{"id":463098,"date":"2025-04-23T05:30:00","date_gmt":"2025-04-23T12:30:00","guid":{"rendered":"https:\/\/calmatters.org\/?p=463098"},"modified":"2025-04-22T15:55:34","modified_gmt":"2025-04-22T22:55:34","slug":"california-revolt-public-utilities-commission","status":"publish","type":"post","link":"https:\/\/calmatters.org\/_es\/commentary\/2025\/04\/california-revolt-public-utilities-commission\/","title":{"rendered":"Over a century later, California may need another revolt against its utility companies"},"content":{"rendered":"

Fed up with decades of powerful railroads corrupting the state board that was supposed to regulate them, California voters created the modern Public Utilities Commission in 1911. Now, some 114 years later, Californians have reached their limit with the cozy cronyism<\/a> between the commission and the private utilities<\/a> it is required to keep in check. <\/p>\n\n\n\n

That voter initiative in the early 20th century made the commission the primary protector of California\u2019s families and businesses against rapacious or unsafe electric and gas utilities. California statutes are filled with requirements that the utilities commission ensures that each cost to provide electricity and gas to customers is both necessary, as well \u201cjust and reasonably\u201d priced. <\/p>\n\n\n\n

As President Franklin D. Roosevelt put it during a 1932 campaign stop in Oregon<\/a>, state utility commissions have a \u201cdelegated authority and duty to act as the agent of the public themselves; that it is not a mere arbitrator as between the people and the public utilities, but was created for the purpose of seeing that the public utilities do two things: first, give adequate service; second, charge reasonable rates.\u201d<\/p>\n\n\n\n

\u201cThis means,\u201d he continued, \u201cwhen that duty is properly exercised, positive and active protection of the people against private greed!\u201d<\/p>\n\n\n\n

Today, Californians are again faced with what FDR called \u201ca systematic, subtle, deliberate and unprincipled campaign of misinformation, of propaganda, \u2026 lies and falsehoods\u201d \u2014 bought and paid for by private utilities, he remarked. <\/p>\n\n\n\n

More than a century later, California\u2019s utilities commission has lost its way. Over the past 10 years, each and every time California\u2019s private utility companies have wanted more of our money, the state\u2019s appointed commissioners<\/a> have willingly agreed. <\/p>\n\n\n\n

Between 2019 and 2023, average residential electricity rates increased 47%<\/a>, outpacing inflation, the Legislative Analyst\u2019s Office noted in a January report. Last year alone, the commission approved six increases for PG&E<\/a>, while it raked in record-breaking profits<\/a>.<\/p>\n\n\n\n

California\u2019s utilities commission is neglecting its primary responsibility. The companies claim that they know best what money and programs they need in order to provide gas and electric service to their customers. They ask us to trust them to spend customer money wisely, without suffocating their businesses with regulatory bureaucrats standing over their shoulders, second-guessing every dollar spent. The CPUC has increasingly obliged, allowing the utilities to choose for themselves what they will spend money on<\/a> or decide how much they will charge<\/a> for electric and gas service \u2014 gold-plating profit potential<\/a> without sticking to job one: safe and reliable service at a reasonable cost. <\/p>\n\n\n\n

Over and over again, the utilities ask and the commission gives them whatever they want. In the past three years the CPUC has created a pernicious practice of \u201cinterim\u201d rate increases, handing the utilities billions of dollars more without even having to list or provide any detail for the specific costs they presented for payment.\u00a0<\/p>\n\n\n\n

\"Las
Las oficinas de la Comisi\u00f3n de Servicios P\u00fablicos de California en el edificio Edmund G. Pat Brown en San Francisco el 28 de enero de 2022. Foto de Martin do Nascimento, CalMatters<\/figcaption><\/figure>\n\n\n\n

These interim rate decisions abrogate the CPUC\u2019s fundamental role to dig into the utilities\u2019 cost proposals, figure out what we actually should pay for safe service, and reject the expensive baubles and trinkets Californians shouldn\u2019t be on the hook for.\u00a0\u00a0<\/p>\n\n\n\n

The commission also ignored independent audits<\/a> of the utilities\u2019 wildfire spending. In 2021, California\u2019s big three utilities either could not account for or diverted $240 million, $700 million<\/a> and $1.5 billion in money the CPUC had already allowed the companies to collect for programs they proposed, planned and profited off. The audits urged commissioners to withhold money for additional wildfire prevention projects until the utilities could explain<\/a> what they spent the initial funding on.<\/p>\n\n\n\n

Leer m\u00e1s:<\/strong> Los californianos pagan miles de millones de d\u00f3lares por las iniciativas de prevenci\u00f3n de incendios forestales de las compa\u00f1\u00edas el\u00e9ctricas. \u00bfSon rentables?<\/a><\/p>\n\n\n\n

That didn\u2019t happen. Both PG&E and Southern California Edison were given the vast majority of what they asked for in new funding, without any true up or requirement<\/a> that they explain how they spent the previous tranche of public dollars.<\/p>\n\n\n\n

So it\u2019s not surprising that California families now face the second-highest utility rates<\/a> in the nation, and California businesses own the dubious prize of paying the highest business rates in the country.<\/p>\n\n\n\n

What\u2019s surprising is why, for so long, we have tolerated the commission\u2019s abdication of its central duty: To protect us while making sure that needed and reasonable investments are made to keep the lights on. When will we require our elected officials to stop the gravy train and make the state utilities commission do its job?<\/p>\n\n\n\t\n\t\t

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\n\t\t\t\t\tLeer m\u00e1s<\/span>\n\t\t\t\t<\/h2>\n\t\t\t\t\t\t\n\t
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\n\t\t\t\t\tEconom\u00eda<\/a>\t\t\t\t<\/div>\n\t\t\t\t

One reason your power bill is high: Baked-in profits that critics call excessive<\/a><\/h3>\t\t\t\t\t\t\t\t\t\t
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\n\t\t\t\t\tDivisi\u00f3n de California<\/a>\t\t\t\t<\/div>\n\t\t\t\t

Es la \u00fanica tienda en decenas de kil\u00f3metros. Las \u00faltimas subidas de tipos de PG&E podr\u00edan dejarla fuera del negocio<\/a><\/h3>\t\t\t\t\t\t\t\t\t\t
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