Newsom Orders Regulators to Address Energy Costs
Governor Gavin Newsom issued an executive order aimed at finding ways to reduce electricity costs in the state. Newsom ordered the California Public Utilities Commission (CPUC), California Air Resources Board (CARB), and the California Energy Commission (CEC) to review programs and develop ideas to address rising electricity costs.
The governor’s office states that these actions encourage electric bill relief while maintaining the state’s commitment to achieving carbon neutrality and 100% clean electricity by 2045. “We’re taking action to address rising electricity costs and save consumers money on their bills,” Newsom said. “California is proving that we can address affordability concerns as we continue our world-leading efforts to combat the climate crisis.”
Executive Order N-5-24, issued on October 30, 2024, ordered the following:
Provide credits on electric bills: The order asks CPUC to identify underperforming programs and return any unused energy program funds back to customers receiving electric and gas service from private utilities through credits on their bills.
Maximize the California Climate Credit: The order directs CARB to work with the CPUC to determine ways to maximize the California Climate Credit. Many consumers receive the Climate Credit twice a year from the state’s cap-and-trade program.
Evaluate programs and regulations for long-term savings: The executive order asks the CPUC to evaluate electric ratepayer supported programs and costs of regulations and make recommendations on additional ways to save consumers money. The order also directs the CEC to evaluate electric ratepayer-funded programs and identify any potential changes that could save Californians money on their bills.
Federal funding: The order asks the CPUC to pursue any federal funding available to help lower electricity costs for Californians.
Wildfire mitigation investments: The order directs the Office of Energy Infrastructure Safety, and requests the CPUC, to evaluate utility wildfire safety oversight practices and ensure that utility investments and activities are focused on cost-effective wildfire mitigation measures.