California Governor Gavin Newsom has launched an aggressive effort to tackle soaring electricity costs, signing an executive order that could reshape how utilities operate and charge customers across the state. The initiative, which comes as Californians grapple with electric bills that have outpaced inflation, directs state agencies to conduct a comprehensive review of ratepayer-funded programs and potentially return unused funds to customers. The order maintains California’s ambitious clean energy goals while targeting inefficiencies in everything from rooftop solar subsidies to wildfire safety programs. Under the directive, the California Public Utilities Commission (CPUC) has been tasked with immediate action to modify or eliminate underperforming programs, while the California Energy Commission must examine all ratepayer-funded initiatives under its purview. The move builds on recent relief efforts, including an average $71 credit that appeared on October electric bills through the state’s Climate Credit program. State legislative leaders have signaled strong support for the initiative, with Senate President pro Tempore Mike McGuire characterizing it as “an important start” and promising additional action in the months ahead. For California’s utilities and regulators, the order sets an aggressive January 2025 deadline to evaluate programs and propose reforms, reflecting the urgency of addressing what has become a critical pocketbook issue for the state’s residents. While the immediate impact on bills remains to be seen, the initiative represents California’s most comprehensive attempt yet to balance its clean energy ambitions with growing concerns about electricity affordability.
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