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California Legislature Passes SB 254; Landmark Electricity Affordability Legislation Expected to Save Ratepayers Billions

Source: Lake County News | By Lake County News Reporters

“Given the utility affordability crisis that residents, agriculture, industrial businesses, small businesses and older customers face, we need to work harder than ever in 2026,” Toney said. “Voters have been crystal clear in demanding that legislators put customer affordability ahead of utility company lobbying, and TURN is expecting lawmakers to roll up their sleeves to make utility affordability a top priority in the next legislative session.”

The California Legislature passed landmark legislation on Saturday that supporters said will save utility customers billions on their electricity bills annually, while ensuring the state’s wildfire fund, an insurance policy for utilities, remains solvent in the wake of claims from the 2025 Eaton Fire.  SB 254 (Becker, D-13) will help stem the tide on electricity rate increases while replenishing the state’s wildfire fund. The legislation was backed by strong support from voters: Recent polling shows 85% of voters say it's important for their representatives to do everything possible to lower electricity bills this year.

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Newsom’s Big Energy Win – And What’s Next

Source: Politico | By Camille Von Kaenel and Alex Nieves

As a result, even champions of the package acknowledged the electricity legislation could do more to stabilize prices than drive them down long term. Mark Toney, the executive director of the Utility Reform Network, a ratepayer advocacy group, called the electricity legislation “a first step in the right direction.”  “Given the utility affordability crisis that residents, agriculture, industrial businesses, small businesses and older customers face, we need lawmakers to work harder than ever in 2026,” he said.

Gov. Gavin Newsom used California’s legislative session to take a big step toward neutralizing a growing problem across the state and one of his biggest political liabilities: high energy costs.  The package of bills lawmakers sent to his desk Saturday includes measures to expand oil drilling and shore up utilities against wildfire costs — all in the hopes of stabilizing spiraling electricity bills and gas prices, which, despite repeated attempts to rein them in, remain among the highest in the nation.

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Electric Customers to Pay $9 Billion More to State Wildfire Fund Under Proposed Bill

Source: LA Times | By Melody Petersen

Mark Toney, executive director of the Utility Reform Network, a consumer group, said he was disappointed that ratepayers — who are already paying the country’s second highest electric rates — would have to pay more. But he pointed to some measures that could help reduce the upward pressure on bills.  For example, utilities would be required to finance some expensive transmission projects through a lower-cost method of public financing that legislators said could save ratepayers billions of dollars.  Toney said after reviewing the bill’s language, his group planned to support it even though it “falls short of addressing the growing affordability crisis.”

California electric customers would pay $9 billion more to shore up the state’s wildfire fund under a last-minute deal reached behind closed doors that was introduced as legislation on Wednesday.  Southern California Edison, and the state’s two other large for-profit electric companies, had been lobbying Gov. Gavin Newsom and legislative leaders, urging them to pass legislation to replenish the state’s $21-billion fund that pays for damages of utility-caused fires. State officials have warned the fund could be wiped out by damages from the Eaton fire, which killed 19 people and destroyed a large swath of Altadena on Jan. 7.  Customers of the three utilities are already on the hook for contributing $10.5 billion to the original fund through a surcharge of about $3 on their monthly bills.

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Changes Are Coming to Your PG&E Bill. Here’s What to Expect:

Source: San Francisco Chronicle | By Julie Johnson

Mark Toney, executive director of The Utility Reform Network, or TURN, said the $5 bill reduction was “cold comfort” given the unprecedented bill hikes from last year. In 2024, PG&E residential customers began paying about $440 more annually for gas and electricity compared to 2023, according to a Chronicle analysis of PG&E data. 

Pacific Gas and Electric Co. electricity bills will drop by about $5 for average households this month as charges for wildfire safety upgrades and emergency response are removed.  PG&E spokesperson Lynsey Paulo said the company has no other rate changes — up or down — planned for the rest of 2025. Combined gas and electric bills are expected to decrease again at the start of 2026, she said. That amount will be announced in late December once end-of-the year-calculations are finalized. “We are driving toward reducing prices further, and we’re making progress,” Paulo said. “You’ll see it again in 2026.” PG&E bills have changed only moderately this year, starting with a $1 increase for typical households in January and another $3 added charge to average residential bills that began in March. In both cases, new charges were partly offset by temporary charges that were removed. 

