California
Here's the Real Reason PG&E Rates Are Skyrocketing in California
California now holds the ignominious prize for the highest electricity rates in the nation, except Hawaii. How did we get into this predicament?
Because the California Public Utilities Commission — the five-member agency appointed by Governor Gavin Newsom that regulates the prices, service and reliability of private energy utilities — has failed to do its job.
There are other government entities that hand out cookies to energy companies without a care for who pays the bill. But the buck stops at the Public Utilities Commission to protect utility customers.
When a private utility like PG&E decides it needs to build new infrastructure — say, to protect against wildfires — it’s the commission that determines if the infrastructure is necessary, if the utility’s proposed costs for that infrastructure are fair, and if better and cheaper alternatives exist.
The commission enjoys limited scrutiny by the courts. Decisions made by other state agencies can be appealed to Superior Court. But only an appellate court can hear commission appeals, and taking that case is discretionary. This limited judicial review means that the Public Utilities Commission essentially answers to the governor alone.
As a former commission president, I know what keeping energy prices down requires: a sharp pencil to control relentless spending requests from utilities that allow them to generate more profits, adherence to legal mandates that require it to protect ratepayers and allow only “just and reasonable” costs and the backbone to just say no to the utilities’ unceasing demands that customers pay for programs that are ineffective or unnecessarily expensive.
None of this is happening, and Californians should be outraged.
Last November, the commission authorized a historic rate increase — more than $2.56 billion for PG&E’s 2023-2026 general rate case spending estimates. PG&E applied to the commission to charge its customers for the costs of running its gas and electricity businesses, including new infrastructure, system maintenance, and employee and management salaries.
That rate increase hits in stages. The commission let PG&E charge its customers immediately for the first $1.3 billion, painfully hitting in January’s bills. But that’s not the end to commission-permitted rate increases: The utility will collect $716 million more in 2024, $359 million in 2025 and $204 million in 2026.
The commission allowed these increases despite its administrative law judge’s initial decision finding that PG&E’s evidence justified a much smaller rate hike. (The commission employs administrative judges to independently vet whether or not utilities have proved that they are entitled to charge their customers for their costs.)
The administrative law judge’s decision hinged on whether PG&E’s spending was “just and reasonable” — the legal prerequisite for approving any utility cost. Instead, politically appointed commissioners overruled the judge and gave PG&E the vast bulk of what it wanted despite what the facts support.
Before the ink on PG&E’s unprecedented 2023 rate increase was dry, the utility came back, asking the commission to order its customers to pay over $4 billion more for Diablo Canyon nuclear power plant costs, power purchases from electricity generators and infrastructure upgrades for “energization” efforts.
PG&E wants $691 million of that upfront — paid now — before the Public Utilities Commission even evaluates whether those costs are just and reasonable.
Adding insult to injury, in its March 12 decision, the commission handed PG&E yet another increase of $516 million — to take effect immediately. This time the commission dispensed with pesky legal requirements for evidentiary hearings, testimony or proof of PG&E’s asserted costs. By not even attempting to evaluate the reasonableness of the utility’s demands, commissioners set a new low in disregarding the law, which allows the commission to increase rates only after it holds a hearing that includes testimony under oath and cross-examination of PG&E’s witnesses.
In its decision, the commission admitted that granting PG&E half a billion up front, based only on PG&E’s word, “departs from the general requirement to raise rates only after the costs are determined reasonable.” Despite PG&E’s admission that its original $5.7 billion expense estimate actually only totaled $2.7 billion, commissioners approved the increase anyway, only timidly admonishing that “PG&E should be more transparent at the outset to assist with decision-making.”
What should have occurred?
Formal hearings, with PG&E’s witnesses testifying under oath about the true amounts of their asserted costs. The commission should have followed the law that requires PG&E to prove that its costs are “just and reasonable” — before forcing its customers to pay more. The law requires public, rules-based fact determinations about what money is really needed to provide safe and reliable service versus what constitutes frivolous, unnecessary or profit-plumping projects.
The commission blithely maintains that it will review PG&E’s actual costs later — years from now. If unreasonable costs are found, it will order refunds of the money PG&E took from its customers.
But PG&E will almost certainly fight such refunds by scaring future commissioners into inaction, claiming that “the markets” have expected them to keep the money so it can’t be taken away.
Kowtowing to PG&E despite the evidence and the facts — or in this latest case, raising rates without any evidence or facts — shows the Public Utilities Commission’s utter indifference to the hardships these rate increases impose on California’s families and businesses.
