California electric bills have essentially doubled over the past decade (2024)

California electric bills have essentially doubled over the past decade (1)

We start to twitch when family members run the dishwasher or throw on a load of laundry at night. At night, after the sun has set; that’s when our time-of-use electricity rates peak!

With temperatures exceeding 100 degrees in much of Southern California, and air conditioners working overtime, the pain of the monthly electric bill can be staggering. Over just the past three years rates rates have skyrocketed 51% for customers of Southern California Edison and Pacific Gas & Electric, while they’ve jumped 20% for customers of San Diego Gas & Electric, according to a new analysis by the Public Advocate (the branch of the California Public Utilities Commission that’s supposed to represent the little guy).

“The bill volatility that comes with these heat waves will be pretty eye-popping. And we’re concerned about that,” said Mike Campbell, Assistant Deputy Director of Energy for the Public Advocates Office.

California electric bills have essentially doubled over the past decade (2)

It’s worse if you gaze back over a full decade. Electric bills have essentially doubled. Edison’s rates are up 90% over 10 years; SDG&E’s are up 82%; and PG&E’s are up, gulp, 110%.

Incomes haven’t doubled over the decade for most of us, so it hurts. Nearly one in five California households is behind in paying the electric bill — more than 2.1 million people, statewide, owing an average of $747 each.

Why are rates so high? The Advocate’s analysis lists three main drivers: The costs of wildfire mitigation; investment in transmission and distribution systems; and subsidies to rooftop solar owners.

In May, the average cost per kilowatt in California was 29.49 cents, the third highest in the nation, according to data from EnergyBot.

California electric bills have essentially doubled over the past decade (3)

Now, that’s up to 34.26 cents, second only to Hawaii’s 45.19 cents.

Edison spokesman Jeff Monford said the company recognizes the need to keep customers’ monthly bills manageable, and is taking action to keep rates as low as it can and ensure customers can get bill assistance if needed. Edison has some free programs it says can help customers save money and energy (details below).

As the Public Advocate pointed out, investments in wildfire prevention and strengthening the grid were big drivers. Since 2018, Edison’s investments have reduced the risk of losses from catastrophic wildfires by as much as 88%, Monford said.

Ouch

It’s important to point out here that electric companies don’t make money by selling electricity. Instead, they make money from the CPUC-set rate of the return on their capital investments; that’s their profit. So there’s a built-in incentive for utilities to spend more money on capital investments than they might need to.

Consider the bear of wildfire mitigation, a prime driver. The quicker and less expensive way for an electric company to harden its system is to use above-ground, insulated poles and wires rather than digging down in the dirt and burying lines. The safety profile is essentially the same, experts say.

California electric bills have essentially doubled over the past decade (4)

But utilities make more money choosing expensive capital projects over cheaper ones. Edison, to its credit, decided to go the insulated overhead route as much as possible, costing some $800,000 a mile. PG&E, however, decided to bury many lines — slower and not measurably safer — costing some $4 million a mile, The Utility Reform Network’s Mark Toney recently told us.

The fault lies squarely with the CPUC, Toney said — the “overly generous” regulator responsible for reviewing and approving increases.

Campbell, of the Public Advocates Office, said the group is working on a raft of reforms, but it will take both Legislative and CPUC action to get it all done.

We should remove irrational incentives for the utilities. Perhaps the state could issue debt to fund major infrastructure projects, tax-free?

California electric bills have essentially doubled over the past decade (5)

We should stop spending money on programs that aren’t cost-effective (many energy efficiency programs sound nice but don’t really do much).

Important policy priorities — say, reducing bills for low-income people and building out electric vehicle charging stations — should be paid for through the state’s general fund or with federal funds already committed to those projects, not by ratepayers.

“When you’re in a hole,” Campbell said, “stop digging.”

The CPUC’s recent decision to separate fixed charges for grid maintenance from the price of electricity itself won’t help until next summer, in Southern California at least, Campbell said. Besides, the fixed charge is not responsible for the bills folks face this summer. Instead, he explained, “it’s hot, and your rate did go up from last year.”

The CPUC’s recent decision to reduce subsidies for new rooftop solar systems — rather than from the vast army of older systems — continues a cost-shift of some $8 billion this year, shouldered by customers who don’t have solar.

California electric bills have essentially doubled over the past decade (6)

“We’ve been saying there’s a rate crisis for years, and something changed in the last 12 months: Legislators are saying ‘We have a rate crisis,’ said Campbell.“It’s going to take new thinking, not, ‘How do we tweak around the edges?’ The amount the utilities collect has to be reduced.”

TURN’s Toney would agree. He’d love to see utilities face a cap in how much they can seek in increases, and new rules that would require utilities to use the least expensive solution when possible. He’d also like to see shareholders pay half of the cost of overruns when utilities overspend. That way it wouldn’t all fall on ratepayers.

“That would reduce costs immediately!” Toney told us. “The sad truth is, companies are more accountable to their shareholders than they are to their ratepayers.”

Risk reduction

Monford said Edison’s investments in transmission and distribution are meant to improve grid reliability and meet customer needs today and in the future. They’re also aimed at ensuring that the grid is ready to support widespread electrification and decarbonization.

Edison has installed some 5,900 miles of covered conductor in areas that are at a high risk for fires, and it expects to add 8,300 miles by the end of 2028. It also plans to complete about 100 miles of undergrounding by 2025 in especially high risk areas, and up to a total of 600 miles by the end of 2028.

Solar costs shifts increased bills for customers without solar by an average of $18 per month, he said (the overall cost shift for Edison customers was $1.8 billion in 2023). The fixed charge, which Edison will launch in late 2025, will provide bill relief for many, especially low-income and customers in hot inland zones (that’s expected to reduce the overall cost shift by about $270 million each year).

