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CPUC: rooftop solar tariffs and wildfire costs are top drivers of rising bills; opens rulemaking on climate credit
Summary
At a Little Hoover Commission hearing, the California Public Utilities Commission told commissioners that rooftop solar tariffs and wildfire-related costs are the two largest drivers of rising electricity rates, and said it is opening a rulemaking to study reallocating the state's climate credit to help lower bills for vulnerable customers.
Luam Tesfaye, deputy executive director for energy and climate policy at the California Public Utilities Commission, told the Little Hoover Commission on July 24 that the CPUC views rooftop solar tariff design and wildfire-related costs as “the 2 largest drivers of electric rates today.” Tesfaye described the CPUC analysis conducted after Governor Newsom's Executive Order N-5-2024 directing work on electric bill affordability and presented several possible responses, including moving some program costs off utility rates and reallocating the state's climate credit.
Why it matters: The CPUC said the combination of long-term capital investments in transmission and distribution, wildfire mitigation spending and the continuing presence of legacy net energy metering…
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