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Governor Hopes Order Curbs Soaring Bills from Pacific Gas and Electric, Other Utilities

Source: Bay Area News Group (San Jose Mercury) | By George Avalos

“Gov. Newsom’s executive order is an important first step to solving the affordability crisis facing California families, small businesses, steel and glass makers, manufacturers, and agriculture producers,” said Mark Toney, executive director of The Utility Reform Network, or TURN, a consumer group. Both PG&E and TURN said they looked forward to cooperating with the governor’s office to help tackle the utility bill woes that confront millions of California electricity and gas customers.

While it’s unclear if the executive order will have any immediate effect, it does come at a time when PG&E bills have zoomed at a pace that’s eight times faster than the Bay Area inflation rate. In 2023, PG&E’s monthly bills for residential customers soared 22.3%. Over the same 12 months, the Bay Area inflation rate rose 2.6%

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Newsom Signs Executive Order to Drive Down Electricity Costs

Source: Courthouse News Service | By Alan Riquelmy

Mark Toney, executive director of The Utility Reform Network, in a statement called the executive order an important first step in addressing the state’s affordability crisis that families, small businesses and others face. “TURN looks forward to working with the governor’s staff on affordability strategies not in the [executive order] that will save ratepayers billions in spending, including setting limits on utility overspending, requiring least cost solutions to wildfire safety, and public financing options to reduce the cost of wildfire safety capital investments,” Toney said. 

California regulatory agencies have taken the brunt of public outcry over high utility prices for months. The state’s Public Utilities Commission regularly hears angry, even threatening, comments related to electricity prices. Newsom’s executive order seeks to assuage those concerns. The governor also ordered the Office of Energy Infrastructure Safety, and asked the utilities commission, to examine wildfire safety practices, ensuring that investments are cost effective.

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California Governor Newsom Issues Executive Order on Rising Electric Bills— but how Much Will It Help?

Source: San Diego Union Tribune | By Rob Nikolewski

The Utility Reform Network, the San Francisco consumer group commonly known as TURN that often weighs in on utility issues, called Newsom’s executive order “an important first step to solving the affordability crisis” facing California ratepayers.

Gov. Gavin Newsom issued an executive order Wednesday aimed at finding ways to reduce rising electricity bills that beleaguered customers pay each month — although the order did not offer specific dollar figures and timetables. Newsom’s executive order calls for “smarter wildfire mitigation investments” by directing state regulators to evaluate utility oversight and ensure that spending is “focused on cost-effective” measures. The order also:

—calls on the California Public Utilities Commission to identify underperforming programs and return any unused money to utility customers through credits on their bills

—asks the utilities commission review the costs of regulations of various programs, pursue federal funding options to help lower electric bills and directs the California Energy Commission to look at cost-saving measures, and

—instructs the California Air Resources Board to find ways to increase the California Climate Credit that utility customers receive two times each year.

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What’s with the Mailers Offering Home Protection Plans to PG&E Customers?

Source:The Press Democrat | By Marisa Endicott

“While this is clearly optional — there’s no question about that — I think a lot of people feel it’s tone deaf coming on top of record breaking bills,” said Mark Toney, executive director of The Utility Reform Network, a nonprofit consumer advocacy organization, who said his organization has also received inquiries about the partnership. “They say they’re working to reduce costs, but this is pushing an optional service, an insurance product, that some people will benefit from and most won’t because that’s how insurance is supposed to work.”

One of the seven pages in the mailer explains that HomeServe is not an affiliate of PG&E and that the utility “is not responsible for, and does not endorse or provide guarantees for, plans offered by HomeServe.” But the packet also contains a letter from a PG&E vice president, Chris Zenner. “We have some exciting news to share with you!” he writes. “As a valued PG&E customer, you have access to home protection plans from HomeServe.” He goes on to say that “HomeServe is a trusted provider of home protection programs” and that customers can now enjoy “the convenience of” having the company’s charges added to their PG&E bill. It also provides PG&E with revenue in the form of a fee paid by HomeServe for billing and payment processing services. Most of that fee “is used to lower rates, keeping the prices customers pay lower than they otherwise would be,” according to a PG&E webpage, although Paulo declined to provide a percentage.

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Brace for Higher SDG&E Bills After Utilities Commission Releases Proposed Decision on Rates

Source: San Diego Union Tribune | By Rob Nikolewski

Mark Toney, executive director at The Utility Reform Network (TURN), a consumer advocacy group that testified during the proceeding, says SDG&E ratepayers are already getting socked financially. “The bottom line is that this is the worst time for San Diego and Southern California customers to be hit with major increases to both utilities.” TURN criticized the commission for issuing the proposed decision so late. “What that means is the increase is going to be magnified because they have to catch up,” Toney said. “The delay magnifies the rate shock.”

