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Experts tell Little Hoover Commission that utility spending, not rooftop solar, is the main driver of rising electricity rates
Summary
Economic consultant Dr. Richard McCann and industry witnesses told the Little Hoover Commission on March 27 that rising utility spending on transmission and distribution — not rooftop solar — explains much of California’s high electricity rates, and urged stronger regulatory scrutiny and reforms at the Public Utilities Commission.
Dr. Richard McCann, a founding partner of economic consulting firm M cubed, told the Little Hoover Commission on March 27 that “utility spending is driving rate increases.” He said transmission and distribution spending has risen about 300% over the last 20 years while demand has been flat, and that the resulting spending increases have tracked almost one-for-one with higher retail rates.
Why it matters: Commissioners heard that addressing utility capital spending and the regulatory incentives that reward it would be more effective at reducing rates than trying to shift costs onto rooftop solar owners. McCann and witnesses argued the Public Utilities Commission (CPUC) lacks the technical capacity to fully vet large utility spending requests and that legislative or…
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