The California Public Utilities Commission’s unanimous resolution to charge the investor-owned utility’s residential customers a flat rate of $24.15 per month starting in late 2025 has some supporters saying it won’t be a big deal for most households. It was considered that there was no such thing. They say many customers’ bills won’t change much because it comes in conjunction with a reduction in electricity rates from 8 percent to 18 percent. And by discouraging the use of gas-powered indoor appliances, they say it will help combat climate change.
But if that’s true, why can’t it be the subject of the serious and vigorous public debate that many state legislators wanted? Why did Gov. Gavin Newsom and legislative leaders block public hearings on two bills that objected to the proposal? Why did advocates question the larger question of a decision that would affect 40 million people? Are you trying to avoid it?
The most obvious question: How can you argue that reducing the link between electricity usage and bills will serve the historic national goal of reducing electricity usage? “If you want to design a policy that will protect people, this is it,” says Ken Cook, chairman of the Environmental Working Group. Millions of people living in smaller homes and apartments will have to pay more, while people living in larger homes that use significantly more electricity will pay less. Considering this important fact, the need for protection becomes even more acute. The state already has great difficulty keeping the lights on, and he delayed the closure of the Diablo Canyon nuclear power plant for five years.
The policy change is seen as another example of state leaders giving PG&E, Edison and SDG&E the financial protections they desire, reflecting the surprisingly close relationship between utilities and state regulators. It only makes sense. The relationship was linked to the company’s incompetence in causing a natural gas explosion that killed eight people in San Bruno in 2010, when by far the largest electric utility, PG&E, was convicted of six federal felonies, including obstructing a federal investigation. It continues even after.
Now, utility investigations are once again being blocked by state leaders who don’t want their machinations scrutinized. This is not the way democracy is supposed to work.
