Newsom’s PUC Commissioners Tilt At Energy Company Profits – Except That Is Not What Makes California Energy So Damned Expensive

Even CalMatters notes these new rules will barely be felt on bills, because California’s real price drivers are baked into Newsom’s policies.

(I know, I said I would do one thing a day on my Thanksgiving content schedule, but I really want to provide value for my paid subscribers, even as we approach Thanksgiving! Plus this is important stuff!)

⏱️ 4 min read

Window Dressing From The PUC, While Ignoring Real Cost Drivers

The headline out of Sacramento this week was loud enough. The California Public Utilities Commission — Governor Gavin Newsom’s hand-selected commissioners — voted to trim the allowed shareholder return for PG&E, Southern California Edison, and SDG&E.

That sounds tough. It generated no doubt generated applause from people who believe that “going after profits” must mean “help for consumers.” You know, the same people that think that utilities should all be nationalized anyways. Yet even CalMatters reported that the cut will be “hard to feel” on customer bills. For households already paying some of the highest electric rates in the country, that detail matters far more than the press release.

California now has the highest electricity rates in the continental United States, second only to the remote Hawaiian Islands. A tiny shave off investor returns will not change that reality. The commission is tilting at the wrong target. The real reason Californians are crushed by energy costs is the massive policy structure created by the state itself, and almost every one of those policies has been expanded or accelerated under Newsom.

---

The remainder of this column is just for our paid subscribers. Now is a great time to grab the free preview week and check it out! You also can then support this project, if you enjoy an independent voice calling balls and strikes on what is happening in California politics!

Here’s what is below!

• Why Newsom’s “profit crackdown” does not touch the real cost drivers

• The policies that quietly load billions onto your monthly bill

• How refinery shutdowns and mandates push prices even higher

• The wildfire-carbon truth Sacramento never acknowledges

• What it would mean if this model went national under a Newsom White House