2025 Legislative Analyst’s Office Report: Rate Insights
Residential electricity rates in California are nearly twice as high as the national average.
This disparity is primarily driven by the steep rates charged by the state’s three largest investor-owned utilities (IOUs). These rates are not only rising faster than inflation but are also outpacing increases in other states.
Key Takeaways
High Electricity Rates Are Unsustainable
Inside the Report: California’s electricity rates are among the highest in the nation and continue to rise, making basic energy needs unaffordable for many families.
Utilities Are Profiting at Customers’ Expense
Inside the Report: Investor-owned utilities are shifting wildfire mitigation costs, renewable energy investments, and profits for shareholders onto consumers.
High Costs Are Undermining California’s Clean Energy Transition
Inside the Report: Rising electricity rates discourage the adoption of essential green technologies like electric vehicles and heat pumps, putting California’s climate goals at risk.
To access the full report, visit the link below. For additional information, please visit: LAO Website.