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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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Commentary: Why a loss for Hilton would be a win for Trump

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Commentary: Why a loss for Hilton would be a win for Trump

If the last few weeks have shown us anything, it’s that the gubernatorial primary is an unexpectedly close race among a trio unlikely leaders: MAGA Republican Steve Hilton, and Democrats Xavier Becerra and Tom Steyer.

Though Trump endorsed Hilton, a former Fox News host, a Hilton loss may be just what Trump wants — more fuel to fire up his MAGA base with false claims of rigged elections.

“Whether Hilton finishes first, second, or third, Trump will declare with zero evidence that there is voter fraud.,” Matt Barreto told me. He’s a professor of political science at UCLA and a founder of its Voting Rights Project, meant to promote free and fair elections.

And since California will probably take days or weeks to count all the ballots, a tight race will be fertile ground for those fraudulent fraud claims. President Trump has already started, clearly planning to use our primary to further his push to assert federal control of state-run elections.

“You have a really rigged vote in California,” Trump said last week, when asked about Hilton and Los Angeles mayoral candidate Spencer Pratt, another unlikely right-wing contender. “California’s one of the most dishonest states for voting.”

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California is not, of course, dishonest in its voting, and Trump has whined about elections for so long that this rhetoric might elicit little more than a shrug from most. But California elections matter at this pivotal moment only months before the midterms. Fraud claims here will further erode trust in our electoral system and could provide Trump with ammunition for interference across the country.

Voter fraud claims may also test a new California law meant to protect real election integrity and trust — a law (Senate Bill 73, signed by Gov. Gavin Newsom last week) that has received little notice but one that could provide a model of protection for the rest of the U.S. It stops law enforcement agents, including federal agents, from “providing unauthorized access, disruption, modification, or seizure of voter rolls, voter lists, or certified voting technology,” without a court order.

Call it the Sheriff Chad Bianco Act.

Bianco, another MAGA gubernatorial hopeful, seized hundreds of thousands of ballots from a recent election, claiming he was investigating the kind of wrongdoing Trump constantly alleges without proof. State Sen. Tom Umberg (D-Santa Ana), a former federal prosecutor, said the warrant Bianco obtained from a friendly judge was “woefully deficient.”

So Umberg helped pass the measure to “protect the integrity of California elections” from “rogue law enforcement officials,” he said.

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And he’s not just talking about Bianco.

“I am worried about interference in the election by federal authorities,” Umberg said. “I believe Donald Trump when he says, ‘I’m going to interfere in the election.’”

Umberg is so concerned that he has two other bills in the works he hopes will be law by November. One would stop Immigration and Customs Enforcement agents from being present at polling places. The other would make it illegal for anyone running for a third term as president to appear on the California ballot.

The buildup of fraud claims around California elections and the pushback from legislators like Umberg is a background battle that hasn’t received much attention, but one that is real and consequential.

Trump, through demands for voter rolls by the U.S. Department of Justice, the promotion of the SAVE Act, vague threats of ICE or other federal agents at polls, and the placement of election deniers in key federal rolls has gutted safeguards for voting on the national level.

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States have been slow to meet the threat, largely waiting for November to see how it plays out. California, to it’s credit, isn’t so complacent.

The strange circumstances of this particular California election may be a test for both sides. Barreto, the UCLA voting expert, said he thinks “Hilton has the highest probability of finishing first on Tuesday with Becerra close by in second, and Steyer in third.”

But that could — and probably would — change as more ballots are counted.

By Thursday, Barreto said, it’s probable (far from certain) that Becerra is in the lead and Hilton is second.

“There will definitely be millions more ballots counted on Wednesday and Thursday and they will be disproportionately Democratic and contribute to both Becerra and Steyer numbers,” he said.

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Maybe pushing Steyer into second? Again, a long shot. But possible.

Democrats have been holding on to their ballots until the last minute this year, with a huge number waiting until just the last few days to vote. It’s possible (though unlikely) that by sheer numbers, Democratic voters will propel both Steyer and Becerra toward November.

We do know that Republicans, despite their smaller numbers, have been voting, and trusting the postal service with their ballots this time around at a fairly high rate. That’s despite Trump’s claims that mail-in voting is inherently fraudulent.

