California residents face soaring electricity rates, second only to Hawaii

By US Media GroupCalifornia residents are facing the highest electricity rates in the nation, second only to Hawaii, according to a new report from the Legislative Analyst’s Office (LAO). With rates surging at a pace that outstrips inflation, families in the Golden State are feeling the pinch on their monthly utility bills.The LAO report identifies key factors contributing to these soaring costs, including escalating wildfire-related expenses, aggressive state policies aimed at reducing greenhouse gas emissions, and variations in how utility companies operate.Economics professor James Bushnell from UC Davis weighed in, stating that the trend is no surprise. He explained how more residents turning to solar energy is forcing utility companies to spread costs across a shrinking customer base, necessitating higher charges to maintain critical infrastructure like transformers and power lines.“When utilities implement a fixed monthly charge, it allows them to lower the actual cost of electricity,” Bushnell noted, highlighting a complex pricing strategy.Currently, SMUD charges its customers a monthly fixed fee of around $24. Meanwhile, PG&E plans to introduce a similar fixed charge for most customers starting in 2026.Mark Toney, executive director of The Utility Reform Network, is sounding the alarm: “We need limits on rate increases, controls on overspending,...