CALIFORNIA, USA — With the legislative session closing at the end of the month, news that Governor Gavin Newsom could introduce legislation to curb PG&E spending and lower rates for all electric bills has been spreading.
ABC10 can confirm there's some kind of bill being worked on at least. An energy advocacy group confirms they have been in meetings and heard briefings on possible legislation. An actual proposal could be seen by the end of this week or early next.
The California Energy Commission said they won’t comment on pending legislation, therefore also suggesting there is legislation.
Mark Toney, with The Utility Reform Network (TURN), an energy advocacy group, said he’s been in briefings about the legislation and expects to see something in writing by next week.
“PG&E is recording record profits at the time we are experiencing record bills,” Toney said.
He would not comment on the discussions, but he and other advocacy groups wrote a letter asking for energy efficiency programs not to be cut. One of his suggestions is for the California Public Utilities Commission (CPUC) to put caps in place on rate increases.
“Currently, there are no limits on how much the utilities can ask for or how many times a year. And there on no limits on how much the CPUC can grant in a rate increase,” Toney said.
TURN estimates it's led to people paying 50% more on their bills over the last three years and around around 30% more this year but that number can fluctuate by the month. PG&E says combined gas and electric bills have increased 16% this year.
Customer advocates agree utility companies like PG&E need their spending curbed, accusing utilities of pushing pricey programs that don’t work. But former CPUC President Loretta Lynch said you don’t need legislation to do this. The governor appoints the CPUC.
Lynch said the governor could appoint regulators who won't give utilities like PG&E everything they ask for, rather than trying to rush legislation that tweaks the spending.
“It’s small potatoes. The scuttlebutt is they are going to save a billion dollars. Frankly, a billion dollars is just a start and certainly not a finish. Just last week, the CPUC authorized $1.2 billion in extra cost for the Oakland headquarter move of just PG&E,” Lynch said.
Wildfire mitigation is also a pricey project that could be reduced.
“The CPUC allowed PG&E to underground over 1,300 miles of transmission line at a cost of over $6 million a line when a just as safe alternative exists to cover the conductor, and that only costs $300,000 to $600,000 a mile,” Lynch said.
Lynch also said utility companies currently buy 17% more power than they need each day.
She's concerned to see the CPUC pushing them to buy additional power, which would come at a premium cost.
ABC10 reached out to Governor Newsom’s office who said they have nothing to share at this time.
PG&E sent ABC10 the following statement: "PG&E remains committed to finding legislative and regulatory solutions that truly address customer affordability and prioritize our wildfire safety work. We’ll review any legislation that is introduced."
ABC10 called multiple members of the Senate Energy Utilities Committee, but none had heard about the proposed changes.
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