Gov. Newsom issues executive order to lower electric bills

With Californians angry about their skyrocketing electric bills, Gov. Gavin Newsom issued an executive order Wednesday to give them some relief.

The governor’s order directs the state Public Utilities and Energy Commissions to find ways to try to lower utility bills in the future, or at least prevent them from rising so quickly.

Among the actions he’s calling for is a closer look at how utilities spend money to prevent transmission lines from sparking wildfires. State officials say wildfire mitigation costs now account for about 13% of customers’ monthly electric bills.

“We are taking action to address rising electricity costs and save consumers money on their bills,” Newsom said. “California is proving that we can tackle affordability challenges while continuing our industry-leading efforts to combat the climate crisis.”

The governor issued the order just days before Tuesday’s election, with the kitchen table economy a top priority.

California now has the second highest electricity rates in the country after Hawaii. Bills for private customers have increased no less than 110% in the past decade.

In the past three years alone, bills for customers of the three largest profitable utilities – Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric – have increased by 20% to 50%. These most recent rate increases were reviewed and approved by Newsom appointees at the state Public Utilities Commission.

The executive order is just one of Newsom’s recent steps to reduce rising energy costs. He and Democratic lawmakers were released in August a series of energy-related bills just days before the term ended. That same month, the governor ordered lawmakers back to Sacramento for a special session to debate a bill that would require oil refineries to increase gasoline reserves in an effort to prevent price spikes at the pump.

The governor’s staff says Newsom is committed to the state’s ambitious climate goals, including having 100% clean electricity by 2045. But he has grown concerned as electricity rates have risen to cover the costs of rapidly building solar farms and other renewable energy by the state. , they say.

Newsom’s executive order asks his administration to look for “underperforming or underutilized programs” paid for by electric customers that could be terminated. It says any unused money in these programs must be returned to customers.

Additionally, the order asks the state Air Resources Board to determine how to increase the California Climate Credit. Most Californians get the credit on their electric and gas bills twice a year. The credit is 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 all federal financing options that could reduce electricity costs.

An early plan from Newsom’s office for the executive order, which was reviewed by The Times, asked the Public Utilities Commission to explore alternative ways to finance the construction of power lines and other infrastructure. Currently, building infrastructure is an important way for utilities to increase their profits because they pass the costs on to ratepayers over many years, assuming an annual interest rate of typically 10.5%.

Consumer groups say lowering this rate could lead to 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 finance infrastructure was not included in the executive order because it would require changing legislative statutes.

In August, Newsom backed away from an earlier plan to cut infrastructure rates after criticism from major utilities and the electric union, according to a report from the Sacramento Bee.