California
California regulator proposes cutting power bills 5% after doubling rates since 2014 – Washington Examiner
(The Center Square) – Following an executive order from California Gov. Gavin Newsom to explore how to reduce energy prices that have doubled since 2014, California’s energy regulator issued proposals it said would cut rates by 4% to 5% in the first year but grow significantly over time.
These proposals include reforming the program that will pay homeowners $8.5 billion this year for solar panel energy, phasing out funding of non-energy related social programs such as “food deserts” assistance from energy budgets, and reducing capital expenditures.
Under current regulations, utilities’ profits are capped relative to the value of their capital investments, which the report says incentivizes utilities to spend and borrow as much money as possible to increase their profit allowance – at ratepayers’ and taxpayers’ expense.
According to the California Public Utilities Commission’s latest electricity rate report, rates for the state’s three largest utilities have increased by an average of 96% since January 2014 and 42% since January 2021.
“California’s electricity rates have surged beyond inflation, straining households and businesses hindering decarbonization efforts,” wrote the CPUC. “Wildfire mitigation measures, costly infrastructure investments, and rooftop solar subsidies all contribute to rising costs. Without changes in how utilities recover expenses, rates will continue to climb.”
The governor’s order put significant constraints on the CPUC’s scope of recommendations, requiring the recommendations “reduce costs to electric ratepayers without compromising public health and safety, electric grid reliability, or the achievement of the State’s 2045 clean electricity goal and the State’s 2045 economywide carbon neutrality goal.”
Within these constraints, the CPUC made four recommendations on how to reduce rates by 4-5% within the first year, with future rate reductions growing over time.
First, CPUC recommended minimizing “expensive construction projects,” explaining how current regulations encourage utilities to choose expensive options that allow them to raise their CPUC-regulated profit allowance.
“There is a profit motive for utilities to pursue capital-intensive projects, as they earn a ‘return on equity’ on these investments which increases overall costs for ratepayers,” wrote the CPUC, which must approve utility projects. “Without proper oversight, this profit motive can lead to prioritizing expensive projects over more efficient alternatives.”
In addition to recommending choosing lower cost options, the CPUC also suggested securitizing some higher cost projects, which would require bonds to be issued, and paid back by ratepayers — which would not come with ROE provisions. CPUC estimates this change on just undergrounding of power lines could save customers $41 million per year in 2025, and $310 million per year by 2026.
CPUC suggests significantly reforming the rooftop solar subsidy plan that will issue $8.5 billion per year by the end of 2024 — up from $3.5 billion per year in 2021 — to energy customers with solar panels installed.
Under the existing plan, solar-equipped customers “receive payments at retail electricity rates for their exported energy, often exceeding its actual market value.”
Utilities often must pay other operators to take excess solar energy, on top of paying solar customers the retail rate for the negative-value solar energy, leaving non-solar customers with the bill.
“These growing subsidies, paid for by non-rooftop solar customers, contribute to higher electricity rates and result in a higher cost burden to non-[solar] customers,” wrote the CPUC. “Additionally, rooftop solar customers do not contribute their fair share of fixed grid costs, such as maintaining power lines and ensuring grid reliability.”
An earlier CPUC report found 15% of non-solar customers’ energy bills went towards payments to solar customers.
The CPUC recommends reducing the solar compensation rates and transitioning buyers of property with high-reimbursement agreements to the current lower rate.
CPUC further recommended that utilities “phase out non-cost-effective programs from electricity rates,” that it says often have “very little to do with reducing energy consumption,” which means “funding them through customers’ energy bills effectively acts as a regressive tax.”
The CPUC said “programs addressing food deserts or supporting high school and community college courses, while socially beneficial, are better suited for taxpayer funding than ratepayer funding.”
It also pointed to a “state-administered grant program for school infrastructure improvements,” and energy efficiency programs, finding, “Despite increasing investment, many of the programs funded today are not cost-effective and do not primarily focus on cutting energy use.”
The recommendations align with concerns raised by some state lawmakers — especially Republicans, about inequitable energy costs.
“It’s no secret that the benefits of wind and solar energy are not equally enjoyed in some communities,” said California Senate Utility, Energy and Communications Vice Chair Brian Dahle, R-Bieber, in an earlier interview with The Center Square on solar payments. “It’s time for energy resources, renewable or not, to stand independently without offsetting costs by adding more fees and relying heavily on taxpayers’ support.”
California
Immigrant truck drivers in limbo as feds deny California effort to reissue licenses
Thousands of immigrant drivers whose commercial driver’s licenses are set to expire next month were left bewildered and disappointed when news spread that California was planning on reissuing the licenses — only to learn federal regulators had not authorized doing so.