So at the same time that we are expecting a big influx of Democratic ballots in coming days, Republicans may be closer to their voting peak, meaning Hilton’s numbers could top out on election night.

If Hilton doesn’t make the top three, after having been in the lead during in-person voting, MAGA will most certainly lose its collective mind.

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And Trump will have something just as good as a Republican governor in the Golden State — “proof” we cheated.

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Jared Kushner’s overseas luxury resort project faces anti-corruption investigation amid violent protests

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Jared Kushner’s overseas luxury resort project faces anti-corruption investigation amid violent protests

NEWYou can now listen to Fox News articles!

Albanian anti-corruption prosecutors are investigating changes to the protected status of a coastal wetland where a luxury resort project linked to Jared Kushner, the son-in-law of U.S. President Donald Trump, has drawn environmental opposition and protests, according to Politico.

SPAK, Albania’s special anti-corruption prosecution office, has opened a probe into changes made to the status of the Vjosa-Narta protected landscape in Zvërnec, Politico reported. The coastal wetland area is home to flamingos, Mediterranean monk seals, and sea turtle nesting sites, Politico reported.

IVANKA TRUMP BREAKS DOWN IN EMOTIONAL INTERVIEW TALKING ABOUT HER MOTHER IVANA’S DEATH, OTHER CHALLENGES

Jared Kushner and Steve Witkoff participate in a charter announcement for President Donald Trump’s Board of Peace initiative in Davos, Switzerland, on Jan. 22, 2026. (Denis Balibouse/Reuters)

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In 2024, Kushner publicly discussed plans for his firm, Affinity Partners, to develop luxury tourism projects in Albania, including in the Zvërnec area. Earlier this year, he visited the area with his wife, Ivanka Trump.

Albanian Prime Minister Edi Rama recently confirmed to Politico that talks were ongoing between the government and Kushner over the deal, which is expected to include roughly 10,000 hotel rooms and villas.

EUROPEAN CAPITAL ROCKED BY VIOLENT PROTESTS AS GOVERNMENT CORRUPTION PROBE FUELS UNREST

Albanian Prime Minister Edi Rama speaks during a press conference following the EU-Albania Intergovernmental Conference in Brussels, Belgium, on May 26, 2026. (Daniel Gnap/NurPhoto)

“I want to make Albania a country that is a destination to be envied in the region, and this project is part of this effort,” Rama said Monday.

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Fox News Digital has reached out to Affinity Partners and SPAK for comment.

Protests by Albanian citizens and nonprofit groups began in May when large, barbed-wire-topped fences were erected at the proposed site, preventing locals and tourists from accessing the beach. On Sunday, protesters assembled outside government offices to demand an end to the project as well as Rama’s resignation.

Jared Kushner speaks during the inaugural meeting of the Board of Peace at the Donald J. Trump Institute of Peace in Washington, D.C., on Feb. 19, 2026. Kushner is facing pushback in Albania over a luxury development project. (Chip Somodevilla/Getty Images)

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Following Sunday’s protests, footage emerged showing private security guards appearing to assault and drag a protester along a cliff. Some guards allegedly threatened other demonstrators who were attempting to remove fences and halt construction.

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The licenses of two private security companies were revoked following the incident. Meanwhile, around 15 protesters have been charged, and the local police chief has been stripped of his duties.

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NBC News will put ‘Kornacki Cam’ on the L.A. mayoral, California gubernatorial races

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NBC News will put ‘Kornacki Cam’ on the L.A. mayoral, California gubernatorial races

After the polls close in California on Tuesday, NBC News chief data analyst Steve Kornacki will just be getting started.

Since December, the khaki-clad vote-counting guru has been going live and uninterrupted on streaming platforms to provide results and analysis of every special election and even some state Senate contests.

The stream — called the Kornacki Cam — provides unadulterated number crunching without any pundits weighing in. Rather than getting updates that last a few minutes, Kornacki provides continuous real-time results until the last available total is counted.

“This all happens in full view,” Kornacki said Monday in a phone interview. “The audience gets to see the whole thing. They get to see the buildup, the anticipation, the payoff.”

