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State regulators vote to keep utility profits high, angering customers across California

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State regulators vote to keep utility profits high, angering customers across California

Despite complaints from customers about rising electric bills, the California Public Utilities Commission voted 4 to 1 on Thursday to keep profits at Southern California Edison and the state’s other big investor-owned utilities at a level that consumer groups say has long been inflated.

The commission vote will slightly decrease the profit margins of Edison and three other big utilities beginning next year. Edison’s rate will fall to 10.03% from 10.3%.

Customers will see little impact in their bills from the decision. Because the utilities are continuing to spend more on wires and other infrastructure — capital costs that they earn profit on — that portion of customer bills is expected to continue to rise.

The vote angered consumer groups that had detailed in filings and hearings at the commission how the utilities’ return on equity — which sets the profit rate that the companies’ shareholders receive — had long been too high.

Among those testifying on behalf of consumers was Mark Ellis, the former chief economist for Sempra, the parent company of San Diego Gas & Electric and Southern California Gas. Ellis estimated that the companies’ profit margin should be closer to 6%.

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He argued in a filing that the California commission had for years authorized the utilities to earn an excessive return on equity, resulting in an “unnecessary and unearned wealth transfer” from customers to the companies.

Cutting the return on equity to a little more than 6% would give Edison, Pacific Gas & Electric, SDG&E and SoCalGas a fair return, Ellis said, while saving their customers $6.1 billion a year.

The four commissioners who voted to keep the return on equity at about 10% — the percentage varies slightly for each company — said they believed they had found a balance between the 11% or higher rate that the four utilities had requested and the affordability concerns of utility customers.

Alice Reynolds, the commission’s president, said before the vote that she believed the decision “accurately reflects the evidence.”

Commissioner Darcie Houck disagreed and voted against the proposal. In her remarks, she detailed how California ratepayers were struggling to pay their bills.

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“We have a duty to consider the consumer interest in determining what is a just and reasonable rate,” she said.

Consumer groups criticized the commission’s vote.

“For too long, utility companies have been extracting unreasonable profits from Californians just trying to heat or cool their homes or keep the lights on,” said Jenn Engstrom at CALPIRG. “As long as CPUC allows such lofty rates of return, it incentivizes power companies to overspend, increasing energy bills for everyone.”

California now has the nation’s second-highest electric rates after Hawaii.

Edison’s electric rates have risen by more than 40% in the last three years, according to a November analysis by the commission’s Public Advocates Office. More than 830,000 Edison customers are behind in paying their electric bills, the office said, each owing a balance of $835 on average.

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The commission’s vote Thursday was in response to a March request from Edison and the three other big for-profit utilities. The companies pointed to the January wildfires in Los Angeles County, saying they needed to provide their shareholders with more profit to get them to continue to invest in their stock because of the threat of utility-caused fires in California.

In its filing, Edison asked for a return on equity of 11.75%, saying that it faced “elevated business risks,” including “the risk of extreme wildfires.”

The company told the commission that its stock had declined after the Jan. 7 Eaton fire and it needed the higher return on equity to attract investors to provide it with money for “wildfire mitigation and supporting California’s clean energy transition.”

Edison is facing hundreds of lawsuits filed by victims of the fire, which killed 19 people and destroyed thousands of homes in Altadena. The company has said the fire may have been sparked by its 100-year-old transmission line in Eaton Canyon, which it kept in place even though it hadn’t served customers since 1971.

Return on equity is crucial for utilities because it determines how much they and their shareholders earn each year on the electric lines, substations, pipelines and the rest of the system they build to serve customers.

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Under the state’s system for setting electric rates, investors provide part of the money needed to build the infrastructure and then earn an annual return on that investment over the assets’ life, which can be 30 or 40 years.

In a January report, state legislative analyst Gabriel Petek detailed how electric rates at Edison and the state’s two other biggest investor-owned electric utilities were more than 60% higher than those charged by public utilities such as the Los Angeles Department of Water and Power. The public utilities don’t have investors or charge customers extra for profit.

Before the vote, dozens of utility customers from across the state wrote to the commission’s five members, who were appointed by Gov. Gavin Newsom, asking them to lower the utilities’ return on equity.

