Newsom signs executive order to curb electricity costs for Californians

California Gov. Gavin Newsom (D) on Wednesday signed an executive order that aims to provide residents with some respite amid rising electricity prices.

That anticipated relief would be achieved through trimming down several state programs that could be inflating utility bills, while also assessing wildfire mitigation expenses, according to the governor’s office. 

"California's over four decades of work to advance appliance and building energy efficiency standards has kept electric bills lower on average in California than many other states," Newsom wrote in the order. "But Californians have seen their electric bills rise in recent years, outpacing the rate of inflation."

Among the key provisions of the executive order was a request for the California Public Utilities Commission (CPUC) to identify underperforming or underutilized programs whose costs to ratepayers might not be justified.

The order asked that the CPUC return any unused energy program funds back to private utility customers, in the form of credits on their bills.

Newsom also directed the California Air Resources Board to work with CPUC to identify ways to maximize the California Climate Credit — an initiative that applies credits to residents' electricity and gas bills twice a year through the state's cap-and-trade program, which requires large polluters to purchase greenhouse gas allowances and offsets. Credits distributed via this initiative have amounted to more than $12 billion in savings since 2014, according to the order.

In an effort to reduce electricity costs long-term, the order instructed both the CPUC and the California Energy Commission to assess ratepayer supported programs, while tasking the former with pursuing any relevant federal funding.

As far as wildfire mitigation investments are concerned, the governor directed the Office of Energy Infrastructure Safety and the CPUC to evaluate today's oversight practices for utility wildfire safety and ensure that these programs are cost-effective.

"We’re taking action to address rising electricity costs and save consumers money on their bills," Newsom said in a statement accompanying the order.

"California is proving that we can address affordability concerns as we continue our world-leading efforts to combat the climate crisis," the governor added.