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Opinion: Take Action to Slow California’s Out-Of Control Energy Costs

Source: The Mercury News | By Mark Toney & Michael Boccadoro

California is in the midst of a profound utility bill affordability crisis. Over the last decade, PG&E residential customers have watched their monthly electric bills skyrocket — from $88 in January 2015 to $215 a month, (a staggering 250% increase). This additional $1,600 annual burden forces families to make devastating trade-offs between utility bills and groceries, electricity and prescriptions, keeping service and even remaining housed. And it is not just residents teetering on the brink of survival.  Rising utility bills are impacting large industrial companies and local shops across the state. From steel mills and glass factories, to fruit, vegetable and dairy farmers, to neighborhood restaurants and small businesses, escalating utility bills have created an unsustainable burden. The good news is that after months of advocacy driven by a “big tent” of residential, small business, industrial and agricultural supporters, the Legislature has assembled the most significant electricity affordability package in decades. The bad news is that PG&E, SoCal Edison, Sempra, and Wall Street investment firms are actively resisting affordability legislation, because delivering savings to customers could trim utilities’ profits. Their message is clear: protecting shareholder profits is more important than providing relief for California families and businesses. Two major bills would unlock billions in customer savings and prioritize affordability over utility profit margins. State Senator Josh Becker’s SB 254 and Assemblymember Cottie Petrie-Norris’s AB 825 target three key areas where California can significantly reduce costs, while maintaining reliability and safety. Passing these bills would make an enormous difference.  First, they would save customers roughly $7.5 billion over 10 years by eliminating excessive shareholder profits on $15 billion in new grid spending, per analysis by The Utility Reform Network, or TURN. $15 billion in mandated ratepayer-backed bonds carries much lower interest costs than traditional shareholder financing, which includes guaranteed profit margins that force ratepayers to pay financing costs of 14%. Second, they would authorize public financing options for new transmission lines — infrastructure California urgently needs to meet growing electricity demand. By shifting from investor-owned utility financing to public-private partnerships, the state could save ratepayers more than $3 billion annually, totaling approximately $123 billion over 40 years. Third, they would require utilities to submit an inflation–constrained alternative, whenever they submit a rate increase that exceeds the rate of inflation. This will provide the California Public Utilities Commission the opportunity to use inflation as the starting point, placing the burden upon utilities to justify every dollar over inflation, rather than only having a sky-high starting point determined by utilities, that requires ratepayer advocates to whittle down the proposal dollar by dollar. Mark Toney is executive director of The Utility Reform Network (TURN). Michael Boccadoro is executive director of the Agricultural Energy Consumers Association (AECA).

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PG&E Monthly Bills Fall as Some Wildfire and Emergency Costs Recede

Source: Bay Area News Group/Marin Independent Journal | By George Avalos

The Utility Reform Network consumer group, known as TURN, noted that PG&E’s current reduction in monthly bills compares poorly to the trend of recent years. “PG&E does not deserve credit for a temporary reduction in monthly bills, which is the result of customers finally paying off some of the billions in corporate overspending,” said Mark Toney, TURN’s executive director. “PG&E announcing that electricity bills will be coming down by $5 a month is cold comfort.”

PG&E bills are heading lower this month as some costs related to wildfires and emergency responses start to recede and vanish from the utility’s rate base.  Customers can expect monthly electricity costs to drop by an average of $5 for the typical residential ratepayer who uses 500 kilowatt hours a month and isn’t on a subsidized billing plan. That equates to a 2.1% decrease. Gas bills are slated to drop an average of 39 cents a month for the typical customer, which equates to a decline of 0.4%. These calculations apply to customers who use 31 therms a month.  “These reduced bills are significant because no more rate changes are expected in 2025,” said PG&E spokesperson Mike Gazda. “Bills are expected to go down in 2026.”

