"In November, the CPUC proposed a modest cut to utility profit rates - just 0.35% across the board. That proposal already fell far short of what's needed to ensure fair, reasonable energy bills for Californians. But this week, under pressure from utilities, the CPUC put out a revised decision that walks back even that modest decrease to just a 0.30% decrease for all investor-owned utilities."
"The commission can and must go much further. Mark Ellis, a former utility executive who worked for Sempra, the parent company of SoCal Gas and SD&E, has advocated for aligning utility profit margins with what the market actually supports. He argues that a fair return would be about 6% for most utilities under current economic conditions. If the CPUC aligned utility profit rates with that market reality, it could save $6.1 billion across all utilities statewide or $455 annually per household."
The California Public Utilities Commission will vote on allowed profits for PG&E over the next three years, a decision that will affect Bay Area electricity bills. PG&E posted $2.47 billion in profits in 2024 while one in five customers fall behind on bills. Electricity rates climbed 40% in three years and PG&E seeks an additional increase that could add $500 annually by 2030. The CPUC initially proposed a 0.35% cut to utility profit rates but revised that to a 0.30% decrease under utility pressure. That backtrack preserves higher bills and limits relief. Aligning returns to a market-based 6% could save $6.1 billion statewide or $455 per household.
Read at San Jose Spotlight
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