[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6180736,"mediaKeyId","5116752-c975178e7c11d5c6cd9537b561e2726d","parentId",5116752,"title","Publicly owned utilities and CCAs say governance, financing explain lower rates; CalCCA details $19B tax‑exempt bond program","audioSeconds",1765,"startMs",3875000,"endMs",5640000,"viewUrl","/Search/View?dp=1&key=5116752-c975178e7c11d5c6cd9537b561e2726d&start=3875&end=5640","thumbnailUrl","https://assets.pipeline.soar.com/5116752-c975178e7c11d5c6cd9537b561e2726d/thumbnail_3875000.jpg","articleUrl","/articles/6180736/California/Publicly-owned-utilities-and-CCAs-say-governance-financing-explain-lower-rates-CalCCA-details-19B-taxexempt-bond-program","mediaUrl","https://secure.pipeline.soar.com/6180736-0ef2cea72230f56903c9614bbe769a79/orig.mp4?Expires=1771179450&Signature=L7lfQm2h90ZEa0PM-XwGfzaMydPtUjqr3FWqPzvPZHoI7mZyvyDYjZIIItfoPFj5TJEXZnXOsm~rUOAIJbAz5xkVu7M5ajbFkY~6gW5RcXWp52HSEvtYLfUZjbqZSIi~V~GmHTCQKbb4T80RVzFryhABwgbP0jqEXGFVHEkUvZ7-lSoHiTSAilU8Rg53coqmj5MiAgcyuOhn2EC3tEzBogISdJ8itlc~oR6h5i6nee9Y~IVOxpBjICqJk1C~e5K23e8quFr0poys5XnSf1WGwcPQajDmQgWNrb2q7ZvTeBKqVGLIZS-~SeS0cR5rWuY9UPVWhttgPee1H5ji-ZVI4g__&Key-Pair-Id=KUT5TJCACFTXG","author","Little Hoover Commission","date","2025-07-01T16:17:10Z","article","Derek Dolphy, director of energy for the California Municipal Utilities Association, told the commission that public power utilities are locally governed, not‑for‑profit agencies that directly answer to elected officials. He explained the four main POU types — municipal departments (for example, Los Angeles Department of Water and Power), municipal utility districts (SMUD), public utility districts and irrigation districts — and said there are 49 POUs serving about 25% of the state’s load.

Dolphy said POUs typically access tax‑exempt bonds and can pool resources through joint action agencies such as the Southern California Public Power Authority (SCPPA) and the Northern California Power Agency (NCPA). He argued those financing structures, local accountability and differences in what regulatory programs apply contribute to lower retail rates in many public power service territories.

Beth Vaughn, chief executive officer of the California Community Choice Association, explained community choice aggregators’ (CCAs) role: CCAs are local government entities that take charge of the generation component of the customer bill within investor‑owned utility (IOU) service territories; IOUs keep responsibility for transmission, distribution and billing. Vaughn described CCAs as public entities that must meet CPUC procurement and resource requirements but are governed locally and can pursue joint procurement and financing.

Vaughn highlighted a financing tool created by a group of CCAs: the California Community Choice Financing Authority, a joint powers authority that issues tax‑exempt prepayment revenue bonds to finance power purchase agreements. “In just 4 years, the finance authority has issued $19,000,000,000 in tax‑exempt prepayment revenue bonds,” Vaughn said, and the authority’s transactions have produced accelerated procurement savings for member CCAs. Vaughn and other witnesses said those financings can lower the cost of PPAs by double‑digit percentages for the participating CCAs and produce multi‑hundred‑million dollar savings over time.

Commissioners asked whether POUs and CCAs still face affordability issues despite lower baseline rates and pressed on differences in oversight: Commissioner Jose Hernandez noted that POUs are subject to POU code provisions and that CCAs are required to provide low‑income programs. Witnesses said all retail models face procurement and deliverability challenges and that differing regulatory mandates — and how those mandates are funded — are a major driver of interjurisdictional rate differences.

