JLF Research | Spotlights

Smokes, Booze ... and Electricity? A new sin tax on electricity could be on its way

Daren Bakst
Nov. 30th, 2006
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The North Carolina Public Utilities Commission is considering charging an extra fee, separate from existing rates, to electric utility customers. This extra charge will help support what is called a “public benefits fund.” The fund would support programs that have nothing to do with the supply of electricity. Consumers would be required to pay the “fee” if they want to receive electricity, and the more electricity they use, the higher their fee will become. To environmental extremists and other proponents of this extra fee, the use of electricity, which allows us to warm our homes and function in modern society, is a “sin” and needs to be reduced.

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