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PG&E Bills Set to Decrease as Costs Relating to Wildfires Recede

Source: SSBCrack News | By News Desk

Mark Toney, executive director of the Utility Reform Network (TURN), criticized PG&E, suggesting that the temporary reduction in monthly bills stems from customers finally absorbing some of the company’s significant overspending. He remarked that the announcement of a $5 decrease in electricity bills feels more like a minimal consolation.

Customers of Pacific Gas and Electric (PG&E) can look forward to lower utility bills this month as the utility begins to phase out certain costs associated with wildfire management and emergency responses from its rate base. The average residential electricity charge is expected to decrease by approximately $5 for users consuming 500 kilowatt-hours per month, marking a 2.1% reduction. Similarly, gas bills will see an average decline of 39 cents monthly for those using 31 therms. PG&E spokesperson Mike Gazda noted the significance of the changes, indicating that no further rate adjustments are anticipated for 2025, with expectations for continued drops in 2026. In a previous statement in April 2024, PG&E CEO Patricia Poppe expressed optimism for a future where customers might experience declining bills.

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California May Give Up a Lot of Freedom to Join Western Power Grid

Source: KTUV Fox 2 News | By Tom Vacar

"And, the fact is, no one has presented a convincing argument that this is gonna save ratepayers a dime," said Mark Toney of the Utility Reform Network.

Governor Gavin Newsom wants California to join a power grid covering the western states. The governor says, "Over $1 billion in economic benefits to our state is on the line and failure to get this done will mean higher electric bills, more pollution and a less reliable power grid.” Now a bill is being considered called SB 540. But, under the original bill, there were guard rails, built-in protections to forbid price gouging as well as market manipulation by traders. Without guardrails, critics say California would also give up many of its environmental controls, power choices, the requirement that power supplies make maximum supplies and minimized prices, including coal plants of which the western states have many.     

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CPUC OKs Large Increase to PG&E Cost Cap

Source: RTO Insider | By David Krause

While PG&E said the increased cost cap would translate into a 1.8% rate increase for an average residential customer, the CPUC countered that the “evidence does not support” this projected amount. The Utility Reform Network (TURN) estimates proposed cost cap increases would cost $72.50/year for a residential customer that uses 500 kWh/month. 

The California Public Utilities Commission approved a plan to increase Pacific Gas and Electric’s cost cap for customer energization projects in 2025 and 2026 by more than $1.5 billion, despite acknowledging the utility did not provide data to support its forecast growth in energization applications during those years.  The increased cap amounts are mountainous: PG&E can now seek to recover costs for up to about $1.1 billion in 2025 and $1.7 billion in 2026 for certain customer energization projects, according to the decision. In a 2024 decision, the CPUC approved cost caps of about $619 million in 2025 and $669 million in 2026 for these types of projects. 

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California Taxpayers Gave PG&E a Huge, Supposedly Safe Loan. The Losses are Already Mounting

Source: CalMatters | By Malena Carollo

The shortfall is emerging at a time when the state’s general fund is already facing a $12 billion budget hole, and advocates, lawmakers and regulators have raised concerns about portions of the loan benefiting PG&E shareholders, which the law forbids. “It’s not a loan,” Matthew Freedman, lawyer for The Utility Reform Network, said. “It’s a gift.”

Two weeks before the 2022 legislative session ended, Gov. Gavin Newsom’s administration came to lawmakers with a big ask: authorize a $1.4 billion state loan to keep open California’s last nuclear power plant, Diablo Canyon. The money was supposed to be a stopgap that would be fully repaid by an expected federal award. There was even a fail-safe: if the award fell short, other federal funds or profits from Diablo Canyon’s final year could cover the difference. The bill passed. Despite promises from Newsom’s administration and legislators at the time, CalMatters found the state may be required to forgive as much as $588 million, about 42% of the loan. 

