically referred to residential customers. Apples vs Oranges. Residential customers generally pay the highest rates.

https://www.eia.gov/electricity/monthly/epm_table_grapher.ph…

Also, things have changed a lot since 2020. Things have not changed for the better here in California.

  • Pete
2 Likes

In modern day Marie Antoinette humor, we say:
If they want to complain about gas prices, buy a Tesla.
If they want to complain about electricity prices, put up a solar roof.

of course neither are possible for those in poverty.
Alan

1 Like

In modern day Marie Antoinette humor, we say:
If they want to complain about gas prices, buy a Tesla.
If they want to complain about electricity prices, put up a solar roof.

of course neither are possible for those in poverty.
Alan

“We”, to the best of my knowledge, consisting only of Alan.

2 Likes

Here is San Diego, if we use electricity between the hours of 4 pm and 9 pm, then the rate is 58.8 cents per kwh. Again, the national average is 14.14 cents. Does anyone here use electricity between 4 and 9 pm? Probably not.

Plenty will use electricity at that time. A/C, cooking dinner, watching TV, etc. However, they will probably tell their car to start charging after 9 (or after 12 if the rate goes down further). And they may start the dryer after 9.

Given I plagiarized it off of a CA joke board, it is certainly more than me and the mouse in my pocket:-)
Alan

The California Dream is now a remote work position for a high-wage California employer.

intercst
(as long as it doesn’t mean paying taxes in two states.)

Banker daughter’s new employer insists she show up for work at the office four days a week … unless she has a sniffle or some other indication that could be COVID?

The office is a block or so away from her previous office that she rarely attended preferring her well equipped home office just north of Orinda.

Long phone call on the weekend, the new employer is planning an official “Hire announcement” to replace what was a “leak announcement” on CNBC awhile back. Some of her former clients have already shown up at their door.

As to electricity price, they have 40 panels on their roof that feed the grid so they get a very reduced price for power from the grid… when it is working.

Tim