San Diego Gas & Electric customers would pay 2.7% more on their electric bills starting next year while customers with natural gas hookups may pay almost 9% more, according to a proposed decision released Friday afternoon by the California Public Utilities Commission. According to the proposed decision, typical SDG&E residential customers using 400 kilowatt-hours of electricity per month would pay $170.87, which represents a $4.46, or 2.7%, increase compared to what they currently pay. The percentage increase would be the same for customers enrolled in the California Alternate Rates for Energy (CARE) financial assistance program.

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‘It’s More than your Rent’: Locals React as Newsom Promises to try Lowering PG&E Bills

Source: CBS47 and KSEE24 Fresno | By Ben Morris

“There are no limits to how much the public utilities can grant in an increase,” said Mark Toney, executive director for The Utility Reform Network. “Utility debt has quintupled over the past four years. It’s five times more than it used to be,” he said.

“There are a lot of things on your bill that I don’t think should be on your bill,” said Governor Newsom. “There are a lot of programs in this state that frankly stack up. And then, everybody pays for what only a few people are taking advantage of,” he said. However, in addition to dollars going to programs and policies, rate increases continue to hit families hard. In September, the California Public Utilities Commission unanimously passed its fourth PG&E rate hike of the year.

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PG&E Customers Skeptical of Optional Third-Party Protection Plan

Source: FOX2 KTVU | By Tom Vacar

Consumer advocate Mark Toney of The Utility Reform Network (TURN) blasted the initiative saying, "PG&E executives will stop at nothing to empty the pockets of their customers.”

Customers have received letters from a company called HomeServe, which offers a monthly service for $6 that will cover water meter failures. For another $6 per month, the service would pay for certain electrical equipment not covered by PG&E. The third page of the form, which appears on PG&E letterhead and signed by a vice president, calls HomeServe a trusted provider that has been thoroughly vetted. HomeServe's charges would appear directly on the customers' PG&E bills.

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PG&E Ratepayers Face Fourth Rate Hike This Year Amid Financial Recovery Efforts

Source: ABC7 News | By Muna Sadek

"So much of the increase today is based on overspending," Executive Director Mark Toney said. "I would say thatfor any overspending that shareholders should pay 50 percent of all cost overruns." TURN sponsored a recent bill in the State Legislature that would have required just that but Toney said PG&E ultimately killed it. "Every bill that PG&E didn’t like because it would reduce shareholder returns, it would set limits on how much ratepayers had to pay, PG&E was able to kill," Toney said.

PG&E ratepayers will see their bills go up a little over $5 a month soon, after the California Public Utilities Commission approved the increase Thursday morning. The utility says it needs the funds to recoup losses following recent storms and wildfire mitigation projects, however a number of ratepayers made public comments ahead of the vote to voice concerns about what would be the company's fourth rate hike of the year.

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Can AI Save the Grid… from AI?

Source: Politico| By Blanca Begert, Tyler Katzenberger, Alex Nieves, Will McCarthy and Wes Wenteicher

“We need to fix a broken system where there are no limits to how much PG&E can request in rate increases, and no limits to how much the CPUC can grant in rate increases,” Mark Toney, executive director of The Utility Reform Network, said in a statement.

Utility and energy professionals in California and beyond are acknowledging a paradox. On the one hand, they’re looking eagerly at how advances in machine learning and artificial intelligence can help them manage the grid, predict fires and outages and respond more flexibly as energy demand grows.

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California Regulators Approve Another PG&E Rate Hike

Source: NBC Bay Area | By Ian Cull and Kris Sanchez

Mark Toney with The Utility Reform Network, or TURN, disputes that claim. "PG&E is half true by saying that some of the money increases are due to storms, but much more of the money is due to overspending on the vegetation management," Toney said. PG&E said its investments are delivering results and officials point to some relief coming in October in the form of a $55 one-time climate credit. Meanwhile, ratepayer advocates continue their push to put a limit on rate hikes. "TURN has been fighting for a cap on utility bill increases to be no more than the cost of living adjustment provided by social security," Toney said.

PG&E customers will soon see their bills go up again. The California Public Utilities Commission on Thursday approved another PG&E rate increase, which would bring bills up about $6 a month on average. The decision marks the fourth time PG&E was granted a rate increase this year. PG&E said it needs to bump up bills in order to make back what it lost during last winter’s major storms.

