A New Law Can Cut Expenses that Shouldn’t Be in Californians’ Utility Bills
It's up to Governor Newsom to sign AB 1167 into law and give Californians the protections other states are already enjoying
If you’ve paid utility bills in California over the past several years, you’ve no doubt seen your bills go up – probably by a lot. What you may not know is that some of what you’re paying goes far beyond keeping your lights on, and you may be footing the bill for lobbying and corporate image polishing for monopoly utilities. Some utilities in California have been caught slipping exorbitant costs into customers’ bills – and it’s time California put a stop to it with AB 1167, the California Ratepayer Protection Act. The bill has been passed by the state legislature. Now, it needs Governor Newsom’s signature to become law.
Governor Gavin Newsom speaks onstage during the NYT Climate Forward panel at Climate Week 2025. (Photo by Yana Paskova/Getty Images for NYT)
The dirty secret of utilities abusing of customer funds in California came to light several years ago, when the Sacramento Bee reported that SoCalGas spent staggering sums lobbying against California cities’ climate and clean air policies, and then passed those costs on to its customers. It came to light that SoCalGas had spent years funding anti-climate campaigns to kill measures that would help Californians shift to healthier zero-emissions appliances, and tried to cover the cost of their $36 million anti-climate campaign through customers’ energy bills.
Likewise, PG&E was caught last year trying to use $6 million in wildfire funding – paid for by customers to address wildfires – to bankroll TV ads aimed at polishing the company’s tarnished image. It’s outrageous that they tried to slip customers the bill for that particular rehabilitation project. Keep in mind, PG&E’s rates have increased by 41% in the last 3 years, far outpacing inflation and fueling the affordability crisis in the Bay Area.
The facade of the Pacific Gas and Electric Company building in downtown San Francisco. (Smith Collection / Gado / Getty Images)
Like other states with regulated utility monopolies, California has made a bargain with these huge corporations: for-profit utilities get monopoly control over their market, and in return we get dependable energy and regulations to protect us.
Regulation of utility rates is supposed to mean that these corporations get paid well to build and maintain the networks that bring us energy. They make a good profit providing service, and in exchange, they’re not supposed to rip us off.
Right now, that bargain is being stretched to the breaking point.
California utility rates are not tracking a reasonable course in line with inflation: energy bills in California have surged at rates several times the pace of inflation, far outpacing the national average and deepening the affordability crisis.
As a result, over 2.4 million Californians are behind on their utility bills under the crushing weight of more than $1 billion in charges from for-profit utilities. A staggering one in five California households is behind on their energy bills.
And while Californians struggle to pay their gas and electric bills, these monopoly utilities report soaring profits. PG&E reaped record profits for the second year in a row in 2024, reaping $2.47 billion in profits while requesting approval for six rate hikes on its customers that year. And for another example, SoCal Edison hit $1.62 billion in profits for shareholders in 2024, after increasing rates by 9.8% last year.
This trend is a particular concern for older Californians, whose household incomes are over a third less than those between the ages of 25 and 64. Seniors are especially vulnerable, as they are more likely to live on a fixed income. That’s why consumer-focused groups like AARP California are calling AB 1167 a priority bill for older adults and their families.
Authored by California Assemblymember Marc Berman, the California Ratepayer Protection Act (AB 1167) can provide transparency and commonsense guardrails for how utilities spend customer money. It will hold for-profit utilities responsible when they fleece customers for expenses utility shareholders should pay for.
The bill has passed the legislature, but it needs Governor Newsom’s signature by October 12 to become law. With a stroke of Newsom’s pen, California can follow in the footsteps of other states like Connecticut, Colorado, and Maine, which are already saving their residents money in their utility bills after passing similar measures.
Monopoly utilities in California are getting rich. Their executives and shareholders are prospering. They don’t need Californians who struggle to cover groceries and rent every month to bankroll utilities’ lobbying, PR campaigns, or frivolities for major shareholders. It’s time for Governor Newsom to install some commonsense guardrails to protect Californians.
The California Regional Office fights for the rights of all to a healthy environment regardless of where in the state they live; we fight to protect the magnificent natural spaces and wildlife found in California; and we fight to transition California to a zero-emissions future where cars, trucks, buildings, and power plants run on clean energy, not fossil fuels.