There’s a Right & Wrong Way to Address Electricity Affordability

Real Electricity Savings Requires Tough Choices—Not Arcane, Risky and Costly Proposals

36.5% of your electric bill funds state mandates, not energy use

Background

Any discussion about electricity affordability must start by understanding that state mandates and public purpose programs account for roughly 36.5 percent of the average customer’s electric bill.

There are difficult but effective solutions lawmakers can support to address electricity affordability. Yet many current proposals ignore the rising costs from state mandates and instead pursue untested and risky policies that will increase, not decrease, electricity bills while jeopardizing reliable power, clean energy and wildfire mitigation.

Rather than pursue untested and risky solutions, legislators must ask whether all current state mandates and programs are necessary, whether all justify higher electric bills, or if there are alternative ways to pay for worthy programs without placing all responsibility on electricity customers.

GET THE FACTS:
The Right & Wrong Ways to Address Electricity Affordability

RIGHT: Tough but Effective Proposals

  • Reduce certain state-mandated programs paid through electricity bills or consider funding with alternative state resources
  • Reduce or find an alternative funding source for billions in subsidies for rooftop solar that increase non-solar customers’ bills by 14%
  • Reduce or find alternative funding for renewable energy requirements that increase customer bills by 2.6%
  • Revaluate energy efficiency programs
  • Use alternative funding for wildfire mitigation benefiting all Californians
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WRONG: Unworkable, Risky & Costly Proposals

  • Creating new state agencies to finance and operate energy transmission and generation projects – resulting in higher costs for ratepayers and taxpayers while jeopardizing reliability
  • Making it more costly for utilities to finance wildfire mitigation and reliable infrastructure by undermining utility creditworthiness
  • Restricting investments in reliability, wildfire mitigation, clean energy and other infrastructure by establishing arbitrary caps
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Legislators must reject costly and risky proposals and pursue real, thoughtful reforms that protect customers and strengthen California's energy future.