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CA Considers Taxing Solar Power Generation

Posted by timothy on from the corrupts-absolutely dept.

California is considering a proposal by the state Public Utilities Commission to charge an 'exit tax,' proportional to the amount of power you generate, on electricity generated by means such as solar panels for your own use. I would expect a state like California to try and encourage the adoption of alternative power sources, but this seems a really odd way of doing it. Two groups have started lobbying against this tax. If passed, it sets a precedent that many fear will lead to similar taxes outside CA.

7 of 107 comments (clear)

  1. Not just solar power... by SchnauzerGuy · · Score: 5, Informative
    This proposed tariff doesn't just apply to solar power, but any kind of "off-grid" power generation:
    "Customer Generation" as used in this order, incorporates the definition in the Joint Parties' Settlement Agreement. It refers to cogeneration, renewable technologies, or any other type of generation that (a) is dedicated wholly or in part to serve a specific customer's load; and (b) relies on non-utility or dedicated utility distribution wires rather than the utility grid
    That means wind power, fuel cells, diesel generators, etc. are also covered. And since the settlement covers anything that reduced the customer's load, presumably even geo-thermal heating/cooling systems would be taxed.
    1. Re:Not just solar power... by slide-rule · · Score: 2, Informative

      Wording in the second paragraph on the second page (i.e., defining "Departing Load" that they're wanting to tax) makes me wonder if there's an [exceedingly] minor hole: the definition says you either stay at the same location or move to somewhere supplied by the utility. (singular sense). Not being a resident, is it possible to move inside CA where you would have to change utilities to one of the other two (of three listed) utility providers? Then, could you use self-generation without impact?

      Relatedly, what if I was to (shudder!) move to CA? I've never been served by the utility(s) before, so there's no "departing load". ?

  2. Yes, scary, but read the first line. by tunah · · Score: 4, Informative
    California is considering a proposal by the state Public Utilities Commission

    Proposed by the "Utilities": the power people. "Considering" could just mean they are deciding whether to laugh milk or coke out their nose. Then again, it might not...

    --
    Free Java games for your phone: Tontie, Sokoban
  3. Massachusetts taxes perscription drugs by crow · · Score: 2, Informative

    Speaking of taxes that fly in the face of logic, Massachusetts has instituted a tax on perscriptions. Each perscription costs you an extra $1.30 or so on top of your insurance co-pay.

    They call taxes on things that government wants to discourage (like tobacco and alcohol) sin taxes. I guess that makes these virtue taxes.

  4. Re:attention Sheep by cp99 · · Score: 2, Informative

    This would be the Enron version of events.

    Another version would go like this; because of high electricty prices, California decided to privatise it's power generation system, but thanks to only partial deregulation, and market manipulation it ended up with large increases in the cost of power, and blackouts to go with it.

    --
    Warning: Some ideologies on the Net are smaller than they appear.
  5. Re:The Sunshine State! by NewWazoo · · Score: 3, Informative


    Uh, that'd be Florida, Bob.

    Brandon

  6. Read the Full Law by Anonymous Coward · · Score: 4, Informative
    Did anyone read this law before posting? The submitted story leaves a lot of important facts out. I only read one seconds (background), but it quickly became clear that this isn't targeted at home solar panels, but things like gas powered generators set up next to factories.

    Every time the word taxes appears in the story, everyone goes crazy flaming the government.