The CCMUA and CalCCA testimonies framed the rate difference as the product of governance, financing options and which programs are embedded in ratepayer charges versus other funding sources.","mediaType","Video","parentTitle","Hearing on California Electricity Costs (Part 3) - June 26, 2025","oneSentenceSummary","Representatives of California’s municipal utilities association and the California Community Choice Association told the Little Hoover Commission that local governance, access to tax‑exempt bonds and joint procurement explain why many publicly owned utilities and CCAs have lower retail rates than investor‑owned utilities.","taxTitle","Little Hoover Commission, Other State Agencies, Executive, California","taxId",76737,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6180726,"Public commenters and program administrators clash over SGIP and PSPS mitigation; administrator says some incentives moved to general fund",478,8207000,8685000,"/Search/View?dp=1&key=5116752-c975178e7c11d5c6cd9537b561e2726d&start=8207&end=8685","https://assets.pipeline.soar.com/5116752-c975178e7c11d5c6cd9537b561e2726d/thumbnail_8207000.jpg","/articles/6180726/California/Public-commenters-and-program-administrators-clash-over-SGIP-and-PSPS-mitigation-administrator-says-some-incentives-moved-to-general-fund","https://secure.pipeline.soar.com/6180726-074f1f4e4532c90b74b0c0db6bcc093f/orig.mp4?Expires=1771179450&Signature=mOWPw0sdAvbE6AFnWzVMNa5pkFPaoo7lID4uUUq7sUN1QI09e9SNVQrWleQarw0hAjxNpTAYmjMuzwwShY~rcOTgcPJeh319y3qS8i8rb7extBFhj6jio9xFJwo5wy7Ea28uUA9iHD-C2Cl0aog74Id0tj6vSWtlCuhcpXAz4DetcJLleild7Sv7W0ePQAtR9RAsfSjaVNgAh3reUe7shuPMTp3EiYgSSbpzDUeNN7nTMehOUTd675M6v7A2p2dMNXCXedBZ6VrdV3bFxDhMA-amDcgQ7fqdCCiY4Zjske8e57PzuTxKYTi1SQvJobM6rZguLNJRXJcHslRnX-TVEg__&Key-Pair-Id=KUT5TJCACFTXG","Public comment at the end of the Little Hoover Commission hearing included a resident complaint about outage impacts and a program administrator’s clarification about incentive funding.

Peter Spadia, a Walnut Creek resident, described repeated outages at his home and neighborhood and said existing mitigation programs do not address reliability loss from Public Safety Power Shutoffs (PSPS) and enhanced‑circuit (EPSS) outages. “These programs are wholly inadequate to mitigate up to 12 power outages a year,” Spadia said, describing repeated summer‑through‑fall interruptions and saying SGIP‑style incentives and other programs do not substitute for reliable service to households on affected circuits.

Rocky Fernandez, senior policy director at the Center for Sustainable Energy, urged the commission to note recent changes to incentive programs. He said the Self‑Generation Incentive Program (SGIP) transitioned from ratepayer funding to general‑fund support under Assembly Bill 209 and that the Solar on Multifamily Affordable Housing program (SOMA) is funded from investor‑owned utility cap‑and‑trade proceeds rather than direct ratepayer charges. Fernandez said SOMA produces monthly bill reductions of roughly 39% to 61% for participating households and reported program evaluations show the program reduces costs under certain scenarios.

