Statement: Gov. Newsom announces executive order designed to lower electric bills

SACRAMENTO, Calif. — Gov. Gavin Newsom announced an executive order Wednesday aimed at providing Californians relief from rising electric bills. The mandate calls on:

• The California Public Utilities Commission to pursue all federal funding opportunities that could reduce electric costs
• The state Office of Energy Infrastructure Safety to ensure that utilities are focused on cost-effective wildfire mitigation measures. 
• State agencies to look into increasing the California Climate Credit, which is a twice-annual credit funded by the state’s Cap-and-Trade program that shows up on many Californians’ electric and gas bills
• Those same agencies to look at and propose cuts to “underperforming programs and return any unused energy program funds back to customers.” 

Environmental and consumer groups are concerned the executive order sets up state agencies to cut critical clean energy programs, similar to a proposal this summer to make cuts to the California Schools Healthy Air, Plumbing, and Efficiency (CalSHAPE) program, the Self-Generation Incentive Program (SGIP), and the Solar on Multifamily Affordable Housing (SOMAH) program. That proposal was eventually defeated.

In response to the executive order, CALPIRG State Director Jenn Engstrom and Environment California Clean Energy Advocate Steven King made the following statements, 

“We need to take on high energy bills, but cutting critical programs that support school energy efficiency or solar power for low- and middle-income families is not the way to do it. The real drivers of high utility bills are wasteful utility spending and excessive profits,” said Engstrom. “Unfortunately the governor’s executive order does little to hold utilities accountable for wasting ratepayers’ money. Ensuring utilities don’t overspend on wildfire mitigation is a good step, but way more needs to be done to rein in these companies’ profligate ways.”

“If a clean energy program isn’t working as well as intended, then we should fix it. Not get rid of it. Governor Newsom’s executive order takes a highly questionable approach to reducing electric rates, aiming for small, short-term savings at the expense of both our transition to clean energy and our environment,” said King.  “The costs to society for not investing in energy efficiency and solar now are much greater than the alternatives.”