CA lawmaker introduces bill to cap electricity rate hikes and ban safety power shut offs

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CALIFORNIA – California State Senator Dr. Aisha Wahab (D-Silicon Valley) introduced, February 12, SB 332 that aims to improve affordability and safety with the state’s investor-owned utilities (IOU).

Ongoing wildfires in California have driven utility rate increases as companies seek to recover wildfire-related damages and liability costs.

The California Public Utilities Commission (CPUC), which regulates IOUs, recently approved Southern California Edison’s (SCE) plan to raise customer rates. The increase recovers over $1.6 billion in costs from the 2017 Thomas Fire, which was caused by its equipment.

The new bill caps residential IOU rate hikes at the Consumer Price Index. It also reduces ratepayer contributions to the Wildfire Fund, and increases IOUs responsibility for the fund.

“This bill gives power back to the people on rates, safety, and holds investor-owned utilities accountable,” said Wahab.

Ban on safety power shut offs for vulnerable ratepayers

In addition to rate hike caps, the proposed law would ban Public Safety Power Shutoffs (PSPS) for vulnerable ratepayers to protect their health and safety.

San Bernardino County supervisor Dawn Rowe expressed concerns over safety shut offs, during the cold winter months, that left mountain residents without electricity – sometimes for more than a week.

“The outages are exceptionally harsh on our seniors,” said Rowe.

Other provisions in the bill include:

  • Audit and replace old equipment: Check utility equipment every year and replace anything too old in high fire-risk areas.
  • Tie executive pay to safety: Make sure executive bonuses depend on meeting safety goals.
  • Underground power lines: Bury new power lines when replacing old ones.
  • Support emergency power: Set up hubs and infrastructure to provide power during emergencies.
  • Study utility options: Explore what kind of utility would work best for customers.

Needs Senate approval by June 2025

The bill needs to clear Senate committees and get Senate approval by June 6, 2025, before it moves to the Assembly.

The law would apply to SCE, Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E), Bear Valley Electric Service (BVES), Liberty Utility and PacifiCorp.

RELATED: CA approves Edison rate hike on customers to cover $1.6 Billion in claims from 2017 wildfire 

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