Now, a new commission scheme is set to create a “fixed charge” on top of current pay-as-you-use prices, which would be marginally reduced, only for residential customers, under the plan.
On March 27, an administrative law judge published a proposed decision that, if approved in May, will impose a new fixed $24.18 monthly charge on residential customers not eligible for low-income discounts. The commission touts this proposal as a win because it set the charge significantly lower than the $70-$90 the utilities initially proposed. But the new charge still exceeds twice the national average for similar charges.
Fixed fees are the start, not the end, of more rate increases because the commission doesn’t prohibit the fixed charge from increasing whenever PG&E wants. The plan lacks safeguards against utility double-dipping, so it will be hard to tell whether the costs embedded in this new fixed charge are duplicated in other cost-recovery requests. Even PG&E’s low-income customers are not protected — they already pay more than the average customer in the Sacramento Municipal Utility District.
The Public Utilities Commission’s rubberstamping of unproven, unwarranted, unjust electricity costs must stop. It is up to the state Legislature to inject sanity into the regulatory system and protect California families and businesses from ruinous, undeserved rate increases.
Thankfully, legislators have introduced AB1999 to stop this increase and cap any fixed charge at $5 for low-income customers and $10 for other customers. AB2054 would stop the revolving door of former commissioners moving to jobs with utilities and scrutinize utility funds, and SB938 would stop ratepayers from paying for utility lobbying and advertising, among other reforms.
Passing these bills would be important first steps to reining in California’s rogue Public Utilities Commission and halting runaway energy rates.
More robust oversight by the Legislature is needed. Without it, you can expect your energy bills to continue to skyrocket.
Loretta Lynch is a former president of the California Public Utilities Commission and an attorney in San Francisco.
California
As fireworks pop off for July 4, which are legal to use in California?
See the best High Desert fireworks through the years
Fireworks have long lit up the California High Desert, from community shows in Victorville and Apple Valley to backyard celebrations that filled the night sky. Revisit Fourth of July moments through the years.
Each year, fireworks light up the sky across the United States for the nation’s Independence Day. With 2026 marking the nation’s 250th birthday, fireworks shows may be a bigger draw.
With California being so fire-prone, the state has strict fireworks laws, but does that mean that people won’t enjoy fireworks without risking jail time on July 4?
Are fireworks illegal in California?
The California Department of Forestry and Fire Protection, or CalFire, is the agency in charge of managing fireworks and classifying which ones are safe to light.
The California Fireworks Law was passed in 1938 and designated the Office of the State Fire Marshal as the only fireworks classification authority in the state, according to CalFire.
The fire marshal’s office classifies fireworks through lab analysis and field testing. It also requires that all parties dealing in fireworks, such as pyrotechnic operators, manufacturers, and retailers, have licensing.
Along with the aforementioned law, the State’s Explosive Law authorizes the fire marshal to “adopt regulations for the safe use, handling, storage and transportation of explosives,” CalFire says.
“Safe and Sane” fireworks are less likely to cause injury and generally mean that the fireworks do not explode or fly, according to the City of Fontana.
There are almost 300 communities in the state that allow “Safe and Sane” fireworks.
It is illegal in the state to sell, transport, or use fireworks that don’t carry the “Safe and Sane” seal or use any in a nonpermitted community. If convicted, you can face a fine up to $50,000, a year in jail or both, according to CalFire.
All other fireworks are considered illegal in the state and are prohibited from being operated by unauthorized parties in most jurisdictions.
Some illegal fireworks include:
- Wire Core Sparklers
- Sky rockets
- Bottle rockets
- Roman candles
- Aerial shells
- Firecrackers
- Other fireworks that explode, go into the air, or move on the ground in an “uncontrollable manner.”
How to safely use fireworks
CalFire has put out a list of safety tips to avoid injury when handling fireworks.
CalFire recommends:
- Use only State Fire Marshal-approved fireworks
- Verify local ordinances before purchasing or using fireworks.
- Always read the directions on labels.
- Children should always have an adult present.
- Only use fireworks outdoors.
- Avoid using fireworks near dry grass or other flammable materials.
- Only light one firework at a time.
- Have a bucket of water and a hose nearby in case of fire.
- During a drought, it is recommended that you use a bucket of reused water to submerge your firework after use to ensure it’s completely extinguished.
- Never place any part of your body directly over a fireworks device when lighting the fuse.
- Back up several feet immediately after lighting a firework.
- Never point or throw fireworks at another person.
- Never attempt to relight or fix fireworks.
- Never experiment with fireworks.
- Do not wear loose-fitting clothing while lighting fireworks.
- Never carry fireworks in your pockets.
