This is the Letter I Wrote to the California Public Utilities Commission

Californians’ utility bills are already too high – we cannot allow another increase.

Today, I sent a letter to the California Public Utilities Commission. I told them that utility companies and their lobbyists have too much influence over politicians in Sacramento. And I told them that we need to finally start holding these companies accountable and end the utility monopoly that is driving up prices in California.

Here’s the full text of the letter I sent to them. If you agree, then join the campaign that’s going to lower electric bills by 25% by ending utility monopolies.

Thanks for standing with us.

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President Reynolds and Commissioners:

I am urging the Public Utilities Commission to take three steps:

#1: Reject the return on equity proposed by the investor-owned utilities – and significantly reduce the alternative rates under consideration by the PUC. Utilities are entitled to a return on equity appropriate to their risk. By my estimate, that is well below what they are asking for – which is a giveaway to the stockholders of PG&E, Southern California Edison, and San Diego Gas & Electric to the tune of hundreds of millions of dollars per year. It’s no wonder that these companies, which are regulated utilities that derive their value from what they own, nonetheless are trading well above book value. While the appropriate cost of capital is always subject to debate, there is no case that I see for ongoing double-digit returns.

#2: Crank up oversight of utilities so that they do not prioritize expensive infrastructure projects above efficiencies. Because of the high rate of return that utilities earn on their equity investments, they have few inhibitions on expensive projects. Often the most cost-effective solutions, such as reconductoring wires so that they can carry more electricity and insulating them to reduce fire risk, are shelved in favor of more expensive options that find their way onto ratepayer bills. If the PUC does not step up oversight on whether projects are justified – or if alternatives can deliver safe and reliable power at less cost – ratepayers will continue to suffer.

#3: Hold utilities accountable for connecting solar and storage to the grid – and hold yourself accountable for holding them accountable. As a recent letter from 18 legislators pointed out, in the last 5 years utilities have missed timelines for approving new interconnections to the grid as much as 73 percent of the time. That is unacceptable and may kill our ability to hit clean energy targets. Investments in solar and storage can deliver real savings powered by clean energy. But to achieve that, the PUC must enforce state-mandated timelines for interconnection.

When it comes to energy prices, we need not throw up our hands and prioritize the interests of utilities and their advocates above the rest of the state. There is a better way. Restoring trust starts with these three steps. For Californians buckling under a 34-percent inflation-adjusted increase in electricity prices over the last six years, these changes cannot come soon enough.

Sincerely,
Tom Steyer