Business
Former Edison executive Calderon, now a lawmaker, seeks to cut rooftop solar credits
Nearly 2 million California rooftop solar owners could lose the energy credits that help them cover what they spent to install the expensive climate-friendly systems under a proposed state bill.
The bill’s author, Assemblymember Lisa Calderon (D-Whittier), is a former executive at Southern California Edison and its parent company, Edison International. She says the credits that rooftop owners receive when they send unused electricity to the grid is raising the bills of customers who don’t own the panels.
Her bill, AB 942, would limit the current program’s benefits to 10 years — half the 20 year-period the state had told the rooftop owners they would receive. The bill would also cancel the solar contracts if the home was sold.
Southern California Edison and the state’s two other big for-profit utilities have long tried to reduce the energy credits that incentivized Californians to invest in the solar panels. The rooftop solar systems have cut into the utilities’ sales of electricity.
The legislation, which applies to people who bought the systems before April 15, 2023, has outraged some Californians who invested tens of thousands to install the solar panels.
“We’re just trying to reduce our carbon footprint and you’re penalizing me for that?” said David Rynerson, a Huntington Beach resident who spent $20,000 to install the panels. “That’s just absurd.”
Until she was elected in 2020, Calderon spent 25 years at Southern California Edison and Edison International. Her last position was as a government affairs executive at Edison International, where she managed the utility’s political action committee.
Calderon declined to be interviewed. In a statement, she said that she wasn’t acting on behalf of the utility companies.
“I introduced this bill with one goal in mind: to help lower the cost of energy for Californians,” she said.
Calderon said if her bill was enacted it would reduce electric costs for customers who do not own the panels beginning in 2026.
According to OpenSecrets.org, which tracks political spending, Southern California Edison and the other two big investor-owned utilities are among Calderon’s most generous corporate donors.
Last year, the the company gave Calerdon’s campaign $11,000. Sempra, the parent company of San Diego Gas & Electric, also contributed $11,000, while Pacific Gas & Electric provided $8,000.
Southern California Edison spokesperson Kathleen Dunleavy said that the company supports rooftop solar but it also supports efforts to reduce the amount of costs that have been shifted to customers who don’t own the panels.
She said the company’s political contributions to elected officials “are based on their shared interest in how best to safely serve SCE customers reliable and affordable energy.”
In her statement to The Times, Calderon said that “political contributions have no bearing on any policy decisions I make.”
Calderon is a member of a political dynasty that has held power in the blue-collar neighborhoods east of Los Angeles for four decades.
She is married to Charles Calderon, a former state Assembly speaker and former state Senate majority leader. She was elected to the Assembly seat that had been held by her stepson Ian Calderon.
Under California’s rooftop solar program, owners get a credit on their electric bills for the solar energy they produce but don’t use. The credit is based on the current retail electric rates. The value of the credits has increased rapidly as the state’s Public Utilities Commission approved rate increases requested by the companies.
In December 2022, the big utility companies successfully pressed the commission to slash financial incentives that rooftop solar owners could receive by about 75%, starting with those people purchasing the systems on April 15, 2023.
The commission left in place the program for owners who purchased the panels by that date. The agency says the value of the credits given to those owners is now a leading cause of the state’s rising electric bills — a claim that has been disputed by the rooftop solar industry and dozens of environmental groups.
In a February report to Gov. Gavin Newsom, the commission suggested reducing the number of years that rooftop solar owners can receive credits at the retail electric rate — similar to what Calderon’s bill would do — as a remedy for escalating power costs. California now has the country’s second highest electric rates.
The commission says the rooftop customers are not contributing their fair share of the costs to maintain the electrical grid, so the expense is shifted to those who don’t own the panels.
Dozens of environmental groups sent a letter this month to the chair of the Assembly Utilities & Energy Committee opposing Calderon’s bill and pointing out that the state has long said the solar contracts would last for 20 years, which is the expected useful life of the panels.
“The CPUC’s new proposal, to break energy contracts mid-stream, would be patently unfair,” the groups wrote. “It would punish the very people who California encouraged to invest in solar energy. And it would gut consumer confidence and trust in government.”
The groups pointed out that when Californians bought the systems, they signed a state-mandated legal agreement with their utility that details in the terms that the customer is eligible to receive the credits for 20 years.
In California, under a policy known as decoupling, utilities don’t make more money as customers use more energy. Instead they make most of their profit by building infrastructure, including poles, wires and the rest of the grid.
In their letter, the environmental groups pointed to an analysis that economist Richard McCann performed for the rooftop solar industry that found that electric rates had risen as the utilities spent more on infrastructure.
Even though homeowners’ solar panels helped keep demand for electricity flat for 20 years, the three utilities’ spending on transmission and distribution infrastructure had risen by 300%, McCann found.
“To address rising rates, California must focus on what’s really wrong with our energy system: uncontrolled utility spending and record utility profits,” the environmental groups wrote.
A hearing on the bill is scheduled in the Assembly Utilities & Energy committee on April 30.
Cherene Birkholz of Long Beach said that she and her husband spent $22,000 on panels for their home. The couple saw the solar panels, she said, as a way to control costs so they could stay in California after they retired.
Birkholz said she believed the credits would continue for 20 years. The proposed legislation, she said, “came as a shock.”
“If I had known, I may not have made these decisions,” she said.
Dwight James of Simi Valley said that he spent $35,000 on solar panels in 2018 and another $40,000 on batteries to store the power in 2021. He said he financed the purchase with a 20-year loan and that he found it “disturbing” that the state would now back out of what it had promised.
“If you follow the money, it gives you all the answers,” James said. “My thought is that this bill is a way for the utility companies to try to hold on a little bit longer and slow the adoption of solar.”
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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