“A profit margin of 10% on infrastructure improvements is far too high and will only continue to increase the cost of living in California,” wrote James Ward, a Rancho Santa Margarita resident. “I just wish I could get a guaranteed profit margin of 10% on my investments.”

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Video: Senate Republicans Block Limits to Trump’s War Powers

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Video: Senate Republicans Block Limits to Trump’s War Powers

new video loaded: Senate Republicans Block Limits to Trump’s War Powers

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Senate Republicans Block Limits to Trump’s War Powers

Senate Republicans voted against a Democratic bill that would have required President Trump to obtain congressional authorization to continue waging war against Iran.

“The yeas are 47. The nays are 53. The motion to discharge is not approved.” “President Trump decided to attack Iran. That decision was profound, deliberate and correct. The president understands the weight of war.” “Why is Donald Trump hellbent on making history repeat itself? Why is he plunging America headfirst into a war that Americans do not want, and which he cannot even explain? The American people deserve a say, and that is what our resolution is about.”

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Senate Republicans voted against a Democratic bill that would have required President Trump to obtain congressional authorization to continue waging war against Iran.

By Shawn Paik

March 5, 2026

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DHS defends McLaughlin against allegations husband’s company profited millions from ad contracts: ‘Baseless’

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DHS defends McLaughlin against allegations husband’s company profited millions from ad contracts: ‘Baseless’

NEWYou can now listen to Fox News articles!

EXCLUSIVE: Newly obtained financial statements shed light on claims that former Department of Homeland Security (DHS) Assistant Secretary Tricia McLaughlin’s husband’s company made millions from a DHS advertising campaign.

DHS Secretary Kristi Noem faced intense questioning during a Senate Judiciary Committee hearing Tuesday, and Sen. John Kennedy, R-La., specifically called out the agency for contracting a public relations firm headed by McLaughlin’s husband, Benjamin Yoho.

“I have personally reviewed the allegations against Ms. McLaughlin, and I find them to be baseless,” DHS General Counsel James Percival told Fox News Digital. “Nothing illegal or unethical occurred with respect to these contracts. Ms. McLaughlin was not involved in selecting any subcontractors.

“She is, however, a superstar in the public affairs world, so I am not surprised that she married a successful businessman whose services were attractive to these outside firms.”

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Newly obtained financial statements address allegations that former Department of Homeland Security Assistant Secretary Tricia McLaughlin’s husband’s firm improperly profited from a multimillion-dollar DHS ad campaign. Lawmakers pressed Secretary Kristi Noem over the contracts during a heated Senate hearing. (Jack Gruber/USA Today)

Kennedy alleged that Yoho’s firm, The Strategy Group, “got most of the money” out of what the Louisiana Republican senator says was $220 million in “television advertisements that feature [Noem] prominently.”

“I’m sorry,” Kennedy said. “Safe America Media was a company formed 11 days before you picked them. And that the Strategy Group got most of the money. And the head of that is married to your former spokesperson.”

“It’s just hard for me to believe knowing the president as I do, that you said, ‘Mr. President, here’s some ads I’ve cut, and I’m going to spend $220 million running them,’ that he would have agreed to that,” Kennedy explained. “I don’t think Russ Vought at OMB [Office of Management and Budget] would have agreed to that.”

‘YOU SHOULD BE ASHAMED!’: PROTESTER DRAGGED FROM KRISTI NOEM’S SENATE HEARING

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Senate scrutiny intensified over a DHS advertising campaign after Sen. John Kennedy, R-La., questioned whether a firm linked to McLaughlin’s husband benefited unfairly. DHS officials and the company deny any wrongdoing or multimillion-dollar profits. (Andrew Harrer/Bloomberg via Getty Images)

The Strategy Group is a conservative advertising agency for which Yoho serves as CEO.

Figures obtained by Fox News Digital show a slightly lesser total advertising expenditure of approximately $185 million, with a total of roughly $146.5 million going to a campaign called “Save America.”

However, of the total that went to “Save America,” roughly $348,000 went to production costs, while the remaining $142 million went to “media buys.”

