(California), USA —
Speculation has been circulating that Governor Gavin Newsom may submit legislation to limit PG&E expenditure and reduce prices for everyone power bills before the end of the month’s legislative session.
At the very least, ABC10 has confirmation that a bill is in the works. A nonprofit that promotes energy efficiency has confirmed that its members have attended briefings and meetings regarding potential legislation. By the weekend or early next, you might be able to see a real proposal.
Not only does the California Energy Commission claim not to comment on legislation in the works, but they have also hinted that legislation may be in the works.
According to Mark Toney of the energy advocacy group The Utility Reform Network (TURN), who has been briefed on the proposal, he anticipates seeing a written version by next week.
Toney reported that PG&E was making record profits as they were facing record bills.
Although he refrained from commenting on the talks, he did join other advocacy groups in a letter requesting that energy efficiency programs not be reduced. His recommendations include a cap on rate increases imposed by the California Public Utilities Commission (CPUC).
SEE MORE –
New York City Proposed Bill: Landlords Mandated to Provide AC for Tenants
At this time, neither the amount nor the frequency with which utilities can make such requests are capped. According to Toney, the CPUC has unlimited authority to grant rate increases.
That’s the case this year when PG&E’s bills increased by 30%.
Customer advocates believe that utility companies, such as PG&E, should limit their spending. They claim that utilities are promoting costly programs that are ineffective. However, according to Loretta Lynch, the former president of the CPUC, this does not necessitate legislation. The CPUC is appointed by the governor.
Lynch suggested that instead than attempting to hastily pass legislation that changes the budget, the governor may select regulators who will not grant utilities like PG&E all of their requests.
“It’s insignificant. Supposedly, they will end up with a billion dollars in savings. To be honest, a billion dollars isn’t the end goal; it’s just the beginning. Lynch noted that the CPUC sanctioned an additional $1.2 billion for PG&E’s headquarters move to Oakland only last week.
Reducing the cost of wildfire control is another possible option.
According to Lynch, there is a cheaper and equally safe option to undergrounding more than 1,300 miles of transmission line. This alternative costs approximately $300,000 to $600,000 per mile. However, the CPUC allowed PG&E to spend nearly $6 million per line.
According to Lynch, utility firms are currently purchasing 17% more power than what they require on a daily basis. The fact that the CPUC is pressuring them to purchase more expensive power worries her.
When ABC10 contacted the office of Governor Newsom, they stated that they do not have any information to give at this time.
When contacted for comment, PG&E likewise remained silent as of publication.
Even though ABC10 contacted many senators on the Senate Energy Utilities Committee, not a single one of them had heard of the planned modifications.