Key takeaways:
– California Governor Gavin Newsom issues an executive order to curb escalating electric bills.
– The move includes a closer examination of utilities’ wildfire mitigation costs, which make up about 13% of customers’ bills.
– Despite being the state with the second-highest energy costs in the US, California aims to achieve 100% clean electricity by 2045.
– The governor’s administration has been instructed to identify “underperforming or underutilized programs” for potential closure, with unused funds to return to the customers.
“Curbing Rising Electrical Costs: Governor’s Order in Focus”
In response to the escalating frustration of Californians over rapidly mounting electric bills, Governor Gavin Newsom has taken decisive action this week. He has issued an executive order aimed at mitigating the financial burden on the public by closely scrutinizing how utilities expend funds to prevent wildfires.
Exploring Alternatives to Check Bill Surges
The executive order issued by Governor Newsom prompts the state’s Public Utilities and Energy Commissions to devise tactics to suppress power bills’ growth or, ideally, reduce them in the future. This move arrives amidst heightened public outcry over continually piling up electricity bills, which propelled the governor into prompt action.
Scrutinizing Wildfire-Fighting Expenditure
The governor has sought a comprehensive review of how utilities use their resources to impede transmission lines from sparking destructive wildfires. The expenses incurred in these preventative measures account for approximately 13% of the monthly electricity bills paid by the Californian public.
Newsom’s Evolving Strategy Against Surging Energy Costs
As the Tuesday election looms closer, there’s a growing emphasis on the economic implications being experienced at individual households. Notably, California’s electric rates rank second in the nation, trailing only behind Hawaii. They’ve recorded upsurges of up to 110% within the past decade and between 20% to 50% in the past three years for the major for-profit utilities.
Under Newsom’s tenure, energy-related initiatives have gained momentum. For instance, before the close of the last legislative session in August, the governor and fellow Democratic lawmakers unveiled an assortment of energy-influencing bills. Furthermore, Governor Newsom demanded lawmakers reconvene for a special session, focused on a bill mandating an increment in gasoline reserves at oil refineries to curb price hikes.
Climate Goals Vs. Rising Electric Rates
While committed to transitioning to 100% clean electricity by 2045, escalating electric rates linked to swift infrastructure development for renewable energy have posed a challenge for Newsom. His administration has been directed to identify and possibly terminate underperforming or underutilized programs funded by electricity customers. Any extra funds from these programs would return to the customers.
Increasing California Climate Credit
The executive order also instructs the state’s Air Resources Board to evaluate the potential increase of the California Climate Credit. Additionally, the state’s Public Utilities Commission is directed to tap into federal funding prospects to further alleviate electric costs.
Mixed Reactions to the Executive Order
While the order has garnered support from stakeholders like David Eisenhauer, a spokesperson for Southern California Edison, others have expressed concern. CALPIRG, a consumer group, voiced their fears over potential cuts to essential clean energy programs and called for more accountability from utilities in terms of their spending habits.