On Thursday, February 27th, the Little Hoover Commission conducted the first of several hearings on electricity costs. At the hearing, Severin Borenstein from UC Berkeley and Matthew Freedman from The Utility Reform Network were joined by RCRC’s John Kennedy and Leigh Kammerich to discuss the state’s rising energy costs, the factors influencing those increases, and a range of potential legislative and regulatory solutions.
RCRC’s presentation focused on affordability challenges in rural areas; energy challenges related to wildfire risk, energy reliability, and capacity constraints; evaluating recent California Public Utilities Commission recommendations on strategies to reduce ratepayer bills; critiquing proposed changes to the California Climate Credit; and offering insights on hidden cost pressures flowing from recent legislative mandates.
RCRC suggested careful consideration of the tradeoffs and price increases that would result from several of the recommendations proposed by the CPUC and other stakeholders. RCRC also urged a thorough evaluation of ways to reduce energy generation, transmission and distribution costs, and reconsideration of whether ratepayers can afford (or have the capacity to achieve) the state’s electrification plans in the timeframe contemplated. Many panelists, including RCRC, suggesting shifting public purpose programs that benefit all residents to a stable statewide funding source. RCRC noted that the state’s biomass procurement mandates play a key role in achieving the state’s forest health and wildfire risk reduction goals and noted that those programs represent less than $1/month on utility bills. RCRC closed by suggesting changes to expand eligibility for low-income weatherization programs in high heat areas, as those programs can have long-lasting transformative impacts that far exceed the initial investment.
The Commission’s future hearings on the topic are expected to include presentations from state agencies, investor-owned utilities, and other stakeholders.
RCRC’s presentation can be found here. For more information, contact RCRC Policy Advocates Leigh Kammerich or John Kennedy.