The public comment exchange illustrated the gap between program funding sources and the lived reliability impacts residents seek to mitigate. Spadia urged more direct attention to the needs of customers on PSPS/EPSS circuits; Fernandez urged the commission to reflect recent funding shifts in its final report.","A Walnut Creek resident told the Little Hoover Commission that current incentive programs do not adequately mitigate repeated PSPS and EPSS outages; a program official said SGIP was recently moved to general‑fund support and that SOMA uses cap‑and‑trade proceeds to deliver monthly bill relief for multifamily affordable housing.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6180731,"Commission hears warnings on interconnection delays, rising PPA prices and AI data‑center load growth",630,7080000,7710000,"/Search/View?dp=1&key=5116752-c975178e7c11d5c6cd9537b561e2726d&start=7080&end=7710","https://assets.pipeline.soar.com/5116752-c975178e7c11d5c6cd9537b561e2726d/thumbnail_7080000.jpg","/articles/6180731/California/Commission-hears-warnings-on-interconnection-delays-rising-PPA-prices-and-AI-datacenter-load-growth","https://secure.pipeline.soar.com/6180731-5d015edcc9a2c9f2caffb0175718bb6d/orig.mp4?Expires=1771179450&Signature=fMnpKEFcH0QvkO9sUufxVSoQRILmvxRohwCROCRlEzxU3YDV3rmL-Qn~KNkXi0VHgkRdciiAnBF0z9j-7v4A1YNOfmMGdXo7-hPBhva5NARXBmoH2RsqwdAex4~MFUpzWM4jpNe1ZYq5v137Qw~FBdIUPidaqEh--z3NIyGyOCzHxGLg0PS9VtM3~5y4XIInMc-EmDjsGXFJKuDGdc8bg2p8VG9EG78Yad7KfPR-jO0L~mzBwbbHi9gS7TPbPZRkjTQuC-GpIZ6JWrg2Z2CSEzJEzRzqnvEm6i3S3S5mnst7AHI9zKWPZodmMz8rQQ52C~W3uksTDagiW1Sh0CUsJA__&Key-Pair-Id=KUT5TJCACFTXG","Multiple witnesses told the commission that the market for new generation and storage faces a supply‑and‑demand imbalance that is increasing procurement costs and causing delivery delays.

Mario DeBernardo of the Southern California Public Power Authority and Derek Dolphy (CMUA) said developers are offering fewer competitive proposals than before the pandemic because demand — from CCAs, IOUs, large commercial buyers and emerging AI/data‑center customers — has increased while interconnection timelines, permitting delays and supply‑chain constraints have lengthened. “We are experiencing a supply and demand imbalance,” DeBernardo said, noting project interconnection and permitting delays and higher equipment costs.

Beth Vaughn (CalCCA) said the state’s current procurement and resource adequacy rules and frequent regulatory changes have created planning uncertainty and, at times, high short‑term market purchases. She cited modeling showing that a trading approach tied to hours of obligation — rather than the current monthly aggregation — could have avoided about $105,000,000 of excess RA purchases last summer and could lower RA costs by an estimated $77,000,000 per year going forward; she said the commission rejected a proposed decision advancing that approach and CalCCA would pursue other channels.

Witnesses also raised a specific near‑term concern: project delivery and interconnection timelines are increasing (transformer and equipment lead times and queue delays were highlighted) and developers and utilities told commissioners some delivery dates may be delayed by multiple years, which raises costs.

Commissioners asked whether the state and its regulators are having enough public discussion about the potential load impact of large AI‑era data centers; several witnesses said the conversation is nascent. A PG&E representative had told commissioners earlier in the hearing that interconnection applications suggested the potential for very large data‑center demand in parts of its territory and that regulators and planners should study the consequences.

The witness group recommended clearer, more stable procurement rules, faster interconnection timelines, and pilot finance mechanisms for transmission projects and stressed the importance of federal tax incentives for keeping project costs down. They also urged the commission to examine rules that make hourly RA obligations hard to meet through trading.","Municipal utilities, CCAs and developers warned the commission that supply‑side constraints, long interconnection queues, and growing data‑center demand are raising procurement costs and resource adequacy prices; one CCA presented an hourly‑slice trading proposal it says could cut RA costs.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6180740,"IOUs tell Little Hoover Commission higher bills stem from wildfire work, policy decisions; urge state funding shifts and NEM reform",480,0,480000,"/Search/View?dp=1&key=5116752-c975178e7c11d5c6cd9537b561e2726d&start=0&end=480","https://assets.pipeline.soar.com/5116752-c975178e7c11d5c6cd9537b561e2726d/thumbnail_0.jpg","/articles/6180740/California/IOUs-tell-Little-Hoover-Commission-higher-bills-stem-from-wildfire-work-policy-decisions-urge-state-funding-shifts-and-NEM-reform","https://secure.pipeline.soar.com/6180740-541fcca332f9a29a205ef3fce3582756/orig.mp4?Expires=1771179450&Signature=GE3Cd16iTP94F4E1NU6mJyFmzi9EesjG8pCSaLe2YvewxRrtvA1Xe9xE4usH09pwwvujZfWfzCoSriBNeQAie5BsJ1VDZTB3LczOXDbCo6YZhUrTOkgIsfE2XGp9TgucFd63ZPPeoIwMYaqBj6WEviqDWw0MARvf2jgZBwVNckjrG02J7CeBq9u6WKGbXwIiPGHGRzaqgLoc~oapwyVgLscNUjhMkqE2kEXr1k3rp4XqQcUyVadg76pBb5WtBBgb7HhyWjwz1mNN~2-8qQBjoW675VIcOtXqjS63MVEMSEgdpvbdPAF~CgJbtouR4xAA5UmDLikqnTdKhnA6IIS5Zg__&Key-Pair-Id=KUT5TJCACFTXG","Pedro Nava, chair of the Little Hoover Commission, opened a hearing on California electricity costs with a reminder that the session would focus on what drives rising bills and what utilities propose to do about them. He introduced witnesses from investor‑owned utilities, municipal utilities, and community choice aggregators.