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California Lawmakers Punt on Chances to Deal with Utility Bill Crisis

Source: Canary Media | By Jeff St. John

We’re concerned that time is running out for the policymakers to do something,” said Mark Toney, executive director of The Utility Reform Network (TURN), a ratepayer advocacy group. In a Sunday statement, Toney accused the utilities of using their lobbying might to prevent securitization from making its way into law. There is overwhelming public support for reducing customer bills, holding utilities accountable for getting the most wildfire safety at the least cost to ratepayers, and making utility investors pay for overspending,” Toney told Canary Media, citing polling conducted by TURN

The state’s utilities have to expand their power grids to support the shift to carbon-free electricity, and they must harden those grids to reduce the risk that they’ll cause deadly wildfires. But these costly projects are the main driver of California’s sky-high and still-rising electricity rates, which have sparked an affordability crisis that threatens to derail the state’s energy transition.

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‘When is it Going to Stop?’: Frustration Mounts Over Another Proposed PG&E Rate Hike

Source: NBC Bay Area | By Velena Jones

The Utility Reform Network (TURN) opposes PG&E's rate hike request, arguing that it places an increased burden on ratepayers. The watchdog group noted this is the fourth rate hike this year. "PG&E customers were hit with a $34 increase at the beginning of the year," TURN Executive Director Mark Toney said. "Customers were hit with another $4 increase in March. Customers were hit with another increase of at least $6, and there is going to be more before the end of the year.” "As soon as it goes down, they come in with another request so that the bill goes back up," Toney said. "The fact is even with the decrease they are talking about, temporary decrease, customers are still paying far more today and later in the year than before the beginning of the year."

PG&E officials also noted that a temporary 9% rate decrease that began in July means that ultimately more customers should still be paying less even if the new hike is approved. Utility critics said all those reductions and credits are only temporary relief to what feels like an ongoing problem of repeated rate hikes.

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Your PG&E Bill Might See Another Rate Hike by the End of Year

Source: ABC7 News | By Cornell Barnard

"There are no limits to how much the Public Utilities Commission can grant in hikes, that's why TURN has been fighting for a cap on increases no more than the cost of living adjustment, provided by social security," said Mark Toney, Executive Director for TURN. TURN, The Utility Reform Network says, PG&E has been granted too many hikes this year alone. "We're looking at the fourth rate hike in 2024 alone, and every rate hike is like the tip of the iceberg, every hike stacks on top, that's why people are so angry," said Toney.

Your PG&E bill could jump another $6 per month before the end of the year. The price of natural gas rose in September, about $5.78 more on an average PG&E bill. The utility says a decrease in demand for gas is the reason. For months, utility watchdogs have been calling for fair utility rates but next week, the California Public Utilities Commission could grant PG&E yet another electricity rate increase of 2.7% about $6 more on an average bill.

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Newsom Energy Plan Sparks Tug of War with Lawmakers in Final Hours of Legislative Session

Source: Los Angeles Times | By Hayley Smith & Melody Petersen

Mark Toney, executive director of The Utility Reform Network (TURN) — a consumer advocacy group — said the governor’s original electricity affordability plan included a measure that would have lowered the interest rates that utilities earn on capital investments such as transmission lines and power plants. Current policy encourages utilities to build expensive infrastructure because they get to recover the cost — plus annual interest that is typically 10.5% — through rates billed to customers. The original plan was aimed at reducing that rate through a financing technique called securitization. “It would create significant savings,” Toney said of the original proposal.

Amid tense, closed-door negotiations, Gov. Gavin Newsom and Democratic lawmakers have released a suite of seven bills that aim to reduce Californians’ soaring energy costs — including a controversial electricity affordability plan that critics say was substantially weakened by lobbying from utilities and will offer little real relief.

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A Stunt or First Step? Inside California’s Last-Minute Effort to Cut Electric Bills and Streamline Clean Energy

Source: Cal Matters | By Alejandro Lazo, Julie Cart, and Alejandra Reyes-Velarde

But Mark Toney, executive director of The Utility Reform Network, supported the measures, saying they are “an important first step towards affordable energy for all California residents.” He has called lowering ratepayers’ costs an urgent priority because the state could lose public support for clean energy.

Two other major bills died: SB 1272, which would have fast-tracked renewable energy projects, and SB 1003, which would have increased oversight of utilities’ wildfire costs. Only three of the six energy bills were sent to the governor:  AB 3264, which which will study transmission capacity costs, SB 1420, which streamlines hydrogen facilities, and SB 1142, which prevents power shutoffs for ratepayers with payment plans. 

