New big tent coalition, Campaign for Affordable Power, urges Gov. Newsom and lawmakers to support affordability package
Coalition applauds Senate’s SB 254 release; calls for swift passage alongside CAP’s affordability measures for both immediate relief and long‑term savings
Sacramento, CA — The Utility Reform Network (TURN) and the Campaign for Affordable Power (CAP) coalition gathered outside of the Capitol today to urge Governor Newsom and lawmakers to stand up against utility pressure and support the Campaign for Affordable Power (CAP) bill package and the long-promised Senate affordability package, now SB 254. The Utility Reform Network led efforts alongside coalition members AARP, the California Large Energy Consumers Association, the Agricultural Energy Consumers Association, California Farm Bureau, California Metals Coalition, California Community Choice Association, and the Small Business Utility Advocates.
“SB 254 and the CAP measures together deliver both the structural reforms we need to rein in runaway utility costs and the immediate bill relief families deserve. We thank Senate leaders for moving SB 254 forward. Now it’s time for Governor Newsom and the Legislature to act so Californians see lower bills this year and beyond,” said Mark Toney, executive director of The Utility Reform Network.
Legislative efforts for rate relief follow multiple rate hikes from California’s for-profit owned utilities to increase shareholder profits. Among the most egregious, PG&E earned $2.48 billion in 2024 after six rate hikes, and just requested yet another rate increase to boost shareholder profits. Advocates are urging lawmakers to live up to their commitments to their constituents and support key affordability legislation.
“Energy affordability isn’t just a concern for households. Farmers and ranchers are feeling the pressure too. Agricultural customers have seen similar rate increases, but with fewer options to manage or reduce those costs,” said Kevin Johnston, Director and Counsel at the California Farm Bureau. “Because farmers and ranchers can’t simply raise prices to cover these expenses, it often leads to consolidation, fewer California-grown products, and less investment in on-farm improvements like electrification. That runs counter to California’s climate goals and efforts to strengthen local food security.”
Currently, one in five ratepayers is behind on their energy bills. While the number of families behind on utility payments increased, California’s largest for-profit utilities reported record-breaking profits in 2024. Advocates point to an outdated system that rewards wasteful spending at the expense of ratepayers, specifically artificially inflated rates of Return on Equity, which allows utilities to earn a guaranteed profit on spending for expensive infrastructure projects. It's clear: utility greed and pollution are driving up costs.
“The California Large Energy Consumers Association represents energy-intensive industries that produce goods essential for daily life, such as critical infrastructure, oxygen for hospitals, and food distribution. To compete with companies outside California and abroad, power must be affordable; yet California’s soaring electric rates, three times higher than neighboring states, make this increasingly difficult,” said Bruce Magnani with CLECA (California Large Energy Consumers Association). “Failure to enable competitively produced essential manufactured goods in California is an abdication of our state’s leadership as the world’s fifth-largest economy, drives up global emissions due to emissions leakage, and hinders efforts to electrify and decarbonize industrial processes. California’s staggeringly high industrial electricity rates demand urgent action.
“California’s metal manufacturers compete around the world, and skyrocketing energy rates are making it harder to compete, expand, and retain jobs in California. We urge lawmakers to take action that protects customers and ensures affordable, predictable electricity for metal manufacturers that employ working families with livable wages,” said James Simonelli, executive director of California Metals Coalition.
TURN and other affordability advocacy groups agree, lawmakers can deliver real relief by passing critical reforms that tackle the root causes of soaring bills by requiring cost-effective solutions, cutting excessive profit margins, and modernizing how we finance and build critical infrastructure.
“AARP looks forward to working with fellow consumer advocates, such as TURN, to fight for more affordable energy bills for our 3.2 million California members and their families. Never-ending rate increases are endangering the health and financial well-being of our state’s fast-aging population. Utility companies and elected officials have a responsibility to ensure that when older Californians, now and in the future, reach for the thermostat, they can have the peace of mind that they are paying for fair, reliable, and safe energy,” said Nancy McPherson, AARP California State Director.
The CAP coalition stands ready to work with the Governor and legislators to secure passage of SB 254 and the CAP’s complementary bills before the session ends, delivering immediate relief and locking in long‑term savings for all Californians.
“Wildfire mitigation and California’s push for electrification are critical, but right now, the costs fall disproportionately on utility customers, especially small businesses served by investor-owned utilities. Utility bills have ballooned to unsustainable levels, and rate hikes don’t scale with income. We need a more equitable model; one that includes broader state funding and supports climate resilience across the board,” said Britt Marra, Executive Director, Small Business Utility Advocates. “Small businesses, which are vital to our communities, operate on tight margins and can't simply reduce usage like larger players. These rising bills are devastating, particularly in climate-impacted regions where refrigeration, cooking, and air conditioning are non-negotiable. It’s time for fairer funding and policies that allow our local businesses to survive and thrive.”
“Unfortunately, we have reached a tipping point. California’s exceedingly high rates are harming residents as well as large and small businesses alike, destroying the state’s economy and driving inflation. It is past time for the Governor and legislature to do something about it. Talk is meaningless…..it’s time for action!,” said Michael Boccadoro, Executive Director, Agricultural Energy Consumers Association.
The Campaign for Affordable Power supports current legislative efforts including SB 330 (Padilla), AB 1167 (Berman, Addis), AB 1020 (Schiavo), SB 636 (Menjivar), SB 24 (McNerney), AB 1167 (Berman), and SB 254 (Becker) to protect consumers and lock in real savings.
For a video recording of the press conference, click here.
Contact: Lee Trotman • TURN Communications Director • LTrotman@turn.org
Alexandra Nagy • Alexandra@sunstonestrategies.org