Adam Smith, director of regulatory relations at Southern California Edison, told commissioners that the industry operates under a “regulatory compact” in which utilities have an obligation to serve, submit capital plans to regulators and raise private capital to pay for approved projects. “We have an obligation to serve,” Smith said. He said investor‑owned utilities must attract capital in public markets and that rating agencies closely watch the regulatory and legislative environment; SCE was on “negative watch,” he said, meaning higher borrowing costs could follow and be passed to customers.

Shilpa Ramayana, vice president of regulatory proceedings and rates at Pacific Gas and Electric, walked commissioners through a graphic breaking down an average customer dollar: “32¢ of each dollar is the cost … to generate and buy electricity,” she said; about 31¢ covers state‑mandated programs (PG&E identified wildfire safety work as roughly 16¢ of the dollar), about 22% covers operating, maintaining and upgrading the grid, 10% is the authorized profit, and taxes account for about 5%. Ramayana said residential customers without solar pay roughly 15% more to cover grid costs for solar customers (PG&E said that share rose to about 18% in 2025).

Both witnesses stressed two related points: many recent cost increases are tied to policy choices and to wildfire mitigation investments, and utilities see tools that can reduce bills if adopted. PG&E and SCE urged the state to: shift some public‑purpose programs from ratepayer funding to the general fund; reform net energy metering (NEM) to transition NEM‑1/2 customers to NEM‑3 after 10 years or upon sale; consider securitization and other financing options selectively; and expand use of cap‑and‑trade allowances or reform the climate credit to smooth customer bills across critical months. Ramayana said those measures “offer solutions that can provide customers relief immediately” and also help longer‑term affordability.

Both witnesses warned of tradeoffs. Smith said overreliance on debt or policies that “undermine the regulatory compact” could harm credit ratings and raise borrowing costs. Ramayana described recent steps PG&E has taken that reduce near‑term bills: reductions in some wildfire cost recoveries, renegotiated renewable contracts, self‑insurance arrangements, and returning unused authorized program funds to customers. PG&E said combined gas and electric bills average about $300 per month and that the company expected 2026 procurement costs to be lower than 2025.

Commissioners pressed witnesses on several fronts: why investor‑owned utility rates remain higher than public utilities in many places; whether securitization is being used enough; the role of the general rate case (GRC) in setting longer‑term cost trajectories; and how load growth and data centers could affect future bills. Witnesses repeatedly distinguished between costs largely controlled within utility operations and costs driven by external policy choices or by emergency‑driven spending such as wildfire mitigation.

The hearing concluded with commissioners and staff noting follow‑up issues — including the Public Utilities Commission’s role in rate setting and oversight — to be examined in later hearings.","Representatives of Southern California Edison and Pacific Gas and Electric said investor‑owned utilities’ capital needs, wildfire mitigation and state policy choices have driven recent rate increases and urged lawmakers to move some programs off electric bills and to reform net energy metering.","actionData","errors"]

Article not found

Publicly owned utilities and CCAs say governance, financing explain lower rates; CalCCA details $19B tax‑exempt bond program

Public commenters and program administrators clash over SGIP and PSPS mitigation; administrator says some incentives moved to general fund

Commission hears warnings on interconnection delays, rising PPA prices and AI data‑center load growth

IOUs tell Little Hoover Commission higher bills stem from wildfire work, policy decisions; urge state funding shifts and NEM reform