California Bill Aims to Shield Customers From Utility โขPolitical Spending
SACRAMENTO, CA โข- California lawmakers have passed โคlegislation restricting investor-owned utilities’ useโ of customer funds for political and lobbying activities, markingโ aโ significant step in a growingโ national trend to increase utility accountability. Senate โBill โ24,โ authored by Senator Jerry McNerney (D-Pleasanton), โคprohibits these utilities โขfrom using ratepayer money to oppose efforts to establish municipal โฃutilities and grants the Public Advocate’s Office at the California โPublic โขUtilities Commission (PUC) full investigatory authority over investor-owned utilities.
California’s investor-owned utilities actively opposed bothโ SB 24 and a related measure,โข Assemblyโ Bill 1488, which requiresโ utilities to discloseโ political andโค lobbying spending.โ Governor Newsom has until October 12 to sign โฃthe bills into law.
Theโฃ move comes as Americans grapple โwiht rising energy billsโฃ alongside broaderโ cost of living increases. According to data from โฃCanary Media, electricity prices are on the rise. In response, โat least 18 states have considered โlegislation in recent years to preventโค monopoly utilities fromโฃ passing on costs associated withโข political activities,โฃ lobbying,โฃ trade associations, and other corporate expenses to customers.
Several states have already enacted similar reforms.In 2023, Colorado, Connecticut, and Maine passedโค broad โutility accountability laws with provisions mirroring California’s efforts.Maryland followed earlier this year with the โNext Generation Energy Act, prohibiting charges for tradeโข association memberships and private plane expenses. New York โenacted a similar ban on ratepayer-funded membership dues in 2021, and โNew Hampshireโฃ excluded lobbying and political costs from ratesโฃ in 2019.
These laws are already yielding tangible โฃresults. Colorado’s Public Utilities Commission recently ordered Xcel Energy toโข removeโ over $775,000 in previously sought expenses from customer rates. A review by the Energy and Policy institute (EPI) of disclosuresโ in Connecticut revealed that utility companies had at least $9.7 million excludedโข from customer โrates โคdue to the 2023 law.