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California’s soaring electricity rates strain consumers, impact climate goals

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While the greenhouse gas reduction programs that raise electricity rates are part of California’s climate goals, the increased prices actually discourage individuals from switching away from using fossil fuels impacting California’s ambitious climate goals.

California has completed yet another year with some of the highest electricity rates in the country – almost double the national average. The state’s electricity rates have been increasing rapidly, outpacing inflation in recent years by approximately 47% from 2019 to 2023. This is due largely to the high rates charged by the state’s three large investor-owned utilities (IOUs).

According to a report published by the California Legislative Analyst Office, the factors driving rate increases are wildfire-related costs, greenhouse gas reduction mandates, and policies and differences in utility operational structures and services territories. Ratepayers bear the brunt of these costs with those who earn lower incomes and live in hotter areas of the state the most severely affected.

The report points out that while the greenhouse gas reduction programs that raise electricity rates are part of California’s climate goals, the increased prices actually discourage individuals from switching away from using fossil fuels impacting California’s ambitious climate goals.

These programs include the Renewable Portfolio Standard (RPS), which requires utilities to provide a percentage of retail electricity sales from renewable sources, raising costs for ratepayers. Additionally, SB 350 directs the CPUC to authorize ratepayer-funded energy efficiency programs to meet California’s goal of doubling energy efficiency savings by 2030.

“While many other states operate ratepayer-supported energy efficiency programs, on average, we estimate that Californians contribute a notably greater share of their rates to such programs than is typical across the country,” the report notes.

Electricity rates pay for numerous costs related to the construction, maintenance and operation of electricity systems including the generation, transmission and distribution components. However, these rates also pay for costs unrelated to servicing electricity.

“Most notably, the state and IOUs use revenue generated from electricity rates to support various state-mandated public purpose programs,” the report says. “These programs have goals such as increasing energy efficiency, expediting adoption of renewable energy sources, supporting the transition to zero-emission vehicles (ZEVs), and providing lower-income customers with financial assistance.”

The largest public purpose program is the California Alternate Rates for Energy (CARE), which provides discounts for lower-income customers. However, the report notes that while CARE benefits certain customers, it shifts the costs onto other slightly higher-income customers and that the majority of Californians spend a larger portion of their income on electricity compared to other states.

 “According to data from the federal Bureau of Labor Statistics, California households in the lowest quintile of the income distribution typically spend about 6 percent of their before-tax incomes on electricity, compared to less than 1 percent for the highest-income quintile of households,” reads the report. “Notably, high electricity rates also can impose burdens on moderate-income earners, since they also pay a larger share of their household incomes toward electricity than their higher-income counterparts but typically are not able to qualify for bill assistance programs.”

Electricity bills also reflect other state and local tax charges including utility taxes that are used to support programs such as fire response and parks in addition to the state-assessed charge on electricity use that is put into the Energy Resources Programs Account (ERPA). This account is used to pay for energy programs and planning activities.

While many of the funds recovered through electricity rates are fixed costs for programs, these costs increased in 2022 following the repeal of a state law that limited fixed charges at $10, requiring the California Public Utilities Commission (CPUC) to authorize fixed charges that vary by income. These come out to be around $24 per month for non-CARE customers and $6 per month for CARE customers.

Wildfire related costs have also been increasing. Before 2019, wildfire costs included in electricity rates charged by IOUs were negligible, but now it has grown between 7% and 13% of typical non-CARE customers. Reasons for this increase include California’s high wildfire risk and the state’s liability standard holding IOUs responsible for all costs associated with utility-caused wildfires.

“The magnitude of the damages and risks from utility-sparked wildfires have increased substantially in recent years,” reads the report. “Correspondingly, IOUs have spent unprecedented amounts in recent years on wildfire mitigation-related activities to try to reduce the likelihood of future utility-caused wildfires, with the associated costs often passed along to ratepayers. Furthermore, California IOUs and their ratepayers pay for insurance against future wildfires, including contributing to the California Wildfire Fund.”

According to the report, electricity use and rates for Claifornians are only expected to increase and the legislature will have to determine how to tackle the statewide climate goals while reducing the burden on ratepayers.

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Crime

Suspected ambush leaves two firefighters dead in Idaho

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Quick Hit:

Two firefighters were killed and another wounded Sunday after a gunman opened fire on first responders tackling a blaze near Coeur d’Alene, Idaho. The shooter was later found dead, and authorities believe the fire may have been set to lure crews into an ambush.

Key Details:

  • The ambush began around 2 p.m. local time as fire crews arrived at a brush fire and were met with sniper-style gunfire from a wooded area.
  • SWAT teams located the deceased suspect roughly five hours later, with a weapon nearby. His identity has not yet been released.
  • The Kootenai County Sheriff said the ongoing fire could not be addressed during the gunfight, calling the attack a “heinous direct assault” on first responders.

Diving Deeper:

A deadly ambush on Sunday afternoon left two Idaho firefighters dead and a third injured after they were shot while attempting to contain a brush fire on Canfield Mountain. The surprise attack reportedly began around 2 p.m., when bullets suddenly rained down on emergency crews from hidden positions in the wooded terrain near Coeur d’Alene.

Authorities now believe the blaze may have been deliberately set as bait. Kootenai County Sheriff Bob Norris described the situation as “an active sniper attack,” saying the scene quickly escalated into chaos with gunfire coming from multiple directions.

“We don’t know if there’s one, two, three or four [shooters],” Norris said in an early evening press conference. “I’m hoping that someone has a clear shot and is able to neutralize [the suspect], because they’re not showing any signs of surrendering.”

