California Senate Greenlights Energy Reform Bills as Democrats Pursue “Affordability”
Source: San Jose Mercury/Bay Area News Group | By Grant Stringer
After falling short last year, lawmakers in the state Senate are advancing a flurry of bills intended to give customers relief from ever-rising electricity bills and rein in investor-owned utilities like PG&E, which is raking in record profits. The plans are central to the promise of Gov. Gavin Newsom and top Democrats to make California more affordable.
SB 254 would make structural changes to the way the California Public Utilities Commission regulates utilities and the manner of financing for pricey infrastructure projects.
The bill is a cornerstone of Democrats’ “affordability” agenda this year. It includes a mix of short-term and long-term benefits for consumers, said Mark Toney, executive director of TURN, which supports the bill. Under the bill, the state would pour more money from its emissions Cap and Trade program into bill relief for customers. Currently, PG&E ratepayers receive $58 twice a year, according to the utilities commission. Plus, low-income customers would also receive bigger subsidies if the bill passes — though it’s unclear how much. The bill also would require utilities to finance $15 billion of spending at lower interest rates and without any profits for investors. And in a major development, the bill would create a public authority to finance transmission projects, instead of private investors. Becker’s office contends that would provide “billions in long term savings to ratepayers.” Utilities were opposed to the bill, and the California Chamber of Commerce condemned it in recent comments to a legislative committee. Toney at TURN, which supports the bills and many others this session, said he’s “feeling optimistic that the Senate and Assembly leadership are going to stand up for ratepayer affordability and will stand strong against PG&E and other utility lobbying.”
