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A man wearing a protective mask walks along a path in Ayala Park near towering power lines in Chino on Friday, January 5, 2024. (Photo by Watchara Phomicinda, The Press-Enterprise/SCNG)
Perhaps you have seen a PR campaign promoting the Nestlé company’s impressive sustainability track record. The company calls its water EcoShape, claims it uses 15% less plastic, and even urges consumers to recycle. The problem is that 98% of Nestlé products are sold using single-use plastic, and the company produces 1.7 million tonnes of plastic annually. The company is not as environmentally friendly as advertised. This deceptive climate marketing practice is called greenwashing, and we’re now seeing California power companies deploying similar tactics.
California has three monopoly electric utilities: PG&E, SoCal Edison, and SDG&E. We are all familiar with how our electricity bills go up every month and it becomes difficult to pay them. Just as Nestlé prides itself on its commitment to the environment while producing plastic, these power companies also use similar gaslighting techniques. They hire his expensive PR and marketing firms to blind us with a popular but insidious strategy we call “stock laundering.”
Simply put, PG&E and other monopolistic utility companies tout policies that they claim are financially fair to low-income customers. But when you look at the details, these are just schemes designed to preserve the interests of Wall Street shareholders against the backdrop of working and middle-class families.
The best example is an “income-based fixed rate,” which adds a fee to your utility bill based on your income rather than your energy usage. When we first heard about this policy, we, like many advocates, thought, “Wow, that’s a progressive tax on utilities.” Ultimately, wealthy energy consumers will end up paying their fair share. ” Hey, we were wrong!
When we took a closer look at the so-called “income-based flat fee,” we were appalled. The policy was rotten from the beginning. First, the language was forced into a climate bill at the last minute by monopoly lobbyists, and the Public Utility Commission (which regulates the business) refused to grant any public hearings on the policy. Therefore, public transparency is to be condemned.
Then read a letter sent by 24 progressive energy economists to the CPUC that shows that not only is this policy not progressive, it actually harms millions of families living in tiny homes, condos, and apartments. He claimed to be giving. Families who rely on conserving energy to reduce their monthly utility bills. In other words, California’s working poor.
In reality, the so-called “fixed amount based on income” is nothing more than a utility bill for the working poor and middle class.
To fight back against monopolistic utility “stock laundering,” we have supported a coalition of more than 220 grassroots community organizations, including the California Environmental Justice Coalition, the California Retired Americans Alliance, and the Western Law Center. Poverty, the Center for Biological Diversity, Tenants Together, the Martin Luther King Jr. Freedom Foundation, Catholic Charities, California Interfaith Light and Power – all advocate for real equity in our society. We do not advocate the interests of any Wall Street-traded company. Proprietary utility.
Fortunately, we are not alone. California lawmakers are also exposing a monopolistic utility stock-laundering scheme. Last month, Democratic Rep. Jackie Irwin introduced AB 1999. This bill would eliminate public fees. She was joined by a diverse group of 35 members of Congress and state senators. Complete repeal would be the appropriate outcome for such a regressive and deceptive policy.
We look forward to the abolition of the public works tax. We look forward to discussing the most progressive ways to reduce California’s carbon footprint and, at the same time, lower energy bills for California’s working families.
Here’s a hint. The answer is not one that favors the interests of monopolies that make tens of billions of dollars in profits each year and pay their CEOs $50 million in bonuses. But the answer to solving out-of-control energy costs is rooted in cleaner, cheaper green energy. You can’t wash away that truth.
Ambrose Carroll, Esperanza Vielma and Francisco Moreno are leaders of the Coalition for an Environmentally Just Economy.
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