Amarjit Singh, a trucker and owner of a trucking company in the Bay Area, said he and other drivers were hopeful when word of California’s intentions reached them.
“We were happy [the California Department of Motor Vehicles] was going to reissue them,” he said. “But now, things aren’t so clear and it feels like we’re in the dark.”
Singh said he doesn’t know whether he should renew his insurance and permits that allow him to operate in different states.
“I don’t know if I’m going to have to look for another job,” he said. “I’m stuck.”
Singh is one of 17,000 drivers who were given 60-day cancellation notices on Nov. 6 following a federal audit of California’s non-domiciled commercial driver’s license program, which became a political flashpoint after an undocumented truck driver was accused of making an illegal U-turn and caused a crash in Florida that killed three people.
The nationwide program allows immigrants authorized to work in the country to obtain commercial driver’s licenses. But officials said the federal audit found that the California Department of Motor Vehicles had issued thousands of licenses with expiration dates that extended beyond the work permits, prompting federal officials to halt the program until the state was in compliance.
This week, the San Francisco Chronicle obtained a letter dated Dec. 10 from DMV Director Steve Gordon to the U.S Department of Transportation stating that the state agency had met federal guidelines and would begin reissuing the licenses.
In a statement to The Times, DMV officials confirmed that they had notified regulators and were planning to issue the licenses on Wednesday, but federal authorities told them Tuesday that they could not proceed.
DMV officials said they met with the Federal Motor Carrier Safety Administration, which oversees issuance of non-domiciled commercial driver’s licenses, to seek clarification about what issues remain unresolved.
A spokesperson for the Department of Transportation, which oversees the FMCSA, would only say that it was continuing to work with the state to ensure compliance.
The DMV is hopeful the federal government will allow California to move ahead, said agency spokesperson Eva Spiegel.
“Commercial drivers are an important part of our economy — our supply chains don’t move and our communities don’t stay connected without them,” Spiegel said. “DMV stands ready to resume issuing commercial driver’s licenses, including corrected licenses to eligible drivers. Given we are in compliance with federal regulations and state law, this delay by the federal government not only hurts our trucking industry, but it also leaves eligible drivers in the cold without any resolution during this holiday season.”
Bhupinder Kaur — director of operations at UNITED SIKHS, a national human and civil rights organization — said the looming cancellations will disproportionately impact Sikh, Punjabi, Latino and other immigrant drivers who are essential to California’s freight economy.
“I’ve spoken to truckers who have delayed weddings. I’ve spoken to truckers who have closed their trucking companies. I’ve spoken to truckers who are in this weird limbo of not knowing how to support their families,” Kaur said. “I myself come from a trucker family. We’re all facing the effects of this.”
Despite hitting a speed bump this week, Kaur said the Sikh trucking community remains hopeful.
“The Sikh sentiment is always to remain optimistic,” she said. “We’re not going to accept it — we’re just gonna continue to fight.”
California
Two Republicans lead race to be next California governor—New poll
Two Republican candidates are leading the latest poll in California’s gubernatorial race amid concerns that Democrats could be locked out of the general election in the solidly blue state.
Newsweek reached out to the California Democratic and Republican parties for comment via email.
Why It Matters
California is a solidly Democratic state that rarely elects Republicans to statewide office. However, Democrats are facing a potential challenge in next year’s gubernatorial race. The Golden State uses a unique “jungle primary” system where all candidates, regardless of their party, appear on the same ballot and the two candidates who receive the most votes advance to the general election. This means there is a possible, even if unlikely, scenario where two Republicans could advance to the general election and lock Democrats out of the race.
A string of recent polls suggests that could be a possibility in the race next year to replace retiring Governor Gavin Newsom, a Democrat, who cannot run for a third term due to term limits.
What To Know
California’s gubernatorial race has drawn the interest of several well-known Democrats in the state including Representative Eric Swalwell, former Representative Katie Porter, former Secretary of Health and Human Services (HHS) Xavier Becerra, businessman Tom Steyer, former Los Angeles Mayor Antonio Villaraigosa, Superintendent of Public Instruction Tony Thurmond and former Controller Betty Yee.
By contrast, two well-known Republicans—Riverside County Sheriff Chad Bianco and commentator Steve Hilton—are in the race.
The math problem for Democrats would be if the high number of Democrats split the vote in a way that allows Bianco and Hilton to narrowly advance to the general election. Early polls show that as a possibility, though there is still time for Democratic voters to coalesce around specific candidates before June’s primary.
On Thursday, pollster Civic Lens Research released a survey showing Bianco and Hilton advancing to the general election. Hilton led with just under 18 percent of the vote, while Bianco followed with about 14 percent.