In the 10 Kornacki Cam sessions streamed by NBC News so far, 19 million viewers have sampled them across all platforms. The coverage — consisting of Kornacki, his Big Board, his producer and a Stedicam operator — is available on YouTube, NBCNews.com, the NBC News app and the division’s social media accounts on Instagram, Facebook and TikTok.

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The Kornacki Cam will focus on the primaries for Los Angeles mayor, California and several congressional districts, shortly after the state’s polls close at 8 p.m. Pacific. NBC News has its own decision desk, which the network said has called the results of 70% of the 2026 elections ahead of the Associated Press.

In a Monday chat with The Times, here are the trends Kornacki says he’ll be looking for on the night.

Polling in mayoral races is typically pretty unreliable. What do you make of the contest based on what you’ve seen?

You don’t always have super-competitive mayoral elections and they’re not all created equal. It’s not quite like a presidential election so you just don’t have a wealth of data to draw on for expectations either.

I’ve seen the polling you’ve seen. It suggests that of the three candidates (Mayor Karen Bass, reality TV star Spencer Pratt and City Council member Nithya Raman), Bass is in the best position to get into the runoff. It also suggests that Spencer Pratt has had the most positive movement in the last month or so of the campaign. But we go in knowing there will be volatility and I’m open to any and all possibilities.

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Spencer Pratt is an unusual candidate who has been able to take up a lot of oxygen in the race. Is there a hidden vote for him that people might not be eager to admit to pollsters?

You can look at the city and know where to look for whether Pratt is having a big night. The San Fernando Valley is gonna be more than a third of the vote, probably close to 40%. If he gets in the general election, he wants to be winning there by a big margin. 
If it’s not happening there for Pratt, I don’t think it’s happening anywhere else. Karen Bass is going to rely on central and South L.A., with probably a third of the vote coming out of those two places. Those should be her bulwarks. The Westside, I think could be more of a toss-up. There’s a fair chunk of the vote there.

We don’t do a ton of mayoral races around the country. So we’re still trying to figure out exactly how detailed we’re going to be able to zoom in, at the neighborhood level and the precinct level.

Turnouts usually are low for Los Angeles mayoral races. Will this year be different?

This mayoral race has received a lot more national attention than 2022. 
So my thought is that the turnout would be higher, just based on that. But this is something that is resonating nationally because Pratt has that celebrity factor. The number was 646,000 (total votes) for 2022. So that’s something we’ll be following — are we trending over or under that?

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And what will be the best indicators for the gubernatorial race?

The place that I kind of got circled here is Orange County. In the last two sort of major statewide elections, it was the first to report out (its) vote. 
At 8:06 p.m local time in California, in 2024, Orange County reported out half of its vote, right? So you’re getting, you know, you’re getting hundreds of thousands of votes, potentially, from this enormous county within, potentially within 10 minutes of polls closing. 
There were a couple others — the Central Valley, and we got a good chunk of Merced and Fresno quickly.

So how long are we going to have to wait for a result on Tuesday night?

One of the other things that just surrounds everything in California, whether it’s the mayor’s race, or governor’s race, or anything else, is nothing is definitive in the first hour or so after the polls close. We’re probably realistically looking at a days or even weeks-long process of getting all the vote counted.

I know it drives many people nuts. Without editorializing on that, it’s just a fact that they can get out of about two-thirds of their vote on election night, and if the races aren’t clear and definitive, then you’re generally in for a pretty long haul.

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We do know in California that they’re not going (to count) nonstop until they get a result. They’re going to then start doing updates as they process and count the remaining vote by mail, which is usually a considerable pile in a lot of these places. The vote by mail in California can continue coming in for seven days after the election.

So do you think your coverage reflects a shift in what the consumer wants? We already know how fragmented the audience is. Are there now enough political junkies who want the pure uncut stuff?

I’ve been doing this about 20 years, and when I would tell people that I reported on politics for a living, they either moved away from me or changed the subject. And now, you know, I found the last, you know, 10 years or something, has just totally changed. People come up to me, even if they don’t know I work in politics, and they want to talk politics. Everybody seems into it whatever side they’re on.

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