California electric bills have essentially doubled over the past decade (7)

There are free programs, with no income limit, to help customers save energy and money, Monford said.

For folks with central A/C who rent or own a single family home (including manufactured and mobile homes), the Residential Direct Install Program and the Energy Savings Assistance Program can provide things like smart thermostats, smart fan controllers (to push cooled air into the home after the A/C unit has finished cycling), attic insulation and ductwork, duct testing and sealing, as well as testing for refrigerant leaks, replenishing refrigerant and repairing leaks where possible.

These optimize air conditioning operation, efficiency and comfort, Monford said. To schedule a free consultation, call (800) 818-4298 or visit https://bit.ly/3Yd8kRQ.

Customers who meet income thresholds may also qualify for the Energy Savings Assistance program, which provides energy-efficient appliances at no or minimal charge. For more information on that, see https://bit.ly/3SpS0cB.

California electric bills have essentially doubled over the past decade (8)

Every little bit helps. Meantime, if you want change at the top, drop a line to your state legislators (find them at https://www.sos.ca.gov/elections/who-are-my-representatives) and the CPUC https://www.cpuc.ca.gov/about-cpuc/contacting-the-puc). They say we get the government we deserve.

Originally Published:

California electric bills have essentially doubled over the past decade (2024)

FAQs

California electric bills have essentially doubled over the past decade? ›

Electric bills have essentially doubled. Edison's rates are up 90% over 10 years; SDG&E's are up 82%; and PG&E's are up, gulp, 110%. Incomes haven't doubled over the decade for most of us, so it hurts.

Why is electricity so much more expensive in California? ›

The reasons for these high rates of increase are numerous. Two of the most important are major upticks in the cost of natural gas used by power plants and rising costs associated with the upkeep of the electric grid.

How much has electricity gone up in California? ›

So why are California's electric bills so high? Electric Rates increased 78% between 2013-2021, 16% in 2022, and 14% in 2023!

How much is the average electric bill in California? ›

On average, California residents spend about $293 per month on electricity. That adds up to $3,516 per year.

Is the high cost of California electricity increasing poverty? ›

Key Takeaways. With the highest effective poverty rate in America and some of the highest electricity costs, Newsom's top priority should be to shift to energy affordability. Over the past 10 years, PG&E customers have seen rates increase 127%, disproportionately affecting poor people, small businesses, and farmers.

Which US state has the most expensive electricity? ›

Hawaii has the highest electricity costs in the US, with an average rate of 44.28 cents/kWh. Most of the states with expensive electricity are located in the northeast - with the exception of Alaska, California and Hawaii.

Why is my southern California electric bill so high? ›

Some of the most common causes of higher-than-expected electric bills are weather-related. In hot weather, your electric bill may reflect: Higher-than average air conditioning use.

What runs your electric bill up the most? ›

Which home appliances use the most electricity?
  1. Heating and cooling: 45-50% The largest electricity consumer in the average household is your heating and cooling appliance. ...
  2. Water heater: 12% ...
  3. Lighting: 9-12% ...
  4. Refrigerator: 8% ...
  5. Washer and dryer: 5% ...
  6. Electric oven: 3% ...
  7. Dishwasher: 2% ...
  8. TV and cable box: 2%
Dec 20, 2022

How much should my PG&E bill be? ›

1, monthly electricity bills for the typical PG&E electricity customer reached an average of roughly $222 a month. That's 28.4% higher than the monthly electricity bill of $172.84 in January 2023. Gas bills now average $72 a month.

What is the average cost of a house per month in California? ›

Monthly Payments for a Typical California Home Are Over $5,500. Monthly home payments assume a 30-year mortgage, 10 percent down payment, 1.1 percent property tax rate, 0.38 percent homeowners' insurance rate, and 0.558 percent private mortgage insurance rate.

What is the new law for electricity bill in California? ›

So-called fixed charges are a mainstay of electric billing across most of the country, with an average fee of roughly $11. The new California charge will be $24 for most customers, but lower income households, who already qualify for discounted electric rates, will see fees of either $6 or $12.

What is the problem with California energy? ›

Indeed, the electricity shortages and the specter of blackouts California faced in 2022 bear a striking resemblance to the California energy crisis experienced in the wake of partial energy deregulation in 1996 and the unforced errors in its implementation—namely, mandating price caps and not anticipating supply ...

Are California utility bills based on income? ›

California regulator takes income-based electric bills off the table. CPUC's new proposal ditches the controversial plan to charge ratepayers based on their income and instead puts forth fixed monthly charges.

Why is everything so expensive in California right now? ›

Housing, transportation, food, utilities and taxes are the biggest factors driving the state's higher cost of living. Lack of affordable housing is one of the state's most pressing challenges.

What is the new law for electricity in California? ›

So-called fixed charges are a mainstay of electric billing across most of the country, with an average fee of roughly $11. The new California charge will be $24 for most customers, but lower income households, who already qualify for discounted electric rates, will see fees of either $6 or $12.

How does California make a majority of its electricity? ›

Natural gas-fired power plants typically account for almost one-half of in-state electricity generation. California is one of the largest hydroelectric power producers in the United States, and with adequate rainfall, hydroelectric power typically accounts for close to one-fifth of State electricity generation.

Why has my PGE bill doubled? ›

Why did PG&E increase rates? PG&E has announced that it is making several changes to ensure the safety and reliability of its services including big investments in undergrounding electric lines to decrease wildfire risk. These upgrades and recent inflation are the main reasons PG&E increased their rates this year.

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