Swalwell placed third with about 12 percent support, while Porter and Steyer followed with 9 and 7 percent support, respectively. Still, many voters are still unsure of who they are going to support—and could be decisive in the race. Thirty-one percent said they were undecided in the poll.
The poll surveyed 400 likely California primary voters via a web questionnaire sent by text message between December 14 and 16.
Other polls have also showed a Democratic lockout as a possibility. An Emerson College poll, which surveyed 1,000 likely voters from December 1-2, showed Bianco leading with 13 percent, while Hilton and Swalwell were tied at 12 percent. An FM3 poll showed Hilton lead with 18 percent, followed by Bianco and Swalwell at 17 percent. It surveyed 821 likely voters from November 30 to December 7 and had a margin of error of plus or minus four percentage points.
Zev Yaroslavsky, a former member of the Los Angeles County Board of Supervisors and director of the Los Angeles Initiative at the University of California, Los Angeles, told Newsweek polls are “largely reflecting name identification and party identification.”
“Voters are not focused on the June primary yet,” he said. “With only two Republicans in the mix along with half a dozen or more well-known Democrats, it is not surprising that most of the candidates are bunched up.”
Democratic and undecided voters are likely to “consolidate behind one or two prominent candidates” by the spring, Yaroslavsky said, noting that other candidates will either drop out or “just be relegated to electoral irrelevancy.”
“The top Democrat will assuredly receive far more than 13% in June. Republicans have a ceiling of what they can hope to get in California, and when Democratic and independent voters coalesce around on or two candidates, at least one of the leading Democratic candidates will come in first or second and advance to the general election. At that point, it’s the Democrats’ to lose,” he said.
What People Are Saying
Corrin Rankin, chairwoman of the California Republican Party, told Newsweek in November: “Poll after poll shows Californians are tired of the decades of failure and corruption by Democrats, and they are turning to Republicans for real solutions and leadership on issues like affordability, public safety, and homelessness.”
Rusty Hicks, chair of the California Democratic Party, told Newsweek in November: “We look forward to electing another Democrat as California’s next Governor in 2026.”
What Happens Next?
The primary is set for June 2, 2026, so candidates will spend the first half of next year making their case to voters to convince them they are the best option to lead the nation’s most populous state.
California
California orders Tahoe Truckee schools to leave Nevada sports over transgender athlete dispute
The California Department of Education is requiring the Tahoe Truckee Unified School District to follow state law in another clash over transgender athletes in youth sports in the state.
Currently, student-athletes in Tahoe Truckee Unified play sports in Nevada because of how close they are. But Nevada now bans transgender athletes in girls’ sports, which is against California state law.
So after decades of playing in Nevada, California’s Department of Education is requiring the Tahoe Truckee Unified School District to compete in California to comply with state laws that allow student athletes to compete based on their gender identity.
David Mack is the co-founder of Tahoe Pride and describes the new youth sports divide in the Tahoe region.
“So no one’s happy, it’s really sad, it’s quite tragic in that way,” Mack said. “People feel really upset that the school moved so fast on this. They feel blindsided, they feel not listened to, and then other people, like the trans kids, are getting steamrolled over like they’re not recognized in this argument.”
Nevada state lawmakers passed a law in April requiring a mandatory physical signed by a doctor to deem the athlete male or female based on their birth sex.
“This is a politically manufactured issue to try to divide people,” Mack said.
The Tahoe Truckee Unified School District is responding to the California Department of Education with a solution that the district legally join the California Interscholastic Federation in 2026, but continue to play in the Nevada Interscholastic Activities Association through 2028.
When asked if transgender athletes would be able to compete while operating in the NIAA, the district said it’s “still in the early stages of this transition, and many details are still being developed.”
In an October letter addressed to the California Department of Education, the school district’s attorney, Matthew Juhl-Darlington, said the Tahoe Truckee Unified is “not aware of any transgender youth who have expressed interest in participating in its 2025-2026 athletic programs.”
“While the NIAA recently updated its polices to define ‘male’ and ‘female’ based on sex assigned at birth and not as reflected in an individual’s gender identity, as required under California law, the District is interpreting and implementing this policy in a manner consistent with California’s legal requirements,” Juhl-Darlington said in the letter.
California Republican Rep. Kevin Kiley is opposed to the state order, arguing the weather conditions in Tahoe need to be considered.
“So in order to compete in a California league, you have to deal with this snowy weather and the travel dangers and so forth,” Kiley said.
The school board was expected to explain its solution to both join California’s CIF while playing in the NIAA through 2028 to parents and students Wednesday night at a board meeting.
So far, the California Department of Education has not said if it will accept this as a solution.
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