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February 19, 2025                                                                                       (916) 553-4093

Roundtable Provides Missing Data to Governor and Legislators on State’s Highest-in-the-Nation Electricity Rates

SACRAMENTO, CA – In an effort to ensure that Governor Gavin Newsom and legislative leaders have the complete data necessary to make informed decisions to address the state’s ongoing electricity cost crisis, the California Business Roundtable, using data from its sister organization the Center for Jobs and the Economy, sent a letter today to legislators and the governor outlining the policies that have significantly driven up the state’s electricity rates.

“We appreciate the governor and Legislature’s leadership in making this a priority issue,” said Rob Lapsley, president of the California Business Roundtable. “However, the CPUC and CEC failed to provide them with complete data. In order to come up with comprehensive policy solutions, there must be a comprehensive cost analysis. Despite the governor’s request, this is not what was provided by either entity. Our goal is to provide an analysis that helps provide a fuller picture into the key cost drivers as state legislators and the governor work to address this crisis head-on.”

The letter challenges recent claims from state agencies and highlights the overwhelming role of government-imposed costs on consumers’ highest-in-the-nation electricity rates.

According to the analysis provided in the letter, 40.0% of what Californians pay for electricity stems from state-imposed taxes, fees, and policy-driven costs. For middle-range customers who do not receive low-income assistance or solar subsidies, these costs climb to a staggering 42.4% of their monthly bill.

"While state regulators have attempted to deflect responsibility, the data makes it clear: California’s electricity rate crisis is a direct result of legislative mandates, regulatory fees, and costly programs that disproportionately burden consumers. For the average customer, these policies account for more than 40 percent of their monthly electricity bill,” Lapsley continued.

Key Findings from the Analysis:

• A Sharp Decline in Affordability: In 2010, California had the 9th lowest average residential electricity bill in the contiguous U.S. Today, it ranks 8th highest.

• $13.9 Billion Overpayment: Between November 2023 and November 2024, Californians paid $13.9 billion more for electricity than the national average—$17.4 billion more compared to residents of the lowest-cost state.

• State-Imposed Costs Drive Rates Up:
  • Wildfire mitigation costs add up to 15.6% to customer bills.
  • Net Energy Metering (NEM) cost shifts increase bills by 14% to 20% for non-solar customers.
  • Various regulatory programs and mandates tack on 12-15% more.
• Alternative Energy Mandates Add Billions: In 2023, the state’s Renewable Portfolio Standard (RPS) cost ratepayers $4.9 billion, while Cap-and-Trade charges accounted for another $1.4 billion.

"Instead of confronting the real cost drivers, state agencies have chosen to obscure the truth. California’s leadership is asking the right questions and must have all the data to get a clear understanding of how they can address state policies that have resulted in electricity rates that are unaffordable for millions of residents. We look forward to the governor and legislative leaders’ solutions to address the entirety of this crisis,” concluded Lapsley.

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