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PG&E Working to Curb Growing Number of Wildfires Started by Own Equipment

Source: ABC 7 News | By Dustin Dorsey

Mark Toney is the executive director for the Utility Reform Network and says bills have skyrocketed more than 100% in the past four years. With this latest fire data, Toney says it's fair for customers to question if the increases are worth it. "The customers are paying the price of more expensive and much slower wildfire safety," Toney said. Toney would prefer to see cheaper, faster ways of wildfire mitigation -- like insulated lines -- over seemingly constant increases with little results.

As the peak of the wildfire season quickly approaches, PG&E is working just as fast to put a stop to fires caused by its own equipment. The utility is reporting 62 fires caused by power lines this year, nearly equally the total from all of last year. To make the electric system safer, and reduce wildfire risk, sometimes exceptional costs have to be incurred. That's been PG&E's message as to why rates have increased so much in the last few years. But wildfires have not decreased.

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Soaring California Electric Bills Could Prompt Last-Minute Lawmaking

Source: ABC 10 | By Devin Trubey

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.

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.

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Electric Bills Have Essentially Doubled Over the Past Decade

Source: Orange County Register/ SoCal News Group | By Teri Sfora

Edison, to its credit, decided to go the insulated overhead route as much as possible, costing some $800,000 a mile. PG&E, however, decided to bury many lines — slower and not measurably safer — costing some $4 million a mile, The Utility Reform Network’s Mark Toney recently told us. The fault lies squarely with the CPUC, Toney said — the “overly generous” regulator responsible for reviewing and approving increases. TURN’s Toney would agree. He’d love to see utilities face a cap in how much they can seek in increases, and new rules that would require utilities to use the least expensive solution when possible. He’d also like to see shareholders pay half of the cost of overruns when utilities overspend. That way it wouldn’t all fall on ratepayers. “That would reduce costs immediately!” Toney told us. “The sad truth is, companies are more accountable to their shareholders than they are to their ratepayers.”

It’s important to point out here that electric companies don’t make money by selling electricity. Instead, they make money from the CPUC-set rate of the return on their capital investments; that’s their profit. So there’s a built-in incentive for utilities to spend more money on capital investments than they might need to. The quicker and less expensive way for an electric company to harden its system is to use above-ground, insulated poles and wires rather than digging down in the dirt and burying lines. The safety profile is essentially the same, experts say.

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California Regulators Approve Adding Fixed Charge of Up to $24 to Utility Bills

Source: KQED | By Alix Soliman, Guy Marzorati, and Kevin Stark

Right now, in California, if you use a lot of electricity, you pay more. If you live an energy-efficient lifestyle, you pay less. Sylvie Ashford, an energy analyst for The Utility Reform Network, or TURN, said that won’t change. The group supports the new fixed rate, which Ashford said will incentivize people to convert to clean energy. “Consumers report one of the biggest barriers to buying electric vehicles and electric heat pumps to be the high and rising cost of electricity,” Ashford said. “When it becomes 8% to 10% cheaper on each kilowatt hour, your operating costs on your electric vehicle or your electric heat pump become that much more competitive with polluting gas alternatives.” Ashford said that while fixed rates are a good first step, the state must do more to address California’s skyrocketing electricity fees, like keeping utility revenue requirements and shareholder profits in check.

Starting late next year, most California residents will see a new fixed charge of up to $24.15 on their monthly electric bill. In exchange for the new charge, the price of electricity will drop by between 5 cents and 7 cents per kilowatt hour.

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Ratepayers Spend Millions to Save Billions on Utilities, but Why Do We Have to?

Source: The OC Register | By Teri Sforza

The largest group getting intervenor comp, by far, is TURN. It requested $26.4 million between 2020 and early 2024, and was awarded $24.8 million. Over that time, it has saved Californians hundreds of millions of dollars, its accounting shows. In a typical year, its legal staff of 12 attorneys and five policy analysts work on about 100 proceedings at the PUC. For example, TURN recently: Helped win a ruling preventing SDG&E from recovering $514 million from customers that it spent on wildfire mitigation before a reasonableness review by the PUC. Helped win a ruling preventing Edison from recovering $85 million from customers that it spent on tree trimming in non–high fire risk areas. Helped win $400 million in savings for PG&E, SCE, SoCal Gas and SDG&E ratepayers by getting PUC to reduce “Cost of Capital” profit rates (more on that in a minute)…

Electric rates, gas rates, water rates — they go up. And up. And up. Policing these regularly scheduled consumer agonies — or rubber-stamping them, as critics often charge — is the job of the California Public Utilities Commission. This powerful regulator is charged with ensuring that rate hikes and policy decisions are fair and justified

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