Sources at DHS say that media buys are the cost of actually buying the ads themselves, whether purchased from social media or for a TV ad.

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Kennedy also alleged that the bidding process for the contracts never took place and that Safe America Media’s recent founding was a cause for concern and collusion between McLaughlin and her husband’s business. 

WATCH THE MOST VIRAL MOMENTS AS KRISTI NOEM’S HEARING GOES OFF THE RAILS

Debate over DHS’ “Save America” ad campaign intensified as senators challenged its costs and contractor ties, even as agency officials touted the initiative as a historic success in promoting self-deportation. (Graeme Sloan/Getty Images)

“Yes they did,” Noem responded during the hearing. “They went out to a competitive bid, and career officials at the department chose who would do those advertising commercials.”

The Strategy Group posted to X Tuesday that it never had a contract with the department. While it did receive several hundred thousand dollars for production costs associated with the advertising campaigns, The Strategy Group never made millions.

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“The Strategy Group has never had a contract with DHS,” the post said. “We had a subcontract with Safe America [Media] for limited production services. Safe America paid us $226,137.17 total for 5 film shoots, 45 produced video advertisements and 6 produced radio advertisements.

DHS SPOKESWOMAN TRICIA MCLAUGHLIN TO LEAVE TRUMP ADMIN, SOURCE CONFIRMS

Critics raised concerns about potential conflicts of interest in a high-dollar DHS advertising effort, but department representatives say McLaughlin recused herself and that subcontracting decisions were made independently. (AP Photo/Jose Luis Magana, File)

“If you’re going to try to question our integrity, bring actual evidence — we did,” the post concluded.

Because these ads were purchased using public funds, all contract totals are publicly available. 

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Lauren Bis, who took up the role of assistant secretary once McLaughlin left office, told Fox News Digital Tuesday that scrutiny from Republicans and Democrats over the advertising spending was unjustified because the campaigns resulted in “the most successful ad campaign in U.S. history.”

“Sanctuary politicians are attacking this ad campaign because it has been successful in CLOSING our borders and getting more than 2.2 million illegal aliens to LEAVE the U.S.,” Bis said. 

“The DHS domestic and international ad campaign was the most successful ad campaign in U.S. history. The results speak for themselves: 2.2 million illegal aliens self-deported, and we now have the most secure border in American history.”

KRISTI NOEM TO FACE SENATE GRILLING OVER MINNEAPOLIS SHOOTINGS AS DHS SHUTDOWN HITS WEEK 3

The Trump administration reaffirmed that all illegal immigrants are eligible for deportations as they focus on arresting violent criminals first.  (Raquel Natalicchio/Houston Chronicle via Getty Images)

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Bis also compared the cost of arresting and deporting an illegal migrant to that of the minimal cost of an illegal migrant self-deporting. The department says the advertising campaign played a key role in marketing self-deportation.

A spokesperson at DHS also told Fox News Digital that contractors decide who they hire, fulfilling the terms of a contract, not the department itself. 

“By law, DHS cannot and does not determine, control or weigh in on who contractors hire or use to fulfill the terms of the contract,” a DHS spokesperson told Fox. “Those decisions are made by the contractor alone. We have only become aware of these companies because of this inquiry and did not hire those companies.”

The spokesperson also noted that McLaughlin “recused herself” from interactions with subcontractors to avoid “any perceived appearance of impropriety.”

“Upon hearing who the subcontractors were for production of the ad, Ms. McLaughlin recused herself from any interaction or engagement with any subcontractors to avoid any perceived appearance of impropriety,” the spokesperson continued. “DHS Office of Public Affairs is the program officer. Ms. McLaughlin oversees the DHS Office of Public Affairs, which is simply the vehicle for this contract.”

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Department of Homeland Security Secretary Kristi Noem takes her seat as she arrives to testify during a Senate Judiciary Committee hearing Tuesday on Capitol Hill in Washington, D.C. (Jim Watson/AFP via Getty Images)

McLaughlin told Fox News Digital the criticism of her and her family by senators at the hearing is a matter of public manipulation.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

“This is yet another example of politicians intentionally trying to dupe and manipulate the public to try to manufacture division and anger,” McLaughlin told Fox News Digital. “The ad spend and contracts are a matter of public record, and the process was done by the book.

