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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.

Crime

Hero bystander disarms shooter in Australian terror attack

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The chaos that struck Australia on Sunday night produced one moment of astonishing courage: a Sydney shopkeeper, armed with nothing but instinct and grit, charged a gunman at Bondi Beach and wrestled the rifle out of his hands as terrified families ran for cover. Authorities say the act likely prevented even more deaths in what officials have already called an antisemitic terror attack that left 12 people dead and dozens wounded during a Hanukkah celebration along the water.

The hero has been identified as 43-year-old fruit shop owner Ahmed Al Ahmed, a father of two who happened to be nearby when gunfire erupted at the beachfront event “Hanukkah by the Sea,” which had drawn more than 200 people. Footage captured the moment he marched toward the shooter, grabbed hold of the rifle, and overpowered him in a brief, violent struggle. As the gunman hit the pavement, Al Ahmed momentarily pointed the weapon back at him but didn’t fire, instead placing it against a tree before another attacker opened up from a bridge above. He was hit in the hand and shoulder and is now recovering after emergency surgery.

A relative told Australia’s Channel Seven that Al Ahmed had never handled a gun in his life. “He’s a hero — he’s 100 percent a hero,” the family member said. New South Wales Premier Chris Minns echoed the praise, calling the scene “unbelievable,” adding, “A man walked up to someone who had just fired on the community and single-handedly disarmed him. Many people are alive tonight because of his bravery.”

Police say two shooters stepped out of a vehicle along Campbell Parade around 6:40 p.m. and began firing toward the beach. One gunman was killed, the other is in custody in critical condition. Detectives are also investigating whether a third attacker was involved, and bomb units swept the area after reports that an explosive device may have been planted beneath a pedestrian bridge. The toll is staggering: 12 dead, including one shooter, and at least 29 wounded — among them children and two police officers.

Prime Minister Anthony Albanese condemned what he called “a targeted attack on Jewish Australians on the first day of Hanukkah,” saying, “What should have been a night of joy and peace has been shattered by this horrifying evil attack.” Emergency crews flooded the beach as hundreds of panicked people sprinted away from the gunfire. Video shows one attacker firing down toward the sand from the bridge behind Bondi Park before being shot himself in a final standoff captured by drone footage. Both gunmen appeared to be carrying ammunition belts, with witnesses estimating up to 50 rounds were fired.

Australian police have cordoned off properties linked to the suspects and continue to canvass Bondi for additional threats. What remains clear is that Sunday’s attack was met with extraordinary acts of self-sacrifice, none more dramatic than a shopkeeper from Sutherland who walked into gunfire to stop further slaughter.

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Crime

Terror in Australia: 12 killed after gunmen open fire on Hanukkah celebration

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One of the suspected gunmen of the Bondi Beach massacre shooting in Australia has been identified as Naveed Akram

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What was supposed to be a peaceful Sunday evening celebration of Hanukkah on one of the world’s most famous beaches instead descended into chaos and bloodshed, as two attackers opened fire on crowds gathered at Sydney’s Bondi Beach, killing 12 people — including one of the gunmen — and injuring at least 11 others.

The violence erupted shortly after 5 p.m. local time, just as more than a thousand people were gathering for “Hanukkah by the Sea,” an annual event held near a playground at the Bondi foreshore. According to Australian outlets, the shooting began as families were lighting candles and singing, sending parents scrambling to shield children and worshippers diving for cover along the promenade.

New South Wales Premier Chris Minns confirmed late Sunday that one attacker was killed at the scene and a second was arrested. He said the evidence already points unmistakably toward an anti-Jewish terror attack. “What should have been a night of peace and joy was shattered by a horrifying, evil attack,” Minns told reporters, noting investigators believe the plot was “designed to target Sydney’s Jewish community.”

NSW Police Commissioner Mal Lanyon said well over a thousand people were present when the shooting started, including two state police officers who were among those struck by gunfire, according to ABC News. Police also located what appeared to be an improvised explosive device in the vicinity shortly after the initial gunfire. Bomb technicians neutralized the device while officers locked down the area and urged residents to shelter in place.

Around 9 p.m., with ambulances and tactical units pouring in, authorities described the unfolding chaos as a “developing incident” and warned anyone nearby to stay indoors. Multiple victims were treated on the sand and the surrounding walkways before being rushed to hospitals across Sydney.

As investigators piece together the attackers’ movements and motive, officials say the toll could have been even worse given the size of the crowd and the presence of children throughout the event. What remains is a shaken city, a grieving Jewish community, and a country once again confronting the threat of political and religious extremism on its own soil.

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