California senators demand answers from utilities as electricity prices soar, leaving residents struggling to pay their bills.
At a Glance
- California senators grilled CPUC over approving six PG&E rate hikes in the past year
- PG&E reported record profits of $2.4 billion in 2024 and $2.2 billion in 2023
- Electricity costs in California have increased by 56% over three years
- CPUC attributes high costs to wildfires, inflation, and storms
- Senators push for utility companies to bear more financial burden instead of ratepayers
Senators Confront Utilities Over Rising Costs
California state senators are taking a stand against the rising electricity prices that are burdening residents across the state. In recent hearings, legislators grilled representatives from the California Public Utilities Commission (CPUC) and Pacific Gas & Electric (PG&E) over the approval of multiple rate hikes and the impact on consumers struggling with affordability.
Senator Aisha Wahab set the tone for the hearings with a forceful statement regarding the treatment of ratepayers. “Ratepayers are not a bank, I’m just going to be very clear about that,” Wahab said.
Record Profits Amid Consumer Struggles
The contrast between utility company profits and consumer hardship was a central focus of the hearings. PG&E reported record profits for two consecutive years, with $2.4 billion in 2024 and $2.2 billion in 2023. Meanwhile, Californians are grappling with average monthly electricity bills of $295.
This stark disparity led Senator Jerry McNerney to question whether some financial burdens could be shifted to PG&E shareholders instead of ratepayers.
Factors Behind Rising Costs
CPUC Commissioner Matt Baker attributed the high electricity costs to a combination of factors including wildfires, inflation, and storms. Since 2019, nearly $30 billion has been added to service costs, primarily in PG&E’s territory.
State Sen. Mike McGuire highlighted an alarming trend, however, noting a 56% increase in electricity costs over three years and a staggering 120% increase over nine years.
“Where I feel incredibly frustrated is I hear PG&E say it’s because of the wildfire charge. You know why there’s a wildfire charge? Because you didn’t do your damn job for 30 years, and the climate has changed around you,” McGuire said.
In response to the mounting pressure, CPUC President Alice Reynolds stated that efforts are being made to reduce rates by urging utility companies to cut costs. “We do make efforts to reduce the amount that they’re seeking as much as possible and force them to be efficient and force them to do a better job,” she said.
Governor Gavin Newsom has also taken action, signing an Executive Order for CPUC and the California Energy Commission (CEC) to investigate cost-saving measures for residents. The CPUC’s report suggested using non-ratepayer funds to cover state programs, potentially reducing electricity costs by 15%.