“These politicians would rather smear private citizens and American small businesses than do any basic research.”

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Fox News Digital’s Alexandra Koch contributed to this report.

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DHS defends ad blitz amid Senate scrutiny, says campaign drove 2.2M self-deportations and saved taxpayers $39B
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Senate rejects war powers measure to withdraw forces from Iran

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Senate rejects war powers measure to withdraw forces from Iran

Senate Republicans blocked a war powers resolution Wednesday designed to withdraw U.S. forces from hostilities in Iran, as the Trump administration accelerates its military campaign in a conflict that has killed hundreds, including at least six American service members.

The motion failed in a vote of 47-53.

In addition to pulling out military resources from the Middle East, the measure — introduced by Sens. Chuck Schumer (D-N.Y.), Adam Schiff (D-Calif.) and Tim Kaine (D-Va.) — would have required Congress’ explicit approval before future engagement with Iran, a power granted to the legislative branch in the Constitution.

The House, where Republicans also hold an advantage, is scheduled to weigh in on a similar measure Thursday. Even if both Democratic-led measures were to succeed, President Trump was widely expected to veto the legislation.

“We are doing very well on the war front, to put it mildly,” President Trump said at a White House event on Wednesday afternoon. The president, who has come under scrutiny for offering shifting explanations on the war’s endgame, said that if he was asked to scale the American military operation from one to 10, he would rate it a 15.

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Democrats dispute that Trump possesses the authority to wage the ongoing operation in Iran without explicit congressional approval.

Acknowledging the measure was unlikely to succeed, they framed the vote as a strategy to force lawmakers to put their support for or opposition to the war on record.

“Today every senator — every single one — will pick a side,” Schumer said. “Do you stand with the American people who are exhausted with forever wars in the Middle East, or stand with Donald Trump and Pete Hegseth as they bumble us headfirst into another war?”

Senate Majority Leader John Thune (R-S.D.) and most of his Republican colleagues have maintained that the president carried out a “pre-emptive” and “defensive” strike in Iran, giving him full authority to continue unilateral military operations.

Republicans saw the vote as the “last roadblock” stopping Trump from carrying out his mission against the Islamic Republic.

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“I think the president has the authority that he needs to conduct the activities and operations that are currently underway there. There are a lot of controversy and questions around the war powers act, but I think the president is acting in the best interest of the nation and our national security interests,” Thune said at a news conference.

Senators largely held to party loyalties, with the exception of Kentucky Republican Rand Paul, who broke ranks to support the measure, and Pennsylvania Democrat John Fetterman, who opposed it.

The vote comes as Defense Secretary Pete Hegseth said Wednesday that the war against Iran is “accelerating,” with American and Israeli forces expanding air operations into Iranian territory. He pointed to evidence released by U.S. Central Command of a submarine strike on an Iranian warship, and also lauded other strikes throughout the region as civilian casualties in Iran surpassed 1,000 on the fourth day of the conflict, according to rights groups.

“We’re going to continue to do well,” Trump said Wednesday. “We have the greatest military in the world by far and that was a tremendous threat to us for many years. Forty-seven years they’ve been killing our people and killing people all over the world, and we have great support.”

Republicans blocked a similar war powers vote in January after the president ordered U.S. special forces to capture and extradite Venezuelan President Nicolás Maduro in Caracas on drug trafficking charges.

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GOP leaders argued that the outcome of that mission equated to a quick success in the Middle East, despite an uncertain timeline from the Department of Defense.

In the House, lawmakers will vote on a separate war powers effort Thursday. That bill is led by Rep. Ro Khanna (D-Calif.) and Rep. Thomas Massie (R-Ky.), the two lawmakers who authored the Epstein Files Transparency Act.

“Instead of sending billions overseas, we need to invest in jobs, healthcare, and education here,” Khanna said on X.

In addition to that proposal, moderate Democrats in the House have introduced a separate resolution that would give the administration a 30-day window to justify continued hostilities in the Middle East before requiring a formal declaration of war or authorization from Congress.

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