Stop the Electric Bill Increases!
Protect Families, Save Jobs
What’s Really Behind the LADWP Rate Hikes?
California’s Global Warming Law (AB 32) and related laws were the main reason behind the recent proposal to increase electricity rates by nearly 30% because they forced the Los Angeles Department of Water and Power (LADWP) to buy more expensive renewable energy supplies. Thanks to the leadership of many local officials and community groups, the nearly 30% increase was rejected.
More Electric Rate Increases Coming.
The state’s AB 32 cap-and-auction program would add an additional 30% rate increase on LADWP customers over and above the 30% increase that already has been proposed. According to Mayor Villaraigosa, the AB 32 auction tax would cost LA ratepayers $750 million a year.
Gasoline, Natural Gas Prices, Food and Housing Costs Will Increase Too
The state’s global warming law will also increase costs for gasoline and diesel by $3.7 billion a year, increase new home costs by $50,000 and drive up natural gas bills. According to economic experts from the California Air Resources Board (CARB), “AB 32 will cause California households to face higher prices both directly for electricity, natural gas, and gasoline, and indirectly as businesses pass costs for GHG reduction on to consumers.”
Higher Energy Costs = Lost Jobs
Increased costs for energy resulting from an AB 32 auction tax would also lead to lost jobs. A recent study found that more than 1,600,000 jobs would be lost because of this global warming tax.
Low Income Families and Latino Workers Hardest Hit by Higher Energy Costs
Higher energy costs hit poor families the hardest because they pay a larger percentage of their incomes for electricity and gasoline. In addition, more than three million blue collar jobs would be most at risk from AB 32 according to a study by the UC Berkeley Center for Labor Research and Education. The Labor Center’s report found that these at risk jobs were generally union jobs that paid higher than average wages and were filled more by men, Latinos, and workers with lower than average years of education.