Sacramento, California (AP)-California lawmakers have set up a few efforts this week to relieve the profits of utility services and to reduce the electricity bills as part of their agenda to resolve the living costs in the sky.
Proposals would make major changes to utilities funding expensive infrastructure projects such as putting power lines underground to protect against fires. They would also supplement more maintenance for fire reduction costs and new requirements for utility requests to increase prices. Sponsors said the goal is to force large investors’ utilities to share some costs to fight fires and to create a new transmission infrastructure.
“This is not a set of modest changes that will make minor improvements at the problems of the problem without being offended by anyone,” said Josh Becker, the author of the draft law. “This is a big deal.”
One of the promissory notes is part of the state Senate package to solve affordability, taking into account high costs, starting from gas to food. The head of the Democratic Government Gavin Newsom signed an executive order last year, calling on laws to do something to decide on the rapidly increasing electricity tariffs, which on average increased by 47% of the population customers from 2019 to 2023, according to non -partisan legislative analysts.
But Republicans, who are in a minority in both palace, say that Democrats do not make sense to high prices. They did not support promissory notes of energy reform, saying that this would not eliminate costs, and they unsuccessfully tried to vote on the offer to limit the boundaries of utilities from the increase in power rates exceeding the inflation rate.
Rising norms
In recent years, the increase in utilities has been partially confirmed by the state regulatory authorities to help utilities belonging to investors to bury power lines to stop fires. Some of the mortal and most destructive fires have been prompted by energy equipment in recent years. Pacific Gas & Electric, whose equipment was caused by 2018. A fire, which was 2024. 85 people were killed, six times increased their rates to help cover the cost of developing underground and other projects of power lines.
Although one of the five rates is unable to pay their energy accounts, utilities such as PG & E, last year’s record profits, the Ratebeleer Defense Group’s “Municipal Reforms Network”. The group supports the Becker and supported similar efforts in the Assembly.
“There are no restrictions on how much utilities can ask for the increase in the rate. There are no restrictions on how many times a year they can ask,” said Group Executive Director Mark Toney. “You can’t blame them for asking for heaven.”
According to Becker’s proposal, utilities should use public funding to finance the first $ 15 billion for capital investment projects. This opportunity would allow utility companies to receive funding with lower interest rates, and utilities would also be prohibited from collecting a return on this investment for shareholders. This would save customers $ 8.8 billion in the next 10 years, Becker said.
The draft law would also establish a state -sponsored fund to compensate for utility services for fire projects, inter alia. However, the state may not have the money to pay for it this year.
The draft law would also increase the maintenance of utility budgets and their expenses outdoors. Municipal enterprises should include at least one proposal for the increase in the norm, which will not exceed the inflation rate in their requests. The proposal also calls for $ 60 billion worth of credits to apply for accounts a year in the summer months, when use is often the highest.
Opposition of Republican, Utility Services
The Senate Democrats this week were largely advanced in the Becker. However, Republicans, Utility Services and the California Chamber of Commerce said it would only increase more costs. The legislation “moves today’s usefulness without removing them,” the palace letter in the opposition states. New rules associated with rates, and shareholders’ returns can also stop utilities in fire prevention or network reinforcement, the letter said.
Senators of the Republican state said that rising bills are caused by Democratic policy and encourages more electric vehicles and less depending on fossil fuel. Meanwhile, in the Assembly, Republicans called for reforms to develop better utilities infrastructure faster and cheaper.
“The regulatory mode we have in this state is depressing and undoubtedly promotes prices,” said Republican elder Roger Niello. “Your affordability package is quite modest, but it is even more modest due to its possible effect.”
Legislers have also improved many other measures to facilitate taxpayers, including those banning utilities to use rates to pay for lobbying efforts and the one that allows California to join the regional energy market with other Western states to help increase the credibility of the network.