SACRAMENTO, Calif. —
California has the second highest electricity rates in the nation that have outpaced inflation, and one state lawmaker has said he’s filing legislation to help ratepayers understand why.
The new report released Tuesday by Califorina’s Legislative Analyst’s Office—the top financial and policy advisor for lawmakers in both political parties—shows the state’s electricity rates are likely to continue to rise because of a combination of factors. The main contributors, according to the report, include the state’s ambitious environmental policies, wildfire costs to utility companies, and the state’s increasing demand for electricity as the state’s policies attempt to cut reliance on oil and gas.
“Rates have increased pretty dramatically for Californians in recent years,” said Helen Kerstein, a principal fiscal and policy analyst with the LAO, in an interview with KCRA 3. “One of the reasons why we chose this specific topic is because we think affordability is such an important issue for the legislature.”
Most Californians get their electricity from investor-owned utility companies like PG&E, San Diego Gas & Electric and Southern California Edison. The report shows within the last four years, their customers have seen their electricity bills increase faster than the national average, rising between 48% to 67% depending on the company.
Kerstein noted the report is not necessarily meant to provide any recommendations for lawmakers but to help inform their decisions as they craft and vote on new laws for the upcoming year.
Lawmakers are in the process of crafting proposals in response to the rising utility rates.
“The environmental goals for example might be laudable, but they come with an expense,” said Assemblyman Joe Patterson, a Republican from Rocklin who is the Vice Chairman of the Assembly Utilites and Energy Committee.
Patterson said next week he will soon file legislation that requires the California Public Utilities Commission to have in-person public comment before any vote to increase rates.
He said he’ll also file legislation requiring utility bills to show what percentage of their bills is related to the state government’s decisions.
“Not only are Californians frustrated by the cost, but my constituents are constantly blaming the utilities, and I think look, utilities play a role in that,” said Patterson. “But at the end of the day, Californians ought to know the majority of their bill is because of the decisions made in this building,” he said, referring to the state capitol.
The Democratic leader of the Assembly’s Utilities and Energy Committee, Assemblymember Cottie Petrie-Norris, did not respond to a request for comment. Democratic State Senator Josh Becker, who leads a similar committee in the State Senate, was unavailable for an interview on Tuesday.
To attempt to address the rising utility costs, Gov. Gavin Newsom signed an executive order on Oct. 30 in which he directed the California Energy Commission and California Public Utilities Commission to analyze and make recommendations around pricier state programs that could be changed or potentially cut. Those recommendations were due to his office by January 1, 2025.
Since January 2, KCRA 3 has repeatedly asked for copies of the recommendations and analyses. The governor’s office has confirmed it received the reports but won’t release them publicly. In response, KCRA 3 filed a California Public Records Act request to get the information. That formal process to get information from the office could now take days or up to months.
The governor’s office did provide a statement in response to the LAO’s report on Tuesday.
“Governor Newsom remains laser-focused on delivering both near and longer-term relief for Californians facing rising electricity bills. This issue is not unique to California – rates continue to increase across the country,” a spokesman said in a written statement. “As the Governor’s October executive order pointed out, we’re particularly concerned by rising costs related to utility wildfire mitigation oversight and outdated programs adding to customer’s bills. The Governor looks forward to collaborating with the Legislature to take further action to curb rising electricity costs.”