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California Lawmakers Have a Radical Idea for Lowering Electricity Bills

Source: Canary Media | By Jeff St. John

But the electricity cost crisis has made rate reform ​“a top-tier issue in California,” said Matthew Freedman, senior attorney at The Utility Reform Network (TURN), a consumer advocacy group that has joined other consumer and environmental justice groups in supporting SB 254. Different from what we’ve seen in the past — and the solutions being sought by the legislature are more ambitious than what we’ve seen in recent years,” he said. TURN is hoping these dynamics will allow the public-financing portions of the bills to secure support from Gov. Gavin Newsom (D) and remain in whatever electricity-affordability legislation emerges before the end of the state legislative session in September.  TURN’s analysis indicates that pulling $15 billion out of the rate base of California’s three big utilities, as SB 254 and AB 825 propose to do, could save about $8 billion over 30 years, with $7.5 billion of that savings coming in the first 10 years. That equates to about 2–3% of an average residential customer’s bill, or about $4–$5 a month, Freedman said. 

Utility costs have reached a boiling point in California, with customers of the state’s three biggest utilities — Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric — now paying almost twice the U.S. average for their power. Nearly one in five customers of these utilities is behind on paying their electric bills, according to a May report from state regulators. The bills — Senate Bill 254, sponsored by Sen. Josh Becker, and Assembly Bill 825, sponsored by Assemblymember Cottie Petrie-Norris, both Democrats — aim to lower electricity costs for Californians. Both include provisions that would force the big three utilities to accept public financing for a portion of the tens of billions they plan to spend on their power grids. 

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California Cut Coal From Its Energy Supply. Why it Might Plug Back Into Fossil Fuels

Source: Cal Matters | By Alejandro Lazo and Jeanne Kuang

The Utility Reform Network, a consumer advocate group, has taken a neutral position on the measure and threatened to oppose it unless California retains some autonomy and a strict procedure to withdraw. Before passing the bill, senators amended it to include more safeguards requested by skeptics. Those include a newly proposed oversight council, composed of some California appointees and elected officials, which would have to sign off on California’s participation in the market. The council could also direct the state and its utilities to back out in the future — if, say, federal regulation or the new market operator threatens the state’s climate goals. “It’s about creating an exit strategy,” said Matthew Freedman of The Utility Reform Network. “Given what we’re seeing at the federal level now, we cannot be too careful.”

With electricity prices rising and pressure to keep the lights on, California is racing to create an expanded power market with other Western utilities to trade vast amounts of electricity. An expanded market could include climate-aligned states such as Oregon and Washington but potentially also coal-burning ones such as Wyoming, Utah and New Mexico. 

Senate Bill 540, which paves the way, passed the state Senate earlier this summer with bipartisan support and is now before the state Assembly. Gov. Gavin Newsom wants a deal this year. 

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Trump is Cutting Solar Funding- But California is Taking the Heat

Source: Politico | By Noah Baustin and Camille Von Kaenel

“The PUC’s slow-walking of this process has likely squandered $250 million in federal support,” said Matthew Freedman, a staff attorney with The Utility Reform Network. “As of today, we have no program, no development, federal tax credits that are about to sunset, and now an announcement that Solar for All funding is going to be pulled by the Trump administration.”

The Trump administration wants to cancel solar programs that let everyday people tap into nearby panels. In California, the technology never even got off the ground. Almost none of the $250 million that California received from the Inflation Reduction Act’s Solar for All program, which the Trump administration is making plans to terminate as soon as this week, has made it out the door yet.

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Why Is My Bill So High? And Other Frequently Asked Questions About PG&E Bills

Source: SF Chronicle | By Jessica Roy

Lee Trotman, the communications director for The Utility Reform Network, pointed to a different explanation. “The reason your bill is so high is because of the constant rate increases,” he said. There have been numerous rate increases in recent years, he said, including six in 2024, one this past January, and another in March.

PG&E’s residential rates are more than twice the national average, and have increased by an average of 12.5% annually for the past six years. From January 2015 to April 2025, residential rates have increased by 104%. Jennifer Robison, a spokesperson for PG&E, said weather can be a major contributor.  Another reason, she said, could be a malfunctioning appliance suddenly sucking up more energy than usual.

