Wildfire and Climate Programs are Driving up California Electricity Bills, says State Analyst

Source: Sacramento Bee  |  By Ari Plachta

Wildfire prevention and climate programs have drastically raised Californians’ monthly electricity bills, potentially forcing state leaders to balance ambitious carbon emissions goals with affordability concerns, the state analyst said. Lawmakers “may be faced with a frank decision about how to balance the state’s ambitious greenhouse gas reduction goals — and all of the associated benefits — against the inevitable costs that will result for ratepayers,” the report found.

Mark Toney, executive director of The Utility Reform Network, said the report underscores the ability of smaller publicly owned utilities to stay on course to meet climate goals while keeping rates low. “The IOUs have basically been issued a credit card with no limits and a guarantee that someone else is going to pay the balance,” he said. “I’m hoping legislators will look at this report and ask what can we do to set limits on annual overspending.” He pointed to several policy options for lawmakers, including placing limits on shareholder returns, creating public financing options, restricting the use of less-regulated accounts, or using a financial tool called securitization to make rates more affordable. “The utilities were able to kill almost everything they didn’t like last year,” Toney said. “At some point elected officials just have to stand up and say this time we’re going to put ratepayers in front of Wall Street investors.”