Ernesto Centeno Araujo covers breaking news for the Ventura County Star. He can be reached at ecentenoaraujo@vcstar.com, 805-437-0224 or @ecentenoaraujo on Instagram and X.
California
California bill to block registered sex offenders from local office rejected by Senate committee
FRESNO, Calif. (KFSN) — California bill aimed at preventing registered sex offenders from holding local elected office was halted Tuesday after a Senate committee declined to advance the measure without changes opposed by its author.
Assembly Bill 2753, introduced by Assemblywoman Esmeralda Soria in February, would have prohibited anyone who is or has been required to register as a sex offender from running for local elective office.
“This issue is critical. We have heard loud and clear from the community that we must do something,” Soria said.
The proposal came to a stop in the Senate Elections Committee, where lawmakers argued the bill’s restrictions were too broad.
California’s sex offender registration system is divided into three tiers. Tier 1 offenders are generally required to register for 10 years, Tier 2 offenders for 20 years and Tier 3 offenders for life.
According to Soria, committee members proposed limiting the bill to Tier 3 offenders. She rejected those amendments, arguing that the legislation should apply more broadly.
“For this not to be the law today, where we’re banning people that have committed some of the most horrific crimes against children, against other people, you know, and we have survivors out there, I think it’s a disservice,” Soria said.
The bill had attracted significant support before reaching the Senate. It was backed by the Fresno City Council and passed the Assembly floor in April.
Fresno City Council President Nelson Esparza traveled to Sacramento to testify in favor of the measure and said he was disappointed by the outcome.
“I call it really a gut punch for our community, and what we had experienced here, and sort of the upheaval… I don’t think we want that to happen again here at Fresno,” Esparza said.
Esparza referenced controversy earlier this year involving registered sex offender Rene Campos, who sought a seat on the Fresno City Council but ultimately did not qualify for the ballot.
Opponents of the bill argued that candidacies should be decided by voters rather than restricted by law.
“It should be a decision made by the voters, so a person should not be barred from running for office and let the voters make the decision that makes the most sense for them,” said civil rights attorney Janice Bellucci.
With the committee declining to move the bill forward under its current language, efforts to enact the proposed restrictions have stalled for now.
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California
Billionaire tax measure heads to California’s November ballot, with Kern County watching
BAKERSFIELD, Calif. (KBAK/KBFX) California voters will face a high-profile “billionaire tax” measure on the November ballot, a proposal supporters say would raise new revenue, but critics warn could push some of the state’s wealthiest residents to leave.
If passed, the measure would impose a one-time 5% tax on California billionaires living in the state as of Jan. 1, 2026.
Tal Eslick, owner of Vista Consulting, said, “I think there is this effort, especially on the part of progressive state leaders, to somehow, you know, go after billionaires or maybe even the trillionaires that may exist in the future.”
Billionaire tax measure heads to California’s November ballot, with Kern County watching (AP Photo/Jeff Chiu, File)
Political analysts say a proposal like this could encourage some of California’s wealthiest residents to relocate, potentially taking investment and business activity with them.
Eslick said, “And for that matter, they can come back occasionally to visit and do a little bit of business, but live in a state that is a little more accommodating for them from a tax standpoint.”
Questions have also been raised about what the impact could be for Kern County if billionaires leave the state.
Sherod Waite, CEO of Moneywise Guys, said, “It’s questionable how much revenue would actually be generated from the tax and how much revenue would be lost from those people exiting the state. It’s questionable. It’s a gamble.”
Waite said billionaires leaving could reduce state revenue that could be used in Kern County.
Billionaire tax measure heads to California’s November ballot, with Kern County watching (AP Photo/Jeff Chiu, File)
“Think of all the support services that the state offers to the entire state, including us here in Kern County, that are paid for by tax dollars,” he said.
Gov. Gavin Newsom has been outspokenly against a state wealth tax and is instead proposing a national tax policy that would tax anyone with a net worth of $100 million.
Newsom said, “It’s time for a national billionaire’s tax and a new social contract. Just think of this, just ten percent of people own 2/3’s of the nation’s wealth.”
Eslick said Newsom’s position can be difficult to square.
“It’s a naturally confusing sort of position to be opposed to the tax in California but be supportive of it at a national level. But I think that’s him walking a treacherous political road,” he said.
Billionaire tax measure heads to California’s November ballot, with Kern County watching (AP Photo/Jae C. Hong, File)
In a statement regarding the measure, Assemblyman Stan Ellis said in part, “This would hurt Kern’s energy, Agriculture, manufacturing, and working families through lost investment, fewer jobs and unstable state funding.”
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