Newsom Signs Executive Order Targeting California’s High Electricity Prices

California Gov. Gavin Newsom attends a press conference at Raleigh Studios in Los Angeles on Oct. 27, 2024. Mario Tama/Getty Images

California Gov. Gavin Newsom signed an executive order on Oct. 30 aimed at reducing electricity prices for Californians, which are the second-highest in the country, and directed state agencies to find ways to lower costs.

Newsom’s office said in a statement that the executive action “encourages electric bill relief” while also maintaining the state’s commitment to achieving carbon neutrality and “100% clean electricity” by 2045.

“We’re taking action to address rising electricity costs and save consumers money on their bills,” Newsom said. “California is proving that we can address affordability concerns as we continue our world-leading efforts to combat the climate crisis.”

The governor’s order directs the California Public Utilities Commission (CPUC) to identify “underperforming” energy programs and return any unused program funds to customers via credits on their bills.

It also asks the CPUC to evaluate electric ratepayer-supported programs and make recommendations on additional ways to save consumers money, while directing the commission to pursue federal funding options to help lower electricity bills for Californians.

Newsom’s order directs the California Air Resources Board to work with the CPUC to determine ways to maximize the California Climate Credit. Californians typically receive this credit, funded by the state’s Cap-and-Trade program, twice a year via their electricity and gas bills.

The order, issued just days before the Nov. 5 election, does not state how much Californians might save on their bills each month once the measures are enacted.

It also does not provide a timeline as to when the cost-saving efforts will be implemented.

California now has the second-highest residential electricity rates in the country after Hawaii, with customers paying an average of 32.56 ¢/kWh (kilowatt hour) as of July, according to online energy marketplace Choose Energy. That marks a 10.8 percent increase year on year.

That contrasts with states such as Louisiana, where customers paid the lowest residential electricity rates in the nation at 11.50 cents/kWh as of July.

The order also calls for “smarter wildfire mitigation investments,” specifically a review of how cost-effective utility wildfire safety oversight practices are.

Newsom’s order was welcomed by Democrats, including Senate President Pro Tempore Mike McGuire, who acknowledged that rising electricity costs are impacting Californians and their quality of life.

“The state, including its regulatory agencies, needs to buckle down and blunt the expanding fiscal impacts on ratepayers,” McGuire said. “This is an important start by Governor Newsom, and the Senate plans to double down on this progress in the months ahead.”

Environmental and consumer advocacy groups including California Public Interest Research Group (CALPIRG) said they are concerned the executive order will result in state agencies cutting critical clean energy programs.

“The real drivers of high utility bills are wasteful utility spending and excessive profits,” CALPIRG State Director Jenn Engstrom said in an Oct.30 statement.

Newsom’s executive order “does little to hold utilities accountable for wasting ratepayers’ money. Ensuring utilities don’t overspend on wildfire mitigation is a good step, but way more needs to be done to rein in these companies’ profligate ways.”

The Epoch Times contacted Newsom’s office for further comment but did not hear back by publication time.