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PG&E Monthly Bills Have ‘Stabilized’ and Will Drop Lower, Utility Says

Source: The Mercury News/Bay Area News Group | By George Avalos

“It’s hard to believe, but PG&E is on its way to a third straight year of record-breaking profits,” Toney said. Toney was skeptical that PG&E would be able to successfully keep bills flat or heading lower, considering the significant expenditures the company is planning, including $63 billion for capital projects in the coming years. “I am very concerned about this $63 billion capital spending plan,” Toney said. “We don’t see an end in sight to rate increases.”

The investor-owned utility posted a profit of $521 million during its April-through-June second quarter of 2025, up 0.2% from $520 million in profits for the same quarter a year ago, the company reported Thursday. Despite the relatively subdued increase in net income, Mark Toney, executive director with the consumer group The Utility Reform Network, believes that PG&E’s profits are too high.

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Newsom’s Plan to Raise $18 Billion for State Wildfire Fund Faces Tough Opposition

Source: Los Angeles Times | By Melody Petersen

“We’re very disappointed to be at a point where there is even talk of more ratepayer money going to the wildfire fund,” said Mark Toney, executive director of the Utility Reform Network, a consumer advocacy group in San Francisco. Toney said state officials told him in 2019 that there was a 99% chance the fund would last 20 years. Six years later, it could be wiped out by damages from the Eaton fire alone.

The three utilities have been lobbying in Sacramento, asking that the fund be strengthened, since January when the Eaton fire roared through Altadena after igniting under an Edison transmission tower. But utility executives say they are opposed to their shareholders paying more. Newsom and lawmakers created the state wildfire fund in 2019 through a bill known as AB 1054 to protect the three utilities from bankruptcy in the event their electric lines sparked a catastrophic wildfire. The first $21 billion into the fund was paid half by customers and half by utility shareholders.

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Edison’s Plan to Pay Eaton Fire Victims Could Mean Less Litigation, Less Compensation

Source: Los Angeles Times | By Melody Petersen

Mark Toney, executive director of the Utility Reform Network, said Edison’s program had the potential to reduce costs that otherwise must be covered by the wildfire fund, which was established in part by a surcharge on the bills paid by customers of Edison, Pacific Gas & Electric and San Diego Gas & Electric.

Southern California Edison’s plans to compensate Eaton fire victims for damage were met with skepticism Thursday from lawyers representing Altadena residents, but drew tentative support from others who say the initiative could help shore up the state’s $21-billion wildfire fund. The utility announced its Wildfire Recovery Compensation Program this week, saying it would be used to quickly pay victims, including those who were insured, while avoiding lengthy litigation.

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California Bill Modernizing 'Carrier of Last Resort' Rules Advances

Source: Broadband Breakfast | By Jennifer Michel

Mark Toney, executive director of The Utility Reform Network, said AB 470 would allow providers to “pick and choose which neighborhoods they serve,” eliminating long-standing requirements for universal phone access.

Assembly Bill 470, which advanced in the state legislature Thursday after a contentious July 15 hearing, would allow providers like AT&T to withdraw from their Carrier of Last Resort (COLR) obligations in areas deemed to be “well-served” by multiple, competing service providers. At the hearing before California’s Senate Energy, Utilities and Communications Committee, proponents described AB 470 a long-overdue step to modernize California’s communications infrastructure. Critics, meanwhile, warned the bill could strand rural communities without a dependable fallback for emergency calls, repairs, or basic voice service.

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AT&T Urges Calif. Lawmakers to Pass COLR Relief

Source: Communications Daily | By Gabriella Novello

"Without COLR obligations, telephone companies can pick and choose which neighborhoods they serve with copper, VoIP or fiber," said TURN Executive Director Mark Toney.

AT&T called on California lawmakers Tuesday to grant it and other carriers relief from carrier of last resort (COLR) obligations. Meanwhile, the Communications Workers of America (CWA) and The Utility Reform Network (TURN) urged the committee to maintain its nearly 30-year-old rules.

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