Lawmakers Send Newsom a High-Stakes Energy Overhaul Tied to Wildfires, Utilities and Oil
Source: CalMatters | By Alejandro Lazo and Jeanne Kuang
Gov. Gavin Newsom closed out the legislative year with one of the most sweeping overhauls of California’s energy and climate policies in decades — a package that could give him a presidential debate-stage talking point on rising energy costs as the Democratic Party shifts its focus to affordability. The six-bill deal — passed Saturday after lawmakers extended their session by an extra day because of last-minute dealmaking — was sold as a way to ease gas prices and soaring electricity bills while preserving the state’s signature climate programs. Ratepayers are expected to get some relief through measures to cut the cost of building transmission lines, and an expanded cap-and-trade energy credit aimed at blunting rising energy bills. They also will get some protection from utilities hiking rates based on the cost of wildfire-proofing their infrastructure, such as by putting power lines underground. But they’ll also continue paying $9 billion over the next decade into a fund to compensate wildfire victims.
Consumer advocates, led by The Utility Reform Network, warned the change could weaken California’s control over its clean energy agenda and hand more power to a federal government under Trump that is siding with fossil fuels. Some environmental and consumer groups shared that concern. The shift is important because California has spent decades building one of the cleanest grids in the world and the move to open up that system to other Western states could reshape how both renewable and fossil power move across the region.
Source: The Cool Down | By Leslie Satler
To consumer advocates, the change appears tied to mounting frustration over utility prices. Mark Toney, executive director of The Utility Reform Network, said, "I'd say we saw today a lot of evidence that Gov. Newsom has really prioritized affordability and accountability to an increased extent.”
California's soaring electricity bills have made affordability a driving force in energy policy. Gov. Gavin Newsom's latest move is a package of electricity-affordability bills built around home batteries and other smart devices that could help lower and reduce the need for gas-fired backup plants.
Source: New York Post | By Maria Pena
“Community solar and storage is a way to increase clean energy generation, and so that would be an example, a very specific example, of something the state could do,” Toney said. A major factor during heat waves is solar power, which not only provides electricity during the day but helps charge batteries that can supply power later, Toney explained.
Gov. Gavin Newsom vetoed AB 1813 on Sept. 30, legislation authored by Assemblymember Christopher Ward that would have created a customer renewable energy subscription program aimed at expanding access to community renewable energy projects. The Utility Reform Network supported the legislation.
Source: The Institute for Energy Research |
According to Mark Toney, Executive Director of the Utility Reform Network, a ratepayer advocacy group, “Collectively these measures protect ratepayers from subsidizing the significant energy consumption of data centers, ensuring that the data centers pay upfront for the extra infrastructure that must be built to operate them, and pay their fair share for wildfire mitigation and other ratepayer-funded programs.”
On September 21, Governor Gavin Newsom signed seven bills regulating the data center industry in California, imposing new requirements on electricity costs, water use, and local oversight. The legislation requires data centers to provide information on electricity use, water consumption, land use, and workforce needs, giving local communities more information to assess proposed projects.
Source: Communications Daily | By Philip Athey
However, the Utility Reform Network (TURN) urged the CPUC to reject NaLA’s proposal to allow providers to set prices because it “would essentially guarantee that the [specific support amount] would be locked at the highest amount the Commission allows, regardless of the competitiveness of providers’ offerings.”
Industry commenters said a proposed update to California Lifeline’s minimum-service standards and subsidy levels would pose logistical challenges for service providers that could push them out of the program if the California Public Utilities Commission (CPUC) adopts the plan without any changes.
Source: Canary Media | By Jeff St. John
Newsom’s move drew praise from consumer advocates, clean energy trade groups, and environmental organizations. “I’d say we saw today a lot of evidence that Gov. Newsom has really prioritized affordability and accountability to an increased extent,” said Mark Toney, executive director of The Utility Reform Network, a ratepayer advocacy group that sponsored seven bills this legislative session, all of which were passed into law.
California Gov. Gavin Newsom (D) defied political expectations on Wednesday and signed into law a slate of energy-affordability legislation aimed at containing the utility spending that is driving up electricity costs in the Golden State.
Source: Communications Daily | By Philip Athey
The Utility Reform Network said the monitoring period in the proposal is too long and could subject California Lifeline customers to two years of price increases before a higher subsidy level is introduced. The group instead recommended an eight-month monitoring period with an updated subsidy level presented in 12 months.
Nearly all industry and public advocacy organizations said they support a proposed decision from the California Public Utilities Commission (CPUC) to increase the subsidy level and minimum service requirements for the state's Lifeline program, suggesting only minor changes and clarifications. But one, Assurance Wireless, said the changes in the proposal were so significant that they potentially overstep the CPUC’s legislative mandate and raise the question of federal preemption.
Source: Capitol Weekly | By Opinion by Mark Toney, Executive Director of TURN
SB 905 would help ensure utilities don’t get overpaid for work that already benefits the company by requiring the California Public Utilities Commission to examine whether the profit margins utilities earn on wildfire-related spending — like undergrounding power lines — are justified. This work already protects utilities from costly wildfire lawsuits, and that protection shouldn’t come with an extra reward: outsized profit margins billed to customers who are struggling to keep the lights on.
Electricity bills have skyrocketed over the past few years for residential and business customers of Pacific Gas & Electric, SoCal Edison and San Diego Gas & Electric — in large part because of the $40 billion customers have paid to cover California’s wildfire costs.
Source: Canary Media | By Jeff St. John
Google and PG&E have been tussling with the Sierra Club, The Utility Reform Network, and others over how to allocate the cost of connecting that 250-MW “large load” to the utility transmission grid. The big issue? How much of that cost should be borne by PG&E customers at large versus by Google itself.
California has yet to take full advantage of rooftop solar, backup batteries, and other home devices to create virtual power plants (VPPs) that can help its stressed-out grid — even though it has more of those distributed energy resources than any other state. Earlier this month, utility Pacific Gas & Electric launched its latest effort to improve on that poor record via an ambitious partnership with friendly neighborhood tech giant Google and pro-electrification nonprofit Rewiring America.
Source: Politico | By Tyler Katzenberger, Chase Difeliciantonio, and Christine Mui
Mark Toney, executive director of The Utility Reform Network, a California-based nonprofit, told POLITICO he noticed ”more urgency” and “more positive signals from the governor’s office” to regulate data centers this year. He contrasted it to last year, when he said “there was not a sense that California had to be out front — and in fact, California was at risk of falling behind.”
What a difference a year makes. Last year, California Gov. Gavin Newsom vetoed legislation that would have tracked data centers’ water use and signed a pared-back study measure on their electricity rates. Just a few months ago, he was downplaying the importance of the issue altogether.
Source: From the Office of Governor Gavin Newsom |
Mark Toney, Executive Director, TURN: “Collectively these measures protect ratepayers from subsidizing the significant energy consumption of data centers, ensuring that the data centers pay upfront for the extra infrastructure that must be built to operate them, and pay their fair share for wildfire mitigation and other ratepayer-funded programs. We are grateful for the Governor’s leadership to hold these data centers accountable.”
Yesterday, Governor Gavin Newsom signed the most comprehensive data center laws in the nation, providing communities more control on water, electricity, and land use.