The latest report from the Legislative Analyst’s Office (LAO) confirms what many residents have long suspected: California’s electricity rates are among the highest in the nation. According to the LAO, California has “the second highest residential electricity rates after Hawaii, with average rates that are close to double the national average.”
I am serving as vice chair of the Utilities and Energy Committee to represent constituents who are tired of paying the highest rates in the continental US. While Sacramento politicians pride themselves on leading the way in climate policy, their actions are financially crushing those they represent.
The cost of electricity in California isn’t just high, it’s rising at an unsustainable pace. The LAO report highlights that from 2019 to 2023, residential electricity rates rose by nearly 50 percent. This is significantly higher than the 18-percent growth in prices across all other categories. These ballooning energy rates show no signs of slowing down. According to the California Public Utilities Commission (CPUC), residential utility rates from California’s largest energy providers will continue to rise through 2027 at a rate between 5.6 percent and 10.8 percent a year.
Energy rates are not driven by inflation, as some would like us to believe, but instead by misguided policies from out-of-touch politicians in Sacramento. The rush to eliminate greenhouse gasses within California is one of the biggest causes driving up prices. While components of such policies may be well-intended, they should not be implemented at an additional expense to hard-working families already struggling to make ends meet.
Economists from UC Berkeley have shown that energy prices are so high, families are now having to make difficult sacrifices, in many cases unsafe, just to pay their monthly bills. The LAO reported that energy prices are so high Californians may not be able to turn on their air conditioning during extreme heat days, leading to “the risk of heat stroke or other negative health effects.” Our families should not have to choose between turning on the air or heater and buying groceries. Growing up in a single-parent household, I experienced first-hand this reality many families are facing today.
These continued dangerous increases come in spite of legislation that I and my colleagues have run to lower rates for Californians. Last year, my colleague, Assemblyman James Gallagher, and I ran a bill to lower energy rates for Californians by at least 30 percent. This bill was killed in the Utilities and Energy Committee without a vote. Assemblyman Gallagher has brought back the bill. As a co-author of the bill, I am hopeful it will be given the attention it deserves this year.
The legislature’s climate activists, along with the environmental priorities of Governor Gavin Newsom’s administration, combine to create a very powerful bulwark against lowering energy rates, but I am committed to fighting to make electricity affordable for families in our district.
In addition to this bill, I have introduced an Electricity Affordability Package: AB1273 and AB 1295. This legislative package is laser-focused on bringing accountability and transparency to electricity billing. The current system not only inflates energy rates beyond all reason but also hides the root cause of the increases from consumers: expensive government regulations.
Too often, the financial burden of new regulations go unnoticed until passed and implemented. The LAO warns that future policy decisions, such as achieving the state’s goal of 100-percent clean electricity by 2045, will continue to drive rates even higher. Before any state board or committee votes on policies affecting energy costs, the total price tag should be disclosed. Californians have the right to know how much more they will be paying before decisions are finalized – not after they’re blindsided by another rate increase.
AB 1273 will ensure the public is informed of potential rate increases and has the opportunity to provide public comment to protest. Currently, the CPUC allows for rate increases to be quietly approved via the “consent” agenda. By doing this, the public does not have the opportunity to discuss or share concerns regarding potential rate increases.
As KMPH reports, “Two of the four rate hikes passed in 2024 were approved with no explanation from commissioners.” This prevents Californians from voicing their concerns and allows some rate increases to go unnoticed.
My bill will require the CPUC to agendize potential rate increases and hold public comment to allow residents (and businesses!) to voice potential concerns.
AB 1295 will show ratepayers the hidden costs they pay in their energy bills. As both the LAO report and the recent CPUC report highlight, California ratepayers have been paying for public programs, in many cases without their knowledge. Consumers are led to believe they are paying for energy they use while they are instead being burdened to foot the bill for politicians’ political priorities. If Governor Newsom does not want to cut the exorbitant rates for overburdened Californians, he should at least let Californians know where their money is being funneled.
Californians, including myself, are not opposed to investing in a cleaner, more reliable energy future. But residents cannot be left in the dark about how much it is actually costing them. Governor Newsom and state regulators must make lowering the cost of electricity a priority for the state, and that starts with taking a hard look at the misguided state regulations increasing costs to residents.
For an electronic version of this article, please visit my website at https://ad05.asmrc.org.
Assemblyman Joe Patterson represents the 5th Assembly District in the California Legislature.