Roughly five hours after the first shots were fired, SWAT officers found a body next to a firearm along the Canfield Mountain Trail. Authorities have not confirmed whether the individual was the sole assailant, nor have they publicly identified the person. The FBI, along with state and local agencies, had been deployed to the scene to assist with the operation.

The two firefighters who died have not yet been named. The third, who sustained a gunshot wound, was transported to Kootenai Health and remains hospitalized. His current condition is unknown.

The firefight effectively halted efforts to contain the brush fire, which remained active late into Sunday. “It’s going to keep burning. We can’t put any resources on it right now,” Norris said during the standoff. Shelter-in-place orders were issued for the surrounding area, including the popular Canfield Mountain Trailhead, but those restrictions were lifted after the suspect was found dead.

Idaho Governor Brad Little reacted to the tragedy on social media, calling the ambush “a heinous direct assault on our brave firefighters.” He added, “Teresa and I are heartbroken. I ask all Idahoans to pray for them and their families as we wait to learn more.”

Federal and local officials are continuing to investigate the incident, including the origins of the fire and whether additional suspects may have been involved.

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International

President Xi Skips Key Summit, Adding Fuel to Ebbing Power Theories

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First-ever BRICS absence deepens questions over internal CCP dissent

Chinese President Xi Jinping will skip the upcoming BRICS summit in Rio de Janeiro, the first time he has ever missed the gathering of major emerging powers—a development that will add to speculation that Xi’s power among elite Chinese Communist circles is being challenged by a faction publicly humiliated by Xi in 2022.

Beijing cited a “scheduling conflict,” according to multiple officials involved in summit planning, South China Morning Post has reported. But Xi’s absence—coming amid intensifying economic pressures and purges within the People’s Liberation Army—has triggered speculation that deeper internal political currents may be at play.

China’s delegation to Brazil will instead be led by Premier Li Qiang, marking the second time in under a year that Xi has delegated such a high-level multilateral forum. Observers note that Li also stood in for Xi at the G20 summit in India in 2023.

The BRICS platform is a key pillar of China’s push for a multipolar world, challenging the Western-led order.

The official explanation for Xi’s absence—that he has already met Brazilian President Luiz Inácio Lula da Silva twice in the past year—has done little to quell questions about the Chinese leader’s standing at home. Those concerns are being amplified by mounting signs of internal dissent within the Chinese Communist Party, as China’s economy falters and long-suppressed questions about Xi’s hardline tactics against the West, including mounting threats to invade Taiwan, gain traction with the reemergence of a sidelined political faction.

As detailed in a recent Jamestown Foundation analysis, Xi Jinping may be facing renewed political friction from within the Party’s elite ranks—specifically, the so-called Tuanpai, or Youth League faction, aligned with former president Hu Jintao and premier Wen Jiabao.

The history of the Xi-Hu rift is punctuated by a theatrical public humiliation: in October 2022, Hu Jintao was forcibly escorted from the closing session of the CCP’s 20th Party Congress. The moment was captured on live television and interpreted globally as Xi’s final symbolic purge of Hu’s faction. Hu, seated next to Xi Jinping, appeared to reach for documents on the table. Li Zhanshu, seated to Hu’s left, took the papers and placed them out of reach. Xi signaled, and two security staff approached Hu, gently lifting him from his seat and escorting him out. Hu appeared reluctant, attempting to retrieve the documents and briefly exchanging words with Xi. He also patted Premier Li Keqiang, a key figure in the Youth League faction, on the shoulder before leaving. The stunning incident lasted about 90 seconds.

Li died less than a year later, in October 2023, reportedly from a sudden heart attack while swimming in Shanghai. His unexpected death at age 68—soon after leaving office—was officially described as natural, but has fueled speculation among Chinese observers and dissidents, with some questioning the timing and circumstances.

Evidence of the Hu faction’s comeback emerged from the secretive Party retreat in Beidaihe in August 2023. According to Nikkei Asia, and later corroborated by additional sources, three senior Communist Party elders delivered pointed criticisms of Xi Jinping’s policies behind closed doors. All three had ties to the former Hu-Wen administration. Their intervention reportedly provoked visible frustration from Xi, according to individuals familiar with the meeting.

Hu pats Premier Li Keqiang, a key figure in the Youth League faction, on the shoulder, while being forcibly removed in a public purge. Li died in a swimming accident one year later.

In a possible gesture of appeasement—or vulnerability—Xi has more recently echoed terminology traditionally associated with Hu’s tenure. He invoked the phrase “scientific, democratic, and law-based policymaking,” a hallmark of Hu’s governing lexicon, signaling either rhetorical triangulation or a forced concession to resurgent internal pressures.

The most striking signal of renewed factional maneuvering is the quiet reemergence of Hu Chunhua, according to Jamestown’s analysis, the protégé of Hu Jintao and Wen Jiabao once viewed as a potential future president. Xi sidelined Hu Chunhua in 2022 by excluding him from the Politburo—an unprecedented break from succession norms. But in recent months, Hu has been deployed in high-level diplomatic missions typically reserved for top officials.

In April 2024, Hu led a Chinese People’s Political Consultative Conference delegation to West Africa. The next month, he appeared at the Vietnamese Embassy to pay respects following the death of Vietnam’s former president—a role traditionally carried out by a Politburo-level official.

Xi’s sweeping anti-corruption purges in 2023—many of which targeted military figures linked to the Central Military Commission—have depleted some of his institutional backing. The Jamestown Foundation notes that these purges, rather than consolidating Xi’s grip, may have created new political openings for rivals.

Taken together with broader indicators of factional turbulence, Xi’s BRICS no-show feeds a growing intelligence narrative—shared by The Bureau’s expert sources in the United States and Taiwan—that China’s paramount leader, having consolidated power through sweeping purges, is now encountering mounting signs of blowback from within the Party.

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