As Californians resent rising electricity prices, Gov. Gavin Newsom issued an executive order Wednesday aimed at providing them with some relief.
The governor’s order directs the state’s Utilities and Energy Commission to find ways to lower future electricity rates, or at least prevent them from rising rapidly.
Among the actions he’s calling for is a closer look at how power companies spend money to stop power lines from starting wildfires. These wildfire mitigation costs currently account for about 13% of customers’ monthly electricity bills, state officials said.
“We are taking action to address rising electricity costs and save consumers money on their bills,” Newsom said. “California is proving it can address affordability concerns as we continue our world-leading efforts to combat the climate crisis.”
The governor issued the executive order just days before Tuesday’s election, in which the food economy is a top concern.
California’s electricity rates are currently the second highest in the nation, after Hawaii. Residential customer bills have increased by 110% over the past decade.
In just the past three years, customer bills at the three largest commercial power companies — Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric — have increased by 20% to 50%. These recent rate increases were reviewed and approved by Newsom’s appointees to the State Public Utilities Commission.
The executive order is just one of Newsom’s latest moves aimed at reducing soaring energy costs. In August, he and Democratic lawmakers announced a series of energy bills just days before Congress adjourned. That same month, the governor ordered lawmakers to return to Sacramento for a special legislative session to consider a bill that would require refineries to stockpile more gasoline to prevent pump price spikes.
Newsom is committed to the state’s ambitious climate goals, including achieving 100% clean electricity by 2045, the governor’s staff said. But Newsom said he’s concerned because electricity rates are rising to cover the cost of solar farms and other renewable power that the state is rapidly building. , they say.
President Newsom’s executive order asks the administration to look for “underperforming or underutilized programs” for which electricity customers are paying and that could be terminated. There is. It says any unused funds from these programs should be returned to customers.
Additionally, the order requires the state Air Resources Board to determine how California climate credits can be increased. Most Californians receive credits for their electricity and gas bills twice a year. The credits are funded by the state’s cap-and-trade program, which seeks to reduce harmful emissions.
The order also directs the State Public Utilities Commission to pursue any federal funding opportunities that could reduce electricity costs.
Initial plans for an executive order by Mr. Newsom’s office reviewed by the Times called on the Public Utilities Commission to consider other ways to fund the construction of power lines and other infrastructure. Currently, infrastructure construction is an important means for power companies to increase profits. That’s because power companies charge ratepayers the cost over many years, typically at an annual rate of 10.5%.
Consumer groups argue that lowering this rate could result in significant savings for customers.
The governor’s executive order released Wednesday did not include that provision. His staff said the directive to find other ways to fund infrastructure was not included in the executive order because it would require legislative changes.
In August, Newsom backed away from an earlier plan to lower infrastructure rates after criticism from major power companies and electric unions, the Sacramento Bee reported.
