Affordable Vibes Only Go So Far

Source: Politico |  By Noah Baustin

THREADING THE NEEDLE: California energy regulators tried hard to capture the in-vogue affordability rhetoric as they marginally cut the profit rate that investor-owned utilities will be allowed to pass onto their shareholders in 2026. But they’re playing to a tough crowd: Everyone from investment bankers to affordability hawks ended up bashing their final decision.  

Mark Toney, executive director of affordability group The Utility Reform Network, said in an interview that the small drop in the return on equity won’t make up for other major CPUC approvals of capital spending to reduce wildfire risk on the grid, which will have the overall effect of increasing ratepayer costs in the long run. “The CPUC giveth with one hand, they taketh away with another hand, and that’s what’s happening right now,” Toney said, expressing frustration with the agency’s utility-friendly decision on